Should I buy BAE Systems stock in 2025?
Is it the right time to buy BAE Systems?
ScoreBAE Systems, trading at approximately 1,851.50 pence per share on the London Stock Exchange as of early July 2025, commands a market capitalisation of nearly £54.7 billion. With an average daily trading volume of 7.58 million shares, investor interest remains consistently strong. BAE Systems has benefitted from a significant upswing in global defence spending and ongoing geopolitical tensions, which continue to support demand for advanced military technologies. A notable recent development is the completion of its strategic acquisition of Ball Aerospace, enhancing its capabilities in the high-growth space and missile defence sectors. Several major contract wins in 2024 across the UK, US, and global defence markets undergird a record order book of £77.8 billion, further bolstering visibility on future revenues. Despite a relatively high PER of 28.93, the company’s robust fundamentals and unmatched sector leadership help maintain positive investor sentiment. Analysts from more than 14 leading national and international banks have set a consensus price target of 2,407 pence, reflecting confidence in both the current outlook and long-term sector trends. Within the Aerospace & Defence sector, BAE’s diversified exposure and innovation focus make it a compelling candidate for disciplined portfolios.
- ✅Record order backlog of £77.8 billion underpins multi-year revenue visibility.
- ✅Strong global defence budgets supporting sustained long-term sector growth.
- ✅Market leader with unmatched presence in UK and US defence contracts.
- ✅Strategic Ball Aerospace acquisition enhances space and missile defence capabilities.
- ✅Consistently exceeded analyst expectations for revenue and profit growth.
- ❌High valuation with a PER of 28.93 reflects elevated future expectations.
- ❌Ongoing reliance on government budgets could expose revenues to policy shifts.
Score- ✅Record order backlog of £77.8 billion underpins multi-year revenue visibility.
- ✅Strong global defence budgets supporting sustained long-term sector growth.
- ✅Market leader with unmatched presence in UK and US defence contracts.
- ✅Strategic Ball Aerospace acquisition enhances space and missile defence capabilities.
- ✅Consistently exceeded analyst expectations for revenue and profit growth.
Is it the right time to buy BAE Systems?
- ✅Record order backlog of £77.8 billion underpins multi-year revenue visibility.
- ✅Strong global defence budgets supporting sustained long-term sector growth.
- ✅Market leader with unmatched presence in UK and US defence contracts.
- ✅Strategic Ball Aerospace acquisition enhances space and missile defence capabilities.
- ✅Consistently exceeded analyst expectations for revenue and profit growth.
- ❌High valuation with a PER of 28.93 reflects elevated future expectations.
- ❌Ongoing reliance on government budgets could expose revenues to policy shifts.
Score- ✅Record order backlog of £77.8 billion underpins multi-year revenue visibility.
- ✅Strong global defence budgets supporting sustained long-term sector growth.
- ✅Market leader with unmatched presence in UK and US defence contracts.
- ✅Strategic Ball Aerospace acquisition enhances space and missile defence capabilities.
- ✅Consistently exceeded analyst expectations for revenue and profit growth.
- BAE Systems
- The BAE Systems stock price
- Our full analysis of BAE Systems stock
- How to buy BAE Systems shares
- Our 7 tips for buying BAE Systems stock
- The latest news about BAE Systems
- FAQ
Why trust HelloSafe ?
At HelloSafe, our specialist has been tracking the performance of BAE Systems for over three years. Every month, over a million users in the UK trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by BAE Systems.
BAE Systems
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | A major UK-based company with strong global defence market exposure. |
| 💼 Market | London Stock Exchange (LSE) | Listed in London, ensuring access for UK and international retail investors. |
| 🏛️ ISIN code | GB0002634946 | British ISIN code; globally recognised for electronic trading and settlements. |
| 👤 CEO | Charles Nicholas Woodburn | The CEO leads the group through expansion and integration of major strategic assets. |
| 🏢 Market cap | £54.73 billion | High market cap reflects a leading role in aerospace and international defence. |
| 📈 Revenue | £26.31 billion (FY2024) | Revenue growth benefits from new contracts and strong global demand for defence. |
| 💹 EBITDA | £3.015 billion (FY2024) | Robust EBITDA demonstrates effective cost control and high operational profitability. |
| 📊 P/E Ratio | 28.93 | A relatively high ratio signals strong market confidence and elevated growth outlook. |
The BAE Systems stock price
The price of BAE Systems stock is declining this week. The current price is 1,851.50 pence, with a small daily increase of +0.11%, but a weekly drop of -1.91%. BAE Systems holds a market capitalisation of £54.73 billion and an average three-month trading volume of 7.58 million shares. The stock trades at a P/E ratio of 28.93, offers a dividend yield of 1.75%, and has a five-year beta of 0.33, suggesting low volatility. Despite the recent dip, high market confidence and strong fundamentals highlight its long-term investment appeal.
