BAE Systems plc is a British multinational aerospace, arms and information security company, based in London.[5][6] It is the largest manufacturer in Britain as of 2017.[7] It is the largest defence contractor in Europe[8] and the sixth largest in the world based on applicable 2024 revenues.[9] Its largest operations are in the United Kingdom and in the United States, where its BAE Systems Inc. subsidiary is one of the six largest suppliers to the US Department of Defense. Its next biggest markets are Saudi Arabia, then Australia; other major markets include Canada, Japan,[10][11] India, Turkey, Qatar, Oman and Sweden. The company was formed on 30 November 1999 by the £7.7billion purchase of and merger of Marconi Electronic Systems (MES), the defence electronics and naval shipbuilding subsidiary of the General Electric Company plc (GEC), with British Aerospace, an aircraft, munitions and naval systems manufacturer.
BAE Systems is the successor to various aircraft, shipbuilding, armoured vehicle, armaments and defence electronics companies, including the Marconi Company, the first commercial company devoted to the development and use of radio; A.V. Roe and Company, one of the world's first aircraft companies; de Havilland, manufacturer of the Comet, the world's first commercial jet airliner; Hawker Siddeley, manufacturer of the Harrier, the world's first VTOL attack aircraft; British Aircraft Corporation, co-manufacturer of the Concorde supersonic transport; Supermarine, manufacturer of the Spitfire; Yarrow Shipbuilders, builder of the Royal Navy's first destroyers; Fairfield Shipbuilding and Engineering Company, builder of the world's first battlecruiser; and Vickers Shipbuilding and Engineering, builder of the Royal Navy's first submarines.
Since its 1999 formation, BAE Systems has made a number of acquisitions, most notably of Ball Aerospace, United Defense and Armor Holdings of the United States, and has sold its shares in Airbus, Astrium, AMS and Atlas Elektronik. It is involved in several major defence projects, including the Lockheed Martin F-35 Lightning II, the Eurofighter Typhoon, and the Astute, Dreadnought and SSN-AUKUS submarines. BAE is listed on the London Stock Exchange's FTSE 100 Index.
History
Predecessors
British Aerospace bought Marconi Electronic Systems for £7.7billion on 30 November 1999 and merged with it to form BAE Systems.[12] The company is the successor to many of the most famous British aircraft, defence electronics and warship manufacturers. Predecessor companies built the Comet, the world's first commercial jet airliner; the Harrier "jump jet", the world's first operational vertical/short take-off and landing (VTOL) aircraft; the "groundbreaking"[13] Blue Vixen radar carried by Sea Harrier FA2s and which formed the basis of the Eurofighter's CAPTOR radar; and co-produced the Concorde supersonic airliner with Aérospatiale.[14]
Products
BAE Systems plays a significant role in the production of military equipment. In 2017, 98% of BAE Systems' total sales were military related.[121][122]
It plays important roles in military aircraft production. The company's Typhoon fighter is one of the main front line aircraft of the RAF.[123] The company is a major partner in the Lockheed Martin F-35 Lightning II programme and part of the international supply chain for the aircraft.[124] In 2025, reporting on a High Court challenge to the UK government’s export licensing policy stated that the United Kingdom supplies around 15 per cent of the value of each F-35 aircraft, mainly through BAE Systems, and that the government maintained an exemption for F-35 components when it suspended some arms export licences relating to Israel in 2024.[125]In June 2025, a High Court ruling found that the government’s decision to allow continued exports of F-35 components was lawful, with the judges stating that the matter was one for the executive and Parliament rather than the courts.
Areas of business
BAE Systems' biggest markets are the US 44%, UK 20%, Saudi Arabia 11% and Australia 4%, as of 2022.
