Defense & Military
BAE Systems 2025 Results Show 10 Percent Sales Growth and Record Backlog
BAE Systems reports 10% sales growth to £30.7B in 2025, record £83.6B backlog, major export deals, and positive 2026 outlook.

This article is based on an official press release from BAE Systems.
BAE Systems reports record backlog and double-digit growth in 2025 results
BAE Systems announced its full-year financial results for 2025 this week, reporting a 10% increase in sales to £30.7 billion and a record order backlog of £83.6 billion. The company highlighted strong operational performance across all sectors, driven by a “new era of defence spending” and major export agreements.
According to the company’s statement, underlying earnings before interest and tax (EBIT) rose by 12% to £3.32 billion, while underlying earnings per share (EPS) also increased by 12% to 75.2p. The Board recommended a final dividend of 22.8p, bringing the total dividend for 2025 to 36.3p, a 10% increase over the previous year.
In the official release, BAE Systems Group Chief Executive Officer Charles Woodburn commented on the results:
“Our results highlight another year of strong operational and financial performance, thanks to the outstanding dedication of our employees. In a new era of defence spending, driven by escalating security challenges, we’re well positioned to provide both the advanced conventional systems and disruptive technologies needed to protect the nations we serve now and into the future.”
Major program milestones and export wins
The company reported a strong orders intake of £36.8 billion for the year. A significant contributor was the UK Government’s agreement with Türkiye to acquire 20 Typhoon aircraft. BAE Systems stated this deal is anticipated to be worth £4.6 billion to the company and will help sustain Typhoon production and approximately 20,000 jobs across the UK.
In the maritime domain, Norway selected the Type 26 frigate for its future warship procurement program. The company noted that this £10 billion Government-to-Government agreement represents the UK’s largest-ever warship export deal by value. Additionally, the company laid the keel for HMS Dreadnought, the first of four new nuclear-deterrent submarines for the Royal Navy, at its Barrow-in-Furness shipyard.
BAE Systems also highlighted progress in the US market. The company secured a $1.2 billion contract to provide the US Space-Agencies with space-based missile tracking capabilities. In the land sector, the Armored Multi-Purpose Vehicle (AMPV) program reached its 500th delivery milestone, with the company executing full-rate production to meet the US Army’s requirement for nearly 3,000 vehicles.
Strategic partnerships and future technologies
The year also saw the launch of “Edgewing,” a joint venture with international industry partners in Italy and Japan for the Global Combat Air Programme (GCAP). According to the press release, Edgewing will be accountable for the design and development of the next-generation combat aircraft. The company also noted the selection of its Malloy T-150 uncrewed air systems by the Royal Navy for logistical support during the Carrier Strike Group 2025 deployment.
2026 financial outlook
Looking ahead, BAE Systems provided guidance for the year ending December 31, 2026. The company expects sales to increase by 7% to 9% and underlying EBIT to grow by 9% to 11%. Underlying EPS is also projected to rise by 9% to 11%. Free cash flow is targeted to exceed £1.3 billion for the year.
The company also updated its three-year cumulative free cash flow guidance. For the period 2026–2028, BAE Systems expects cumulative free cash flow to be in excess of £6.0 billion. The guidance assumes an exchange rate of $1.32:£1, consistent with the actual 2025 rate.
Sources: BAE Systems
Photo Credit: BAE Systems
Defense & Military
Airbus Delivers First CT-153 Juno to Royal Canadian Air Force
Airbus handed over the first H135 CT-153 Juno helicopter to the RCAF on June 17, 2026, under Canada’s FAcT program.

Airbus delivered the first H135 helicopter, officially designated the CT-153 Juno, to the Royal Canadian Air Force (RCAF) on June 17, 2026, initiating the physical fleet modernization for Canada’s Future Aircrew Training (FAcT) program.
The handover took place at the Airbus Helicopters facility in Fort Erie, Ontario. According to an Airbus press release, the twin-engine platform will serve as the foundational rotary-wing training aircraft for the next generation of Canadian military pilots. The delivery occurred 18 months after the initial program framework was established.
Modernizing Canadian pilot training
The FAcT program is a comprehensive initiative to replace legacy training systems and establish a unified standard for multi-engine transition training within the RCAF. The aircraft acquisition is managed by SkyAlyne, a joint venture between CAE and KF Aerospace.