Our full analysis of BAE Systems stock
After thoroughly reviewing BAE Systems’ latest financial results and the stock’s performance over the past three years, we have utilised our proprietary algorithms to synthesise insights from an array of sources—including financial indicators, technical signals, peer performance, and current market trends. This comprehensive lens allows us to uncover investment opportunities grounded in data, sectoral momentum, and competitive dynamics. So, why might BAE Systems stock once again become a strategic entry point into the global aerospace and defence sector in 2025?
Recent performance and market context
BAE Systems has shown a remarkable trajectory of value creation, as its shares have achieved a +44.93% gain over the past twelve months and a substantial +60.58% rally over the previous six months, reaching 1,851.50 pence per share as of July 2025. The intraday movement has been modestly positive (+0.11%), while the past week’s minor retracement (-1.91%) appears as a healthy consolidation within a well-established uptrend. Strategic developments—including the integration of Ball Aerospace, landmark contracts with global defence agencies, and robust results surpassing market expectations—have served as major catalysts. In a context of heightened geopolitical tensions and rapidly expanding defence budgets, particularly in the US and UK, BAE Systems’ positioning as a core supplier and innovator strongly supports continued market interest.
Technical analysis
The technical structure of BAE Systems signals an attractive setup for new entries. Despite a temporary pause, the 14-day RSI remains neutral at 47.31—suggesting there is headroom for further upward movement. Oscillator readings show a stochastic of 55.32 (bullish) while the MACD, though slightly negative, is in position to reverse as consolidation abates. Importantly, the stock is consolidating near the robust support level of 1,849.50 pence, aligning with demand observed at key inflection points this year. While the 20-day, 50-day, 100-day, and 200-day moving averages currently present mild resistance (all above or just below the current price), this technical congestion may serve as a springboard for a renewed bullish impulse, especially as price action approaches the 52-week high of 1,998.50 pence. The convergence of momentum indicators and strong historical support makes the current price zone a technically appealing area for fresh allocations.
Fundamental analysis
On the fundamentals, BAE Systems is delivering across all operational and financial fronts. 2024 revenue rose 14% to £26.31 billion, complimented by EBITDA growth of the same magnitude to £3.015 billion. EPS reached 64.9 pence, handily exceeding consensus, while the company’s robust profitability reflects in an operating margin profile that is the envy of the industry. The price-to-earnings ratio of 28.93, though elevated, is justified by the company’s market dominance, strong balance sheet, and long-term growth trajectory.
BAE Systems’ core strengths lie in:
- An unrivalled defence contract book worth £77.8 billion, locking in years of revenue visibility.
- Sector-leading R&D and innovation, particularly in electronic systems, cyber & intelligence, and next-generation platforms.
- A diversified portfolio, both geographically and by technological segment, reducing revenue concentration risk.
- Well-established partnerships with the UK MOD, US Department of Defense, and key international allies.
Strategic acquisitions, like Ball Aerospace, not only enhance technological capability but also reinforce BAE Systems’ expansion into high-growth segments such as space and missile defence. Its brand is synonymous with reliability and advanced technology among both governments and investors, further strengthening its market position.
Volume and liquidity
The stock demonstrates solid market liquidity, averaging 7.58 million shares traded daily over the past three months—a clear signal of continuing market confidence from both institutional and retail investors. With over 3 billion shares in issue and a substantial free float, BAE Systems provides a flexible environment for active trading as well as long-term portfolio building. This depth allows for smooth price discovery, absentee significant spread-related risk, and rapid execution even amid market catalysts—qualities highly prized by sophisticated and everyday investors alike.
Catalysts and positive outlook
Looking forward, BAE Systems is positioned at the heart of several powerful secular trends and structural growth opportunities:
- Global Defence Spending Upswing: Major defence budgets in the US (over $800 billion projected in 2025) and the UK continue to expand, underpinning multi-year contract flow.
- Space and Missile Defence Growth: The acquisition of Ball Aerospace cements BAE’s leadership in next-gen space systems and missile tracking—segments expected to see double-digit CAGRs.
- Technological Innovation: Ongoing investment in electronic warfare, cyber, and sensing systems yields not just revenue growth but margin expansion via premium defence solutions.
- Robust Order Backlog: The record-high order book offers strong earnings visibility and serves as a buffer against short-term macro or policy fluctuations.
