Wed, 18 Feb 2026

Wed, 18 Feb 2026 Defence giant BAE hails record sales as workers remain on strike

Defence company BAE has increased payouts to investors after its sales increased but staff in Lancashire have walked out over stalled pay talks
BAE Systems, Europe's largest defence contractor, has reported record-breaking results for 2025 with £2.6bn in profits and sales of £30.7bn. The company's chief executive, Charles Woodburn, attributed the success to increased government spending on defence contracts due to rising geopolitical tensions. However, thousands of BAE employees at two sites in Lancashire are currently striking over pay, calling for higher wages after receiving below-inflation increases last year. Unite, a major union representing 5,000 workers at the sites, has labelled the company's £2.6bn profit "obscene" and vowed to continue strike action until a better offer is made. The union claims that staff are crucial to BAE's success and deserve fair pay for their contributions. Meanwhile, BAE maintains that its current offer of 3.7% raises for 2026 is fair and reflects market-leading pay rates. BAE Systems expects profits to rise by around 10% in 2026, driven by continued growth in government defence spending. The company's record order backlog has been highlighted as a key factor in its success, with sales rising by 10% to a record £30.7bn. Unite's general secretary, Sharon Graham, expressed disappointment that the company is prioritising profits over staff pay and conditions. "BAE's profits are little short of obscene," she said. "The company is making billions from government contracts and yet refuses to pay our members what they are worth."
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