London, Feb 25, 2026, 09:01 (GMT) — Regular session
- BAE Systems shares down about 0.3% in early London trade
- Fresh U.S. Army Paladin order and APKWS production milestone in focus
- Company also disclosed another share buyback transaction
BAE Systems (BAES.L) shares slipped 0.3% to 2,135 pence by 0901 GMT, trimming early gains after the defence contractor’s latest run of U.S. contract headlines. The stock has traded between 2,130 and 2,149 pence and sits about 2% below its 52-week high. (Lse)
The move matters because BAE’s pipeline is increasingly shaped by U.S. programmes and short-cycle munitions demand, not just the slow grind of big ship and aircraft projects. Small announcements can land harder when the stock is already priced for strong order flow.
Defence names have been steady favourites this year, helped by expectations of higher spending and faster replenishment of kit. That leaves investors watching the “when” as much as the “what” in new awards.
BAE said on Tuesday it received a contract award valued at more than $500 million to produce additional M109A7 Paladin self-propelled howitzers and M992A3 ammunition carriers for the U.S. Army. Dan Furber, a BAE programme director, said the Paladin is “designed to provide a significant operational advantage” on today’s battlefields. (PR Newswire)
In a separate release, BAE said it recently delivered its 100,000th Advanced Precision Kill Weapon System (APKWS) laser-guidance kit. The kit turns unguided 2.75-inch rockets into precision-guided munitions and is used in counter-drone missions; executive Neeta Jayaraman said the milestone showed BAE can deliver technology “rapidly and at scale.” (PR Newswire)
A U.S. Department of War contract listing on Monday showed a BAE Systems unit won a ceiling (maximum) $98.9 million contract for F-16 commodities sustainment, structured as an indefinite-delivery/indefinite-quantity deal that allows orders to be placed over time. Work is scheduled to run through February 2037, the notice said. (U.S. Department of War)
BAE also kept its buyback programme ticking over. A regulatory filing dated Feb. 24 showed it bought 102,693 shares for cancellation in a Feb. 23 purchase at a volume-weighted average price of 2,132.59 pence, executed with Morgan Stanley, and said it had bought back 17.6 million shares in aggregate under the current tranche. (Investegate)
The stock has climbed about 25% year-to-date and about 64% over the past 52 weeks, an FTSE Russell factsheet dated Feb. 23 showed. That strength has left the shares near their highs and makes the pace of new business, and the cash return story, harder to ignore.
But contract headlines do not always translate into near-term earnings. Government awards can be spread over years, and production schedules can slip if budgets tighten or priorities shift, even when the top-line number looks big.
Traders will be watching for follow-on orders and any sign that munitions demand is staying hot, along with the daily rhythm of buyback disclosures. The next set-piece event on the calendar is BAE’s annual general meeting on May 7, followed by the final dividend payment on June 4, the company’s investor calendar shows. (Baesystems)