United Kingdom
BAE Systems is the main supplier to the UK MoD; in 2009/2010 BAE Systems companies in the list of Top 100 suppliers to the MoD received contracts totalling £3.98billion, with total revenue being higher when other subsidiary income is included.[135] In comparison, the second largest supplier is Babcock International Group and its subsidiaries, with a revenue of £1.1billion from the MoD. Oxford Economic Forecasting states that in 2002 the company's UK businesses employed 111,578 people, achieved export sales of £3billion and paid £2.6billion in taxes. These figures exclude the contribution of Airbus UK.[136]
After its creation, BAE Systems had a difficult relationship with the MoD. This was attributed to deficient project management by the company, but also in part to the deficiencies in the terms of "fixed price contracts". CEO Mike Turner said in 2006 "We had entered into contracts under the old competition rules that frankly we shouldn't have taken".[137]
Shareholders
BAE Systems' 2022 Annual Report listed the following as "significant" shareholders: Barclays 3.98%, BlackRock 9.90%, Capital Group Companies 14.18%, Invesco 4.97% and Silchester International Investors 3.01%.
Organisation
BAE Systems has its head office and its registered office in City of Westminster, London.[157][158] In addition to its central London offices, it has an office in Farnborough, Hampshire, that houses functional specialists and support functions.[159]
Corporate governance
BAE Systems' Chair is Cressida Hogg. As of July 2025, the executive directors are Charles Woodburn (CEO), Brad Greve and Tom Arsenault. The non-executive directors are Crystal E. Ashby, Elizabeth Corley, Angus Cockburn, Ewan Kirk, Ian Tyler, Nicole Piasecki, Stephen Pearce, Jane Griffiths and Nick Anderson.[160]
The company's first CEO, John Weston, was forced to resign in 2002 in a boardroom "coup" and was replaced by Mike Turner.[161] The Business reported that Weston was ousted when non-executive directors informed the chairman that they had lost confidence in him. Further, it was suggested that at least one non-executive director was encouraged to make such a move by the MoD due to the increasingly fractious relationship between BAE Systems and the government.[162] As well as the terms of the Nimrod contract, Weston had fought against the MOD's insistence that one of the first three Type 45 destroyers should be built by VT Group. The Business said he considered this "competition-policy gone mad".[163]
Financial information
Financial information for the company is as follows:[169][85][170][171][172][173][174]
Corruption investigations
Serious Fraud Office
BAE Systems has been investigated by the Serious Fraud Office (SFO) for the use of corruption to help sell arms to Chile, Czech Republic, Romania, Saudi Arabia, South Africa, Tanzania and Qatar.[175][176][177] In response, BAE Systems' 2006 Corporate Responsibility Report states "We continue to reject these allegations... We take our obligations under the law extremely seriously and will continue to comply with all legal requirements around the world.[178] In June 2007 Lord Woolf was selected to lead what the BBC described as an "independent review.... [an] ethics committee to look into how the defence giant conducts its arms deals".[179]
Criticism
Espionage
In September 2003, The Sunday Times reported that BAE Systems had hired a private security contractor to collect information about individuals working at CAAT and their activities.[214][215] In February 2007, it was reported that the corporation had again obtained private confidential information from CAAT.[216]
The company was reported in 2012 to have been the target of Chinese cyber espionage that may have stolen secrets related to the F-35 Lightning II.[217]
In 2020, former employee Simon Finch, who became disillusioned when his reports of homophobic attacks in 2013 were not investigated properly, was convicted of a breach of the Official Secrets Act, after "recording from memory highly sensitive details of a UK missile system."
See also
- Aerospace industry in the United Kingdom
- Espionage
- Counterespionage
Further reading
- Hartley, Keith. The Political Economy of Aerospace Industries: A Key Driver of Growth and International Competitiveness? (Edward Elgar, 2014); 288 pages; the industry in Britain, continental Europe, and the US with a case study of BAE Systems.
External links
References
- BAE Systems PLC overview – Find and update company information – GOV.UK Companies House, 31 December 1979, retrieved 11 February 2024^
- Main page BAe Systems, retrieved 27 January 2026^
- Annual Report 2025 BAE Systems, retrieved 18 February 2026