Defence News – Late February 2026
Estimated reading time 2 minutes
Increased defence spending across the world is driving UK defence giant BAE Systems to increased revenues and profits, helping to slash its borrowings.
The group, which employs thousands of people in processes ranging from warship design to cyber warfare at its sites in Bristol, Yeovil, Weymouth and Dorchester, reported a 10.3% rise in pre-tax profits to £2.57bn for the 12 months to December 31 on turnover up by 7.7% at £28.3bn
During the year BAE Systems racked up orders worth £36.8bn, compared with £33.7bn in 2024, leading to an overall order backlog of £83.6bn, against £77.8bn a year ago.
Sourced from TheBusinessDesk
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A £50m defence investment agreement has been signed to position Wales as a hub for autonomous military technology, with ministers promising high-skilled jobs, improved access to defence contracts for smaller firms and the creation of a new engineering college.
Landmark defence deal targets autonomous capability
The £50m Wales Defence Growth Deal was signed at Cardiff Castle by Defence Secretary John Healey, Wales First Minister Eluned Morgan and Secretary of State for Wales Jo Stevens.
The agreement aims to strengthen the UK’s capabilities in autonomous and uncrewed defence systems, including platforms used for intelligence, surveillance and reconnaissance operations.
Officials said thousands of skilled workers in Wales would be involved in designing, testing and manufacturing new technologies as the region becomes a launchpad for advanced defence innovation.
Sourced from The Manufacturer
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Aerospace and defence giant Melrose Industries has reported a jump in adjusted operating profit, driven by demand in its Engines and Defence divisions.
The Birmingham-headquartered group saw adjusted operating profit rise by 23% to £647m for the year ended 31 December 2025. Revenue grew 8% to £3.59bn, with adjusted operating margins improving by 240 basis points to 18%.
Chief executive Peter Dilnot said: “Melrose delivered another strong performance in 2025. Significant profit growth was driven by increased Engines and Defence demand, together with the positive impact of our multi-year transformation programme reading through. We generated £125 million of free cash flow, representing an inflection point for the Group, with substantial further increases in cash generation to come.”
Sourced from TheBusinessDesk
