Skip to content
Business — 2025 — Stocks — Hargreaves — Fighter — Industry — Ftse — Tariffs — Investing — Finance

BAE Dismisses Trump's Tariffs Amid Anticipation of Profiting from Increased Military Expenditure

Defense technology conglomerate BAE, known for producing fighter jets, naval vessels, and weapons, sees a 'promising series of additional prospects' in the increase of military budgets across all its business areas.

,   and  Administrator
3 min read

BAE Dismisses Trump's Tariffs Amid Anticipation of Profiting from Increased Military Expenditure

BAE Systems Brushes Off US Tariff Fears, Eyes Booming Military Spending

British defense giant BAE Systems isn't sweating over the US tariff threats, viewing them as a promising set of opportunities as military spending climbs higher.

The maker of fighter jets, ships, and munitions affirmed its strong start in 2025, Confidently brushing off Donald Trump's tariffs.

"The lion's share of gear we supply to our U.S. customers is crafted in our American operations, boasting an almost entirely domestic supply chain," BAE declared. "We don't foresee any material setbacks."

War in Ukraine, escalating tensions over Taiwan, and India-Pakistan skirmishes fuel demand for BAE. Meanwhile, the firm also points to increased defense spending by European NATO allies and swelling military budgets in the UK, the Middle East, and the Far East.

BAE's FTSE 100 shares took a 2.3% tumble, dropping 41.5p, to 1729p.

Profits On The Rise:BAE reaffirms that the surge in defense budgets provides a powerful array of future opportunities across all its sectors.

Associated Articles

  • Previous
  • 1
  • Next
  • Barclays CEO Vows No More Branch Closures 'This Year' The Bank of England Differentiates With the Fed on Interest Rates...

Spread This Article

How This is Money Can Help

  • Discover the Best and Cheapest DIY Investing Accounts and Stocks & Shares Isas

DIY INVESTING PLATFORMS

AJ Bell

AJ Bell

Learn MoreLearn More### Hargreaves Lansdown

Hargreaves Lansdown

Learn MoreLearn More### interactive investor

interactive investor

Learn MoreLearn More### InvestEngine

InvestEngine

Learn MoreLearn More### Trading 212

Trading 212

Learn MoreLearn MoreAffiliate links: Taking out a product through these links may earn This is Money a commission, which does not influence our editorial independence.

Find the Best Investing Account for You

Enrichment Data:In essence, BAE Systems is approaching both US tariffs and rising military spending with poised optimism. Here are the key takeaways summarizing their stance and outlook:

Regarding US Tariffs

  • The company anticipates negligible effects from US-imposed tariffs due to its extensive American manufacturing facilities and largely domestic supply chain[1][3].
  • In light of this, BAE has not altered its full-year 2025 guidance[1][4].

Concerning Rising Global Military Expenditure

  • BAE is well-prepared to capitalize on increased defense spending across the globe, particularly with its focus on regions anticipating growing defense budgets[3][4].
  • The firm anticipates between 7% to 9% growth in revenue for 2025, highlighting the positive impact of escalating world military expenditures[3].
  • With a robust order backlog and promising pipeline of work, BAE enjoys good visibility and sustained long-term growth potential[3][4].
  • The company is actively engaging with the UK government during strategic defense reviews and industrial strategy discussions to align with future defense ambitions and seize upcoming opportunities[3].

Strategic Priorities and Outlook

  • CEO Charles Woodburn underlines BAE's positive start in 2025, and their commitment to completing long-term program obligations while bolstering efficiency and reshaping the portfolio for future expansion amid dynamic defense and security landscapes[3][4].
  • The company expects robust revenue growth, strong EBIT, and healthy cash generation in 2025[1][4].
  • BAE is pursuing ongoing investment plans, including an expansive share buyback program, demonstrating confidence in its financial future[4].

In summary, BAE Systems confronts US tariffs with minimal concern due to its extensive American production facilities and predominantly domestic supply chain[1][3][4]. Furthermore, the company is well positioned to benefit from the escalating global military expenditures[3][4].

  1. BAE Systems, undeterred by the potential US tariffs, maintains its optimism due to a near completely domestic supply chain within its American operations.
  2. The surge in global defense budgets provides a promising array of opportunities for BAE across all its sectors throughout 2025.
  3. The British defense giant anticipates between 7% to 9% growth in revenue for 2025, underscoring the positive impact of escalating world military expenditures.
  4. In light of increased military spending by European NATO allies, as well as swelling budgets in the UK, the Middle East, and the Far East, BAE expects sustained long-term growth potential.
  5. With a robust order backlog and an promising pipeline of work, BAE enjoys good visibility and is actively engaging with the UK government for upcoming opportunities in strategic defense reviews and industrial strategy discussions.
Defense contractor BAE, known for producing fighter jets, naval vessels, and ammunition, found increased defense budgets to present a promising array of prospects in all their business sectors, deemed as a 'solid foundation for future growth'.

Read also:

    Related

    Latest