London, March 13, 2026, 13:43 GMT
- BAE Systems edged up another 0.3% to trade around 2,306 pence as of 1319 GMT, building on Thursday’s 3.14% surge to 2,298 pence—a new 52-week high.
- FTSE 100 slipped 0.3%, oil stuck above $100 a barrel—defence stocks caught some attention as most other sectors lost ground.
Shares of BAE Systems plc edged up roughly 0.3% to 2,306 pence in Friday’s late London action, building on Thursday’s 3.14% jump to 2,298 pence. That move kept the stock around record territory, even as the FTSE 100 slipped 0.3%.
BAE stands out in London as a top pick for those banking on rising defense budgets. While oil surged past $100 a barrel and inflation fears were tempering expectations for looser policy, BAE’s shares stayed resilient, giving the company a market cap close to £67.2 billion.
This builds on guidance BAE gave investors back in February. The company credited a “new era of defence spending” for driving growth, after it announced a record £83.6 billion in its order backlog—contracts signed but not yet fulfilled—and projected sales growth of 7% to 9% by 2026. Chief Executive Charles Woodburn said BAE is positioned to deliver both legacy weapons systems and emerging tech. Reuters
New developments at the company gave shares a lift. On March 11, BAE announced it wrapped up the preliminary design review—an important engineering hurdle—on the U.S. Space Force’s $1.2 billion missile-warning and tracking satellite program. Thai Sheridan, head of BAE’s military space division, called it a milestone that “validates the implementation of our plan.” BAE Systems
Regulatory filings landed with little drama. On March 10, managing director Andrea Thompson offloaded 20,000 shares at £22.51145 apiece, pocketing roughly £450,229, according to a Thursday filing. In a different release, BAE reported snapping up a total of 18.8 million shares as part of the second phase of its buyback programme.
BAE wasn’t the only mover. Shares of Italy’s Leonardo surged up to 9%, hitting an all-time peak Thursday after the company unveiled a five-year strategy centered on computing, AI, and cybersecurity. CEO Roberto Cingolani summed up the pivot as a move “from bullets to bytes.” Reuters
The broader environment is doing some heavy lifting here. According to a Reuters report this week, oil shipping through the Gulf and Strait of Hormuz has nearly ground to a stop following attacks on vessels. On Friday, investors unloaded shares in most sectors except for energy, anticipating a protracted conflict. Defence stocks, meanwhile, have stood out for their strength in an otherwise softer market.
Still, the trade carries its own set of risks. Defence stocks could lose their geopolitical edge just as quickly if the conflict winds down. On the other hand, a prolonged Hormuz closure spells trouble: persistently high fuel prices and sluggish growth. “If the Strait of Hormuz re-opens by the end of March, the economic fallout should be limited,” Berenberg analyst Jonathan Stubbs said. Reuters
Valuation remains a sticking point. Back in January, Deutsche Bank downgraded BAE to “hold” and slapped a 2,140 pence target on the stock—lower than where it finished on Friday—citing a diminished upside after the recent run. Investors, though, seem unfazed: they’re sticking with the stock, betting on contract momentum, delivery and government budgets, despite that caution flag. Sharecast