- Sustainability and ESG: Leadership in sustainability and robust governance positions BAE Systems favourably with institutional investors increasingly focused on ESG criteria.
- New Major Contracts: Recent success in securing over £5.7 billion in MOD contracts, alongside substantial international deals (US Space Force, AEGIS, M777 artillery), highlight execution capacity and global reach.
- Capacity Investments: Over £1 billion invested in new plant, people, and capability extensions in 2024 demonstrates a proactive approach to future-proofing growth.
Such catalysts are augmented by wider market support: defence and aerospace stocks continue to be repriced upwards as governments confront novel security challenges and invest in modernisation, providing strategic tailwinds for BAE Systems.
Investment strategies
From a strategic asset allocation perspective, the current price range (1,851.50 pence) offers multiple attractive entry points.
- Short-term positioning: The confluence of technical support, steady liquidity, and proximity to recent consolidation lows makes this zone attractive for tactical trades, particularly with an eye on a rebound toward the 1,998.50 pence resistance.
- Medium-term holdings: Investors targeting the next 6–12 months could favour BAE’s near-term growth catalysts—such as quarterly earnings, integration progress from Ball Aerospace, and the realisation of recently awarded contracts.
- Long-term allocation: Given its market leadership, technological moat, and robust dividend payout (1.75% yield), BAE Systems suits a foundational role in portfolios seeking stability and secular outperformance through structural defence trends.
Ideal positioning may be achieved at consolidation lows or just ahead of major announcements (e.g., the upcoming results on 30 July 2025), allowing investors to maximise participation in anticipated strength or upside revisions.
Is it the right time to buy BAE Systems?
Bringing together these dynamics, BAE Systems stands out as a flagship investment opportunity in the global defence and technology sectors. The company’s outstanding revenue, earnings growth, and record-breaking order book provide clarity, while ongoing innovation and shrewd capital allocation sustain both shareholder returns and competitive leadership. High liquidity and a growing dividend offer further reassurance, buffering short-term volatility.
While the valuation (P/E 28.93) reflects market optimism, it remains justified in light of the firm’s sector dominance, robust growth profile, and visibility into multi-year cash flows. In an era defined by geopolitical uncertainty and rapid technological advancement, BAE Systems seems to represent an excellent opportunity for investors seeking a combination of stability, innovation, and long-term value creation.
In summary, the fundamentals justify renewed interest. BAE Systems is exceptionally well positioned to benefit from the ongoing revaluation of defence technology leaders. For those seeking exposure to a best-in-class UK stock with enduring global relevance, this may be the ideal time to consider a strategic allocation—before the next phase of performance unfolds.
How to buy BAE Systems shares
Buying BAE Systems stock online has never been easier or safer thanks to FCA-regulated UK brokers. As a private investor, you’ll usually choose between two methods: buying shares directly (“spot buying”) or trading them via CFDs (Contracts for Difference). Both options are accessible, well supervised, and offer flexibility depending on your goals. To help you choose your platform, our unbiased broker comparison is available further down the page.
Spot buying
Buying BAE Systems shares for cash means you become a direct owner of the stock, benefiting from dividends and potential long-term gains. Most UK brokers charge a fixed commission (typically £5–£12 per transaction) or a very small percentage of the order amount.
Gain scenario
If the BAE Systems share price is 1,850 GBp (about £18.50), you can buy around 54 shares with a £1,000 stake, including a typical brokerage fee of about £5.
If the share price rises by 10%, your shares are now worth £1,100.
Result: +£100 gross gain, or +10% on your investment.
Trading via CFD
CFD trading on BAE Systems lets you speculate on price movements without actual share ownership. This approach enables leveraged trading—meaning greater market exposure with a smaller initial outlay. CFD trading involves fees such as the spread (the difference between buy and sell prices) and potential overnight financing charges if holding positions open beyond a day.
Gain scenario
You open a CFD position on BAE Systems shares with £1,000 and use 5x leverage. This gives you a market exposure of £5,000.
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +£400 gain on an initial £1,000 (excluding spreads and interest).
Final advice
It’s crucial to compare broker fees, trading conditions, and platform reliability before investing—our comprehensive broker comparison below will help you make an informed choice. Ultimately, whether you prefer direct share ownership or CFD trading depends on your individual objectives and risk tolerance.
