BAE Systems has projected several years of sustained growth, declaring the emergence of a “new era” in global defence spending as its order backlog reached a record high.

The British defence contractor reported that rising geopolitical tensions and increased military budgets across Europe, the United States and parts of Asia have significantly strengthened demand for its products and services.

The company said its order book has climbed to an all-time peak, providing long-term visibility over revenues and reinforcing expectations of steady expansion.

Executives pointed to continued investment in air, maritime and land systems, as well as advanced technologies such as cyber security, electronic warfare and next-generation combat aircraft.

Demand for munitions and naval platforms has also intensified, reflecting governments’ efforts to replenish stockpiles and modernise armed forces amid prolonged security challenges.

BAE Systems indicated that recent contract wins and framework agreements across multiple allied nations underpin its confidence in medium-term performance.

The company has benefited from increased defence allocations following commitments by NATO members to strengthen collective security, alongside parallel spending initiatives in the Indo-Pacific.

Management emphasised that elevated defence budgets are not expected to be a short-term phenomenon.

Instead, they described structural shifts in the security environment that are likely to sustain higher procurement levels for years.

The scale of the company’s current backlog, executives said, provides resilience against near-term economic fluctuations and supports ongoing investment in research, manufacturing capacity and workforce expansion.

The upbeat forecast comes as European governments accelerate procurement programmes in response to continuing instability in Eastern Europe and heightened strategic competition globally.

Analysts note that major defence contractors, including BAE Systems, are positioned to benefit from multi-year equipment modernisation cycles as states commit to long-term security spending.

Shares in the company have reflected investor confidence in the sector’s prospects, as markets increasingly view defence as a structural growth industry amid shifting geopolitical realities.