London, February 13, 2026, 09:36 GMT — Regular session
- BAE Systems shares picked up in early London trade.
- The group announced it’s kicking off another round of share repurchases as part of its ongoing buyback programme.
- Italy’s parliament has approved new funding for the GCAP fighter project, which includes BAE.
BAE Systems edged up roughly 1.1% to 1,947 pence during early Friday trading in London, following a nearly unchanged finish at 1,925 pence the previous day. Shares are still hovering near their 52-week peak of 2,159 pence. (MarketScreener)
BAE remains squarely in the spotlight this morning, with investors juggling the appeal of reliable capital returns and a line-up of long-cycle projects. Results season kicks off next week. The stock, for now, carries expectations for smooth delivery.
Buybacks work like this: a company snaps up its own shares—sometimes cancels them—and the number of shares drops. That move can bump up earnings per share, without touching overall demand or shifting contract schedules.
BAE disclosed it snapped up 110,911 shares on Feb. 12, with prices scattered between 1,915.50 and 1,947.00 pence. The volume-weighted average price landed at 1,929.56 pence. All shares from this buyback are set for cancellation. That brings its tally for the second tranche of the program to 17,082,255 shares so far, according to the company. (Investegate)
BAE, in its November trading update, stuck with its outlook: 2025 sales are still seen up 8% to 10%, EBIT growth pegged at 9% to 11%, and free cash flow projected to clear £1.1 billion. “Confident in the outlook,” said chief executive Charles Woodburn. The group is also pointing to about £1.5 billion in cash returns for shareholders next year, with share buybacks making up roughly £500 million. (Investegate)
Thursday brought fresh attention to the sector after Italy’s parliament signed off on €8.77 billion in funding for the Global Combat Air Programme (GCAP)—the UK-Italy-Japan jet fighter collaboration that counts BAE among its partners. A document from parliament pegged initial-phase expenses at €18.6 billion, which is significantly higher than the roughly €6 billion estimated at 2021 prices. Foreign Minister Antonio Tajani noted his willingness to welcome additional countries into the fold. GCAP, developed by a joint venture including BAE, Italy’s Leonardo, and Japan Aircraft Industrial Enhancement (JAIEC), with support from Mitsubishi Heavy Industries, stands as a competitor to the Franco-German-Spanish FCAS. (Reuters)
This week, BAE’s U.S. unit announced Mona Bates will step in as senior vice president and chief information and digital officer beginning Feb. 23. President and CEO Tom Arseneault called out Bates’ “vision” and experience, saying she’s “the right leader” for its digital transformation push. (Business Wire)
Investors are tuned in for changes in guidance, updates on cash conversion, and clues about the pace of buybacks—not just headline revenue. Here, it’s order intake and margin performance that really move the stock.
Yet defence projects like GCAP are notorious for delays and budget overruns; the latest higher price tag is another warning that political and financial pressures aren’t going away. Over in northwest England, more than 1,200 BAE staff had planned to walk out over pay starting Feb. 2, potentially stretching through Feb. 20, though BAE insisted its production lines would keep running. (Reuters)
BAE’s full-year results land Feb. 18. That’s the one investors are eyeing to recalibrate 2026 outlooks—demand, cash flow, capital returns all in focus. (Investing)
