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The Finance Base
BAE Systems

BAE Systems’ Cyber & Intelligence Business Grows as Group Raises 2026 Profit Guidance

BAE Systems’ Cyber & Intelligence segment grew in 2025. Its later 2026 forecast upgrade covers the Group, not the segment alone.

By TheFinanceBase Team 3 min read
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BAE Systems reported 2025 growth in its Cyber & Intelligence business, with sales of £2,397 million and underlying EBIT of £223 million. Separately, after reporting higher Group sales and underlying EBIT for the first half of 2026, the company raised its full-year Group underlying EBIT growth guidance to 10–12%. That updated forecast applies to BAE Systems as a whole, not specifically to Cyber & Intelligence.

How BAE Systems’ Cyber & Intelligence business performed in 2025

BAE Systems’ Cyber & Intelligence segment comprises its US-based Intelligence & Security business and UK-headquartered Digital Intelligence business. The company says the segment provides cyber security activities for national security, central government and government enterprises.

For the year ended 31 December 2025, BAE reported £2,397 million in segment sales and £223 million in underlying earnings before interest and tax (EBIT). On a constant-currency basis, sales grew 2% and underlying EBIT grew 15%. The segment’s return on sales was 9.3%; order intake was £2.7 billion and its order backlog was £2.1 billion. BAE’s reported order figures include the Group’s share of equity-accounted investments.

The company said sales growth was predominantly related to counter-uncrewed aircraft system (counter-UAS) sales in Digital Intelligence, following its acquisition of Kirintec in the prior year. BAE describes Kirintec as specializing in cyber and electromagnetic activities, counter-improvised explosive devices and counter-UAS products for military customers. This explanation concerns the reported segment sales increase; it does not establish that every part of the segment grew.

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Underlying EBIT and IFRS operating profit are different measures

BAE labels underlying financial measures as alternative performance measures that are not defined by IFRS. For Cyber & Intelligence in 2025, the company reported £223 million of underlying EBIT and £182 million of IFRS operating profit. Both figures describe profit, but they use different definitions and should not be treated as interchangeable. Segment sales and IFRS revenue were each £2,397 million.

The segment’s 2% sales growth and 15% underlying EBIT growth are constant-currency comparisons, not reported-currency growth rates. BAE’s [2025 preliminary results announcement](https://www.baesystems.com/dam/jcr%3A430d3195-c990-4bd5-ac85-ec5588380dbf), published on 18 February 2026, provides the segment figures and metric definitions.

What BAE Systems raised in its 2026 forecast

In its half-year results published on 30 July 2026, BAE reported first-half Group sales growth of 9% and underlying EBIT growth of 11%. Its Group order backlog reached a record £84.0 billion at 30 June 2026. The company cited strong first-half operational performance as the reason for upgrading its full-year outlook.

The revisions are Group guidance for 2026, not a Cyber & Intelligence-specific forecast:

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Group measure Previous guidance Updated guidance or target
Sales growth 7–9% 8–10%
Underlying EBIT growth 9–11% 10–12%
Underlying EPS growth 9–11% 11–13%
Free cash flow Above £1.3 billion Above £2.0 billion

BAE states that the growth guidance is on a constant-currency basis and uses an exchange rate of $1.32 to £1. The prior-year Group baselines were 2025 sales of £30,662 million, underlying EBIT of £3,322 million and underlying earnings per share (EPS) of 75.2 pence.

The company’s [2026 half-year results](https://www.baesystems.com/en-sa/article/2026-half-year-results) give the first-half Group results and revised outlook. They do not state Cyber & Intelligence’s first-half sales or underlying EBIT, so the Group growth rates cannot be used to infer that segment’s interim performance.

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What the results do—and do not—show

The reported figures show that Cyber & Intelligence grew in 2025, with BAE attributing most of its segment sales growth to counter-UAS activity in Digital Intelligence. The later forecast increase reflects BAE’s assessment of Group-wide performance in the first half of 2026. It is not evidence of a new segment-level forecast or of continued growth in every Cyber & Intelligence business.

In the 2025 full-year results release, Chief Executive Charles Woodburn said: “Our results highlight another year of strong operational and financial performance, thanks to the outstanding dedication of our employees.” He also said the company was confident in its ability to keep delivering growth, citing its record order backlog and investment in agility, efficiency and capacity. These are management’s comments and outlook, rather than independent confirmation of future performance. BAE’s [2025 full-year results](https://careers.baesystems.com/article/2025-full-year-results) provide the Group baseline and quotations.

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