- BAE Systems (OTC:BAESF) reported earnings with an EPS of $0.52, slightly below estimates but showed a 3.6% rise in share price due to investor confidence.
- The company’s revenue was $21.64 billion, with a year-on-year sales increase of 10%, driven by significant defense contracts.
- Financial health indicators such as a P/E ratio of 31.54 and a debt-to-equity ratio of 0.87 reflect a balanced approach to financing and growth.
BAE Systems, trading as BAESF on the OTC exchange, is a major player in the defense industry. The company is known for manufacturing military equipment such as aircraft, weapons, munitions, and warships. It competes with other defense giants like Lockheed Martin and Northrop Grumman. BAE Systems is listed on the FTSE 100 and has a significant presence in the global defense market.
On February 18, 2026, BAESF reported its earnings before the market opened. The company achieved an earnings per share (EPS) of $0.52, slightly below the estimated EPS of $0.54. Despite this, BAE Systems’ shares rose by 3.6% on the same day, as highlighted by the release of its full-year earnings report. This indicates investor confidence in the company’s long-term growth prospects.
BAESF’s actual revenue was approximately $21.64 billion, falling short of the estimated $21.77 billion. However, the company’s full-year results for 2025 showed a 10% increase in sales, reaching a record £30.7 billion ($41.7 billion). This growth is driven by significant defense contracts with countries like Norway, the U.S., and Turkey, as highlighted by CEO Charles Woodburn.
The company’s financial metrics provide insight into its valuation and financial health. BAESF has a price-to-earnings (P/E) ratio of approximately 31.54, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 2.19, suggesting the company’s market value relative to its sales. Additionally, the enterprise value to sales ratio is around 2.46, reflecting the company’s total value compared to its sales.
BAE Systems’ order backlog has reached £83.6 billion, marking a £5.8 billion increase from 2024. The company anticipates sales growth of 7% to 9% in 2026, with projected cumulative free cash flow exceeding £6 billion between 2026 and 2028. This outlook, combined with a debt-to-equity ratio of approximately 0.87, suggests a balanced approach to financing its growth and operations.