On November 4, 2024, SkyAlyne and KF Aerospace signed a contract with Airbus to acquire 19 H135 helicopters. The first of these aircraft was publicly unveiled at the CANSEC 2026 defence exhibition in Ottawa on May 27, 2026, prior to its official handover.
The Canadian variants feature specific modifications developed in-country. These include customized avionics, communications systems, and cockpit configurations tailored to RCAF requirements. The aircraft are also equipped with the Airbus Helionix avionics suite.
Industry and military collaboration
The 18-month timeline from framework to delivery required close coordination between the manufacturer, the training consortium, and the Canadian government. SkyAlyne General Manager Kevin Lemke stated that the collective mission is to ensure the RCAF maintains a strategic advantage in the skies.
“By working together collaboratively, we, industry, military, and Government, can deliver better work, faster, to make sure the RCAF has the best trained aircrew in the world, and our selection of the CT-153 Juno is a core component of that effort,” Lemke said.
Dwayne Charette, President of Airbus Helicopters in Canada, noted that the delivery highlights the depth of domestic capability. He added that the milestone underscores a long-term commitment to supporting Canadian defense with in-country expertise.
Global footprint of the H135
The RCAF joins a broad international operator base utilizing the H135 in military training roles. According to Airbus, 13 militaries globally currently operate the platform for aircrew instruction.
The manufacturer reports that more than 1,600 H135 family aircraft have been delivered worldwide across all variants. Of those, over 200 helicopters are either delivered or on order specifically for military training missions, accumulating more than 650,000 flight hours in that capacity.
AirPro News analysis
We view the 18-month turnaround from contract framework to first delivery as a notable achievement in modern defense procurement, a sector frequently characterized by extended timelines and supply chain delays. By selecting an established commercial off-the-shelf platform like the H135 and modifying it domestically, SkyAlyne and the RCAF have mitigated significant developmental risks.
The integration of the Helionix avionics suite will provide Canadian student pilots with a modern glass-cockpit environment that closely mirrors the operational helicopters they will eventually fly. This standardization is critical for smoothing the transition from the training environment to frontline RCAF squadrons.
Sources: Airbus
Photo Credit: Airbus
Defense & Military
AERO Vodochody Wins L-39 Skyfox Contracts in Africa and North America
AERO Vodochody secures L-39 Skyfox contracts with Angola and a North American operator, filling production through mid-2027.

Czech aircraft manufacturer AERO Vodochody AEROSPACE a.s. (AERO) has secured contracts to deliver its L-39 Skyfox trainer to the Angolan Air Force and a North American civil operator, filling the company’s production backlog through the second quarter of 2027.
Announced in a press release on June 18, 2026, the agreements mark the entry of the Skyfox platform into the African and North American markets. The recent deals contribute to a broader surge in orders for the manufacturer, which has logged commitments for nine new Skyfox military aircraft and several L-39 Albatros overhauls over the past few months, totaling more than EUR 200 million.
Angolan Air Force fleet modernization
The Angolan Air Force contract includes up to four new-build L-39 Skyfox aircraft. According to AERO, the military operator initially evaluated overhauling its existing fleet of legacy L-39 Albatros trainers. After assessing operational capabilities and economic factors, the air force opted to procure the modernized Skyfox platform instead.
Beyond the airframes, the Angolan agreement encompasses related support services and products designed to help the air force establish a comprehensive training system for its pilots.
North American expansion and production impact
The second contract involves a single L-39 Skyfox destined for an unnamed civil operator in North America. Reporting from Air Data News indicates the customer already operates legacy L-39 aircraft and intends to use the new Skyfox to commercially market the brand within the region.
AERO President and Chairman of the Board Viktor Sotona stated the entry into these two new markets significantly increases the visibility of the aircraft, enabling direct presentations to other prospective customers.
“The new contracts confirm that the Skyfox programme has global potential and that AERO is on the right track,” Sotona said.
The influx of orders, which includes two aircraft subject to options among the nine recently ordered, has secured AERO’s manufacturing line capacity through mid-2027. The L-39 Skyfox, officially rebranded from the L-39NG designation on October 16, 2024, now maintains an operational footprint spanning four continents.
