The US Army has awarded BAE Systems a significant contract valued at $137 million, a development confirmed just days before the company’s scheduled full-year results announcement. The agreement, facilitated through the Foreign Military Sales program, involves the supply of advanced missile warning systems for allied military forces. This substantial order bolsters the company’s backlog as investors turn their focus to the upcoming financial report.
- Contract Value: $137 million (confirmed yesterday)
- Customer: US Army (Foreign Military Sales)
- System: AN/AAR-57 Common Missile Warning System (CMWS)
- Key Date: Preliminary 2025 results scheduled for February 18, 2026
Strengthening Alliances with Advanced Protection
This contract highlights the persistent global demand for sophisticated electronic warfare and survivability equipment. The AN/AAR-57 system is designed to provide real-time detection of infrared and radio-frequency guided missile threats, alerting aircrews to initiate defensive countermeasures. This technology is already operational on more than 40 different aircraft platforms across over 20 nations worldwide.
Work related to this order will be performed across several BAE Systems facilities in the United States, including locations in Alabama, Texas, and New Hampshire. The influx of new business provides a timely reinforcement to the group’s operational foundation immediately preceding a key financial disclosure.
Should investors sell immediately? Or is it worth buying BAE Systems?
Earnings Report Takes Center Stage
The market’s immediate attention is now firmly fixed on February 18, when BAE Systems is set to release its financial performance figures for the 2025 fiscal year. Company guidance has previously projected revenue growth of 8-10% and an increase in underlying EBIT of 9-11%. The firm’s order intake for 2025 had already been reported in November as exceeding £27 billion.
Analyst sentiment appears mixed in the run-up to the report. While the consensus price target for the shares stands at 21.49 GBP, Jefferies downgraded the stock to a “Hold” rating on February 2. Concurrently, the company continues its capital return initiatives, repurchasing and cancelling an additional 115,039 of its own shares on February 5 as part of an ongoing buyback program. The forthcoming results will reveal whether the defense contractor managed to achieve its forecasted EBIT growth at the upper end of its guided range.
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