BAE Systems, the London-listed defence giant, has projected over £30bn in sales for 2025 as governments worldwide are urged to increase military spending.
The company anticipates a seven to nine per cent rise in sales from an annual total of £28.3bn in 2024, as reported by .
Underlying pre-tax earnings are also predicted to grow by eight to ten per cent from just over £3bn.
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This news follows a surge in European defence stocks to record highs after Ukraine and its European allies were excluded from peace talks between the US and Russia.
Analysts predict a significant increase in spending from NATO members as they deal with the unpredictability of a Trump White House.
In its full-year results, BAE reported that its record order backlog had grown by an additional £8bn to £77.8bn in the year ending 31 December.
Underlying earnings per share increased by 10 per cent to 68.5p, alongside a 14 per cent growth in sales. The firm also made a neat £75m profit from selling part of its stake in Air Astana, which listed on the London Stock Exchange last February.
On Wednesday, BAE announced a 10 per cent dividend increase to 33p per share.
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"The results we're reporting today reflect the outstanding efforts of our employees and continue our track record of strong top-line and earnings growth, free cash flow and orders," said Chief Executive Charles Woodburn.
"We're supporting our customers around the world, while shaping our portfolio towards higher growth and strategically important markets.
"Across our business, we're also investing in our people, facilities and technologies to drive efficiencies, boost capacity and increase our agility to deliver in a rapidly evolving environment."
He further stated: "Based on the exceptional visibility of our record order backlog and sustainability of our value-compounding business model, we remain confident in the positive momentum of our business into the future."