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BAE Systems enjoys incumbent positions on a diverse set of major global defense programmes. The outlook for defense spending is positive with rising global threats exacerbated by the war in Ukraine. We believe this will be a multiyear growth trajectory as many nations globally, especially in Europe, have underspent since the end of the cold war. Additionally, BAE Systems is well aligned with U.S. Department of Defense growth programmes.
BAE Systems is a British global defense company. BAE has a dominant position in the U.K., is a top-six supplier to the U.S. Department of Defense, and has a strong presence in key defense markets (eg. Saudi Arabia and Australia). Exposure to programmes is well diversified. BAE derives 45% of sales from services and support and 35% from major programmes such as the F-35 Lightning II and Eurofighter Typhoon fighter jets. The balance of sales is derived from electronic systems and cyber intelligence.
