London, March 2, 2026, 08:31 GMT — Regular session.
- BAE Systems shares pop at the start of London trading, riding momentum across defense stocks.
- Company shares got a lift at the open after a new buyback filing landed.
- Focus has turned to Middle East news, oil price swings, and the upcoming dividend calendar.
Shares of BAE Systems (BAES.L) surged 7.9% to 2,278 pence in early London trade Monday, opening at 2,239 pence and sticking close to their 52-week peak. So far, the session has seen the stock move between 2,221 and 2,282 pence. 1
Markets reopened to a more volatile Middle East situation, sending energy prices higher and weighing on risk assets. Brent crude jumped 6.4% to $77.57, while gold advanced 1.6%, according to Reuters. A separate Reuters analysis pointed out that European defense firms could benefit if the conflict persists. 2
UK Prime Minister Keir Starmer said Sunday that London had cleared a U.S. request allowing its military to use British bases for what he called “specific and limited” defensive actions targeting Iranian missiles. He emphasized that Britain didn’t participate in the U.S.-Israel strikes themselves. Elsewhere, on Monday, the UK government handed Italy’s Leonardo a 1 billion pound contract for 23 medium-lift helicopters. Defence Secretary John Healey flagged the deal’s export potential. 3
BAE released a buyback update ahead of the session, disclosing that it purchased 103,006 shares for cancellation on Feb. 27. Prices ranged from 2,113 to 2,142 pence, with a volume-weighted average price landing at 2,126.09 pence, according to a filing. The VWAP reflects the average price paid per share, factoring in trade size. 4
Shares closed out Friday at 2,112 pence, slipping 0.28% for the session. The stock moved in a 2,111-to-2,143 pence range, based on exchange figures pulled by Investing.com. 5
Oil is still dragging on the broader tape. “The key factor here is the closing of the Strait of Hormuz,” said Ajay Parmar, director of energy and refining at ICIS. Parmar cautioned that if the disruptions don’t clear up, prices could be “much closer to $100” a barrel. 6
BAE has been lifted by the broader surge in defence shares that began in 2022. Back in February, during its full-year earnings release, chief executive Charles Woodburn described a “new era” of defense spending poised to fuel further growth. The company projected sales growth between 7% and 9%, with operating profit set to climb 9-11% by 2026. 7
Still, the trade can flip quickly. A hint of de-escalation might pull oil lower and reverse some of Monday’s surge into defense stocks. On the other hand, a drawn-out energy shock could hit both government budgets and overall risk appetite simultaneously.
In a separate update at month-end, BAE reported 3.16 billion shares outstanding, with 163.3 million sitting in treasury. That brings the number of total voting rights to roughly 3.0 billion. 8
Investors now shift their focus to Middle East headlines and BAE’s upcoming dividend schedule. The shares go ex-dividend April 23, so holders on the April 24 record date will qualify for the June 4 payment. BAE also marked July 30 for half-year results. 9