AirPro News analysis
The decision by the Angolan Air Force to pivot from overhauling legacy airframes to purchasing new-build aircraft highlights a critical transition point for operators of Cold War-era trainers. As the original L-39 Albatros fleet ages, the cost delta between deep overhauls and acquiring the modernized Skyfox is narrowing. We expect AERO to leverage this Angolan procurement as a case study when pitching the Skyfox to other African and Asian nations currently facing similar fleet recapitalization decisions. The strategic placement of a demonstrator aircraft with a North American civil operator also provides AERO with a low-cost marketing foothold in a region with a large, active community of private tactical aircraft owners.
Sources: AERO Vodochody AEROSPACE a.s.
Photo Credit: AERO Vodochody
Defense & Military
VC-25B Bridge Aircraft Arrives at Joint Base Andrews
The U.S. Air Force accepted the L3Harris-converted VC-25B Bridge aircraft on June 19, 2026, ahead of the primary Boeing delivery in 2028.

The U.S. Air Force received an interim presidential aircraft on June 19, 2026, as the VC-25B “Bridge” jet arrived at Joint Base Andrews (ADW) to begin commissioning flights. The modified Boeing 747-8, delivered by L3Harris Technologies, provides an immediate solution to severe delays in the primary replacement program.
In a press release issued by the U.S. Air Force, officials confirmed the aircraft arrived sporting a new red, white, and blue livery. The delivery follows a rapid 10-month conversion process by L3Harris, initiated after supply chain and labor shortages pushed The Boeing Company’s delivery of the standard VC-25B fleet from 2024 to 2028.
Rapid conversion and security audits
The Bridge aircraft originated as a VIP-configured Boeing 747-8 donated by Qatar. Following dissatisfaction from President Donald Trump regarding the timeline of the primary Boeing contract, a dedicated task force launched in February 2025 to accelerate an interim capability. L3Harris secured the contract to transform the donated airframe into a secure military platform.
According to flight tracking data and program details provided by AirPro News partner AirNav Radar, L3Harris completed the overhaul in a record 10 months. To meet this accelerated schedule, contractors kept the luxury Qatari interior minimally changed. The aircraft was stripped down to its cabling to allow for comprehensive forensic security audits, ensuring no foreign monitoring devices were present before installing classified communications equipment.
General Ken Wilsbach, Air Force Chief of Staff, highlighted the rapid turnaround in a statement provided to AirNav Radar.
“We are proud to deliver the VC-25B Bridge aircraft to the President. Many thought it could not be done, but the United States Air Force was able to execute and provide a secure, reliable airborne command post on an accelerated timeline.”
Commissioning and public debut
With the aircraft now stationed at Joint Base Andrews in Maryland, the Presidential Airlift Group will conduct a series of commissioning flights. The U.S. Air Force stated the aircraft has entered service to provide secure continuity for the commander in chief following its final government modifications.
The modified Boeing 747-8 is scheduled to make its first major public appearance shortly after completing these initial flights. President Trump confirmed the aircraft will participate in the United States 250th Anniversary flyover in Washington D.C. on July 4, 2026.
According to reporting by The Aviationist, the President noted the significance of the upcoming event.
“This will be a flyover on July 4th I think I can say the likes of which we’ve never seen before.”
Fleet transition and legacy aircraft
The introduction of the Bridge aircraft alters the operational footprint of the Presidential Airlift Group. The legacy Boeing VC-25A jets, which have served as the primary presidential transport for decades, will now transition into a backup role. AirNav Radar notes these older airframes will frequently operate under the “Air Force Two” callsign when carrying the Vice President, remaining in service until their planned retirement to museums in 2029.
Boeing continues work on the two fully-fledged VC-25B aircraft. Defense News reports that a lack of properly cleared workers and ongoing Supply-Chain constraints forced the timeline revision to 2028.
AirPro News analysis
The successful Delivery of the VC-25B Bridge aircraft demonstrates a rare instance of rapid procurement within the heavy Military-Aircraft sector. By leveraging a donated, pre-configured Boeing 747-8 and accepting a minimally changed interior, the U.S. Air Force bypassed years of standard acquisition bureaucracy. We view this 10-month turnaround by L3Harris as a potential case study for future interim military platforms, proving that commercial-off-the-shelf or donated assets can be securely militarized on compressed timelines when political will and operational necessity align. However, the forensic security required to clear a foreign-sourced airframe for presidential use highlights the unique challenges of bypassing traditional domestic production lines.
Sources: U.S. Air Force
Photo Credit: U.S. Air Force
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