Defence giant BAE hails record sales as workers remain on strike

Defence giant BAE Systems has hailed record results for 2025 while staff at its Lancashire sites continue striking over pay.

One of Britain's biggest unions, Unite, has called the weapons maker's £2.6bn annual profit "obscene" and warned strikes would continue until a better pay offer is made.

BAE, Europe's biggest defence contractor, unveiled a sharp rise in sales and record order backlog on Wednesday as governments around the world boost their defence budgets.

The weapons maker said it has made a fair offer to staff, who currently receive "market-leading pay and rewards", and it is engaging with unions.

BAE on Wednesday hailed record results for 2025, which saw sales rise by a tenth to a record £30.7bn.

Profit before tax at the defence giant was £2.6bn, up from £2.3bn a year earlier, with shares climbing by 3% after the announcement.

Chief executive Charles Woodburn highlighted the firm's record order backlog, as geopolitical uncertainty causes countries around the world to ramp up their defence spending.

Unite, which represents 5,000 workers at BAE's factories in Warton and Samlesbury, said its workers "know their value and want their fair share of the pie".

The union said higher-skilled staff at the sites were last year given 3.6% pay increases "against their will", while those on the factory floor agreed to a 4.2% rise and an extra day off.

Local Unite organiser Ross Quinn said the striking staff, on average salaries of £50,000, were "crucial" to BAE's success.

And Sharon Graham, Unite's general secretary, said: "BAE's profits are little short of obscene. The company is making billions from government contracts and yet refuses to pay our members what they are worth."

BAE has offered 3.7% raises for 2026. Those on strike are demanding 5.2% increases to account for last year's below-inflation raises.

A BAE Systems spokesperson said the current offer "is fair and ensures that our employees continued to receive market-leading pay and rewards, while balancing our need to be competitive and affordable for our customers".

On the prospect of strike action continuing into March, BAE said: "With the majority of our employees working as normal, we are focused on minimising any disruption and implementing our robust contingency plans."

Speaking after the company's record results, Woodburn, who has run BAE since 2017, said: "In a new era of defence spending, driven by escalating security challenges, we're well-positioned to provide both the advanced conventional systems and disruptive technologies needed to protect the nations we serve now and into the future."

The firm is expecting profits to grow further, by around 10% in 2026, it said.

BAE lost a High Court bid in November to prevent employees from walking out at its Lancashire factories.

The latest walkout began on 2 February, with more than 1,200 Unite members expected to strike until at least 20 February.

Richard Hunter, an analyst at Interactive Investor, said of the record year at the defence contractor: "BAE is basking in the increasing heat of geopolitical tensions with a set of results which have comfortably blown past estimates."

The UK, like other Nato allies has increased the amount it spends on weapons and defence contracts.

Prime Minister Sir Keir Starmer promised last year to spend 2.5% of national economic output – measured as gross domestic product (GDP) - on core defence by April 2027.

The BBC this week reported that could increase further to 3% by the end of this parliament.