Revenue distribution by sectors:

• Defense: 70%
• Aerospace: 20%
• Electronics and Cybersecurity: 10%

TOP 3 markets and their percentage shares:

• United States: 45%
• United Kingdom: 25%
• Saudi Arabia: 15%

BAE Systems plc generates the majority of its revenue from the defense sector, followed by aerospace and electronics and cybersecurity. The United States is the company's largest market, attributed to extensive defense contracts and partnerships. The United Kingdom and Saudi Arabia follow as important markets, with both countries making significant investments in defense technologies.

Production sites of BAE Systems:

• United Kingdom: Headquarters and several production facilities, especially for marine and aviation technology.
• United States: Numerous locations, primarily for defense electronics and land vehicles.
• Australia: Production and maintenance facilities, especially for the Australian defense industry.
• Saudi Arabia: Collaborations and joint ventures to support local defense projects.
• India: Participation in joint ventures and partnerships for the production and maintenance of defense systems.

BAE Systems plc is a globally active defense and security company with production sites in several countries. The strategic distribution of production sites enables the company to respond to local market requirements and maintain international partnerships. This is particularly important in the defense industry, where national security interests play a significant role.

Revenue Growth: Estimated 6-8% annually (2025-2028)

Focus on Defense Technology: BAE Systems plc is increasingly focusing on the development and deployment of advanced defense technologies, including cybersecurity, autonomous systems, and artificial intelligence. These technologies are crucial to meet the requirements of modern armed forces and to tap into new market opportunities.

International Expansion: The company plans to expand its presence in international markets, particularly in regions with growing defense budgets such as Asia and the Middle East. Through strategic partnerships and joint ventures, BAE Systems aims to increase its market share in these areas.

Sustainability and Innovation: BAE Systems is investing in sustainable technologies and processes to reduce its ecological footprint. At the same time, investments are being made in research and development to provide innovative solutions that meet the changing demands of the global defense industry.

These strategic initiatives are intended to secure the growth of BAE Systems in the coming years and position the company as a leading provider in the global defense industry.

Main raw materials: Aluminum, steel, titanium, electronic components

Countries of origin:

• Aluminum: Canada, Russia
• Steel: Germany, China
• Titanium: USA, Russia
• Electronic components: Taiwan, South Korea, Japan

BAE Systems plc is a leading company in the defense and aerospace industry and requires a variety of raw materials and materials for the production of its products. Aluminum and steel are essential materials for the production of aircraft and other defense systems. These metals are mainly imported from Canada, Russia, Germany, and China, as these countries are among the largest producers worldwide.

Titanium is another critical material valued in the aerospace industry for its strength and corrosion resistance. The USA and Russia are important suppliers of titanium.

Electronic components are essential for BAE Systems' advanced systems and technologies. These are mainly sourced from Asian countries such as Taiwan, South Korea, and Japan, known for their highly developed electronics industry.

The procurement of these materials is crucial for BAE Systems' production capacities and competitiveness in the global market.

Market share in the defense sector: Approx. 10% (2024, estimation) R&D expenditure: 1.5 billion GBP (2024) Contract backlog: 60 billion GBP (2024)

BAE Systems plc has a significant competitive advantage in the global defense sector. The company benefits from a strong market share and an extensive contract backlog that ensures a stable revenue base.

The high expenditures on research and development enable BAE Systems to develop innovative technologies and differentiate itself from competitors. Additionally, the company has strategic partnerships and long-term contracts with governments worldwide, further strengthening its market position.

In summary, BAE Systems offers a solid competitive advantage in the defense sector through its technological leadership, financial stability, and established customer relationships.

Institutional investor share: approx. 70% (2025, estimated based on historical data)

Insider purchases/sales: No significant transactions in the last year (2025)

The institutional investor share in BAE Systems plc traditionally stands at around 70%, indicating the trust of large investment funds and institutional investors in the company's stability and growth potential.

In 2025, there were no significant insider transactions, pointing to a stable confidence of the management in the current company strategy and performance. Such transactions are often seen as an indicator of the management's future expectations.

Market share of BAE Systems plc: 8% (estimated for 2025 in the global defense sector)

Top competitors and their estimated market shares:

1. Lockheed Martin - 12%
2. Raytheon Technologies - 10%
3. Northrop Grumman - 9%
4. Boeing Defense, Space & Security - 8%
5. BAE Systems - 8%
6. General Dynamics - 7%
7. Thales Group - 6%
8. Leonardo S.p.A. - 5%
9. Airbus Defence and Space - 4%
10. L3Harris Technologies - 3%

Moat of BAE Systems:

BAE Systems has a significant moat, which consists of several factors. These include long-term contracts with governments, especially in the UK and the USA, as well as a strong presence in aerospace technology. The company benefits from high barriers to entry in the defense sector, arising from regulatory requirements and the need for trust and reliability in military applications.

Compared to its competitors, BAE Systems has a solid, but not necessarily superior moat. Lockheed Martin and Raytheon Technologies may have stronger positions due to their larger market shares and broader product portfolios. Nevertheless, BAE Systems remains a significant player with stable revenue sources and a strong market position in Europe.

Revenue Growth: 8% (2024)

Order Backlog: £58 billion (2024)

Research & Development: £1.5 billion (2024)

BAE Systems plc recorded a revenue growth of 8% in 2024, attributed to strong demand for defense and security technologies. The company's order backlog amounts to £58 billion, providing a solid foundation for future revenues.

The company continuously invests in research and development, with expenditures of £1.5 billion in 2024. These investments are crucial for developing new technologies and strengthening BAE Systems' competitive position.

Overall, the strong financial performance and robust order backlog indicate that BAE Systems is well positioned to benefit from sustained global defense spending. This could make the stock an attractive investment, especially for investors looking to invest in the defense sector.

Dividend yield: 3.8% (estimated for 2025)
Dividend history: Continuous payout over the last 5 years

BAE Systems plc has pursued a consistent dividend policy in recent years. The dividend yield for 2025 is estimated at 3.8%, which is competitive compared to other companies in the defense and aerospace industry.

The company has a solid financial position and demonstrates strong operational performance, supporting the reliability of dividend payments. Historically, BAE Systems has consistently distributed its dividends, indicating stable earnings power and a sustainable business model. Analysts expect the company to continue to pay dividends at a similar level in the future.