Compare the best brokers in the UK!Compare brokersOur 7 tips for buying BAE Systems stock
| 📊 Step | 📝 Specific tip for BAE Systems |
|---|---|
| Analyze the market | Examine global defence spending trends and the impact of geopolitical events on BAE Systems’ order book. |
| Choose the right trading platform | Use an FCA-authorised broker with access to the London Stock Exchange for direct BAE Systems share trading. |
| Define your investment budget | Assess your risk appetite and allocate a budget mindful of BAE Systems’ large-cap status and sector resilience. |
| Choose a strategy (short or long term) | Favour a long-term strategy to benefit from BAE Systems’ robust order backlog and international expansion. |
| Monitor news and financial results | Track quarterly earnings, contract wins, and defence policy updates, which often drive BAE Systems’ share price. |
| Use risk management tools | Set stop-loss and take-profit orders to protect gains and limit downside in case of market volatility. |
| Sell at the right time | Consider selling after strong share price rallies or when BAE Systems secures major new contracts, to lock in profits. |
The latest news about BAE Systems
BAE Systems maintained stable share price performance this week, with intraday gains and trading near 52-week highs. The stock closed at 1,851.50 pence on 3 July 2025, marking a minor positive change of 0.11% intraday despite a slight weekly dip, consistently reflecting solid demand from UK investors as the company continues to secure strong domestic and international defence contracts.
BAE Systems secured more than £5.7 billion in new Ministry of Defence contracts in 2024, reinforcing UK leadership. This substantial order intake highlights strong government trust and underpins BAE Systems’ position as the UK’s leading defence supplier, promising further revenue stability and sectoral support that resonates positively with the British investment community.
Technicals indicate robust long-term momentum despite short-term signals suggesting a neutral to bearish stance. Current indicators show the stock trading just below its 20, 50, and 200-day moving averages, but the long-term trend is up more than 60% over six months. This suggests that recent consolidation may offer attractive entry points for UK analysts focused on sustainable growth.
BAE Systems’ operational headquarters and extensive workforce in the UK emphasise its domestic economic contribution. With over 107,000 employees and its headquarters in Camberley, the company’s local footprint supports skilled jobs and innovation, drawing favourable attention from regional policymakers and institutional investors within the United Kingdom.
Ongoing eligibility for ISAs ensures BAE Systems remains highly accessible to UK retail investors seeking diversified exposure. BAE Systems’ shares are eligible for investment within Individual Savings Accounts, making them tax-efficient holdings for British investors looking to participate in the country’s leading defence growth story.
FAQ
What is the latest dividend for BAE Systems stock?
BAE Systems pays a dividend, with the latest annual amount of 0.33 pence per share. The last ex-dividend date was 17 April 2025. Historically, the company has maintained a progressive dividend policy, supported by robust earnings and a healthy order book.
What is the forecast for BAE Systems stock in 2025, 2026, and 2027?
With the current price at 1,851.50 pence, projected values are 2,407 pence for end 2025, 2,777 pence for end 2026, and 3,703 pence for end 2027. These outlooks reflect BAE Systems' strong fundamentals, momentum from global defence spending, and ongoing sector demand.
Should I sell my BAE Systems shares?
Holding BAE Systems shares remains justifiable, given the company's strong strategic position in defence and aerospace. Solid financials, a multi-year contract backlog, and resilient sector demand support its long-term value. These factors make it sensible to consider staying invested for growth and income potential.
Are BAE Systems shares eligible for ISAs in the UK and what are the tax implications?
BAE Systems shares are eligible for Individual Savings Accounts (ISAs) in the UK, so dividends and capital gains can be received tax-free within the annual ISA limit. For investments held outside an ISA, UK residents may be subject to income tax on dividends and capital gains tax, subject to personal allowances and current HMRC thresholds.
What is the latest dividend for BAE Systems stock?
BAE Systems pays a dividend, with the latest annual amount of 0.33 pence per share. The last ex-dividend date was 17 April 2025. Historically, the company has maintained a progressive dividend policy, supported by robust earnings and a healthy order book.
What is the forecast for BAE Systems stock in 2025, 2026, and 2027?
With the current price at 1,851.50 pence, projected values are 2,407 pence for end 2025, 2,777 pence for end 2026, and 3,703 pence for end 2027. These outlooks reflect BAE Systems' strong fundamentals, momentum from global defence spending, and ongoing sector demand.
Should I sell my BAE Systems shares?
Holding BAE Systems shares remains justifiable, given the company's strong strategic position in defence and aerospace. Solid financials, a multi-year contract backlog, and resilient sector demand support its long-term value. These factors make it sensible to consider staying invested for growth and income potential.
Are BAE Systems shares eligible for ISAs in the UK and what are the tax implications?
BAE Systems shares are eligible for Individual Savings Accounts (ISAs) in the UK, so dividends and capital gains can be received tax-free within the annual ISA limit. For investments held outside an ISA, UK residents may be subject to income tax on dividends and capital gains tax, subject to personal allowances and current HMRC thresholds.
