View source for BAE Systems

{{Short description|British defence, security and aerospace company}}
{{Redirect|BAE||BAE (disambiguation)}}
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{{Use dmy dates|date=June 2024}}
{{Use British English|date=June 2018}}
{{Infobox company
 |name= BAE Systems plc
 |logo= BAE Systems logo.svg
 |logo_size= 250px
 |image=
 |image_size=
 |image_alt=
 |image_caption=
 |former_name= {{Ubl
 |British Aerospace Limited (1979{{endash}}1981)
 |British Aerospace Public Limited Company (1981{{endash}}2000)<ref name="CompaniesHouse">{{Cite web |date=1979-12-31 |title=BAE Systems PLC overview - Find and update company information - GOV.UK |url=https://find-and-update.company-information.service.gov.uk/company/01470151 |access-date=2024-02-11 |website=[[Companies House]] |language=en}}</ref>
}}
 |type= [[Public limited company|Public]]
 |traded_as= {{lse|BA.}} <br>[[FTSE 100 Index|FTSE 100 Component]]
 |predecessors= {{ubl|[[British Aerospace]] |[[Marconi Electronic Systems]]}}
 |foundation= {{start date and age|1999|11|30|df=yes}}
 |location= [[London]], England, UK
 |area_served= Worldwide
 |key_people= {{ubl|[[Cressida Hogg]] (Chair)|[[Charles Woodburn]] (CEO)}}
 |industry= [[Aerospace industry|Aerospace]], [[Arms industry|defence]] and [[information security]]
 |revenue= {{increase}} {{GBP|23.078&nbsp;billion}}
 |revenue_year= 2023
 |operating_income= {{increase}} {{GBP|2.573&nbsp;billion}}
 |income_year= 2023
 |net_income= {{increase}} {{GBP|1.940&nbsp;billion}}
 |net_income_year= 2023
 |assets= {{increase}} {{GBP|32.064&nbsp;billion}}
 |assets_year= 2023
 |equity= {{decrease}} {{GBP|10.723&nbsp;billion}}
 |equity_year= 2023
 |num_employees= 93,000
 |num_employees_year= 2024
 |divisions= [[#Organisation|See below]]
 |subsid= {{ubl|[[BAE Systems Inc.]] |[[BAE Systems Australia]] |[[BAE Systems Digital Intelligence]]}}
 |homepage= {{URL|https://baesystems.com}}
 |footnotes= <ref name=2022_Annl_Report>{{cite web |title=Annual Report 2023 BAE Systems plc |url=https://investors.baesystems.com/~/media/Files/B/BAE-Systems-Investor/documents/2023-full-year-results-announcement.pdf |publisher=BAE Systems |access-date=21 February 2024}}</ref><ref>{{cite web|url=https://www.baesystems.com/en-uk/our-company/about-us/where-we-operate|title=Where we operate|publisher=BAe Systems|access-date=21 February 2024}}</ref>
}}

'''BAE Systems plc''' is a British [[Multinational corporation|multinational]] [[Aerospace industry|aerospace]], [[Arms industry|defence]] and [[information security]] company, based in [[London]], England.<ref>{{Cite web|url=https://www.baesystems.com/en-uk/company-information|title=Company Information|website=BAE Systems {{pipe}} United Kingdom}}</ref><ref>{{Cite web|url=https://find-and-update.company-information.service.gov.uk/company/01470151|title=BAE Systems plc - Overview (free company information from Companies House)|website=find-and-update.company-information.service.gov.uk}}</ref> It is the largest manufacturer in Britain as of 2017.<ref name="veconomist">{{cite news|title=BAE Systems sheds 2,000 jobs in Britain|url=https://www.economist.com/news/britain/21730208-defence-giant-poised-take-advantage-global-rise-military-spending-bae|newspaper=[[The Economist]]|date=12 October 2017|access-date=13 October 2017|archive-url=https://web.archive.org/web/20171013120231/https://www.economist.com/news/britain/21730208-defence-giant-poised-take-advantage-global-rise-military-spending-bae |archive-date=13 October 2017|url-status=live}}</ref> It is the largest defence contractor in Europe<ref>{{cite web |author=Defence IQ Press 06/12/2013 |url=https://www.defenceiq.com/air-land-and-sea-defence-services/articles/top-10-defence-companies-bae-systems-3 |title=Top 10 Defence Companies: BAE Systems #3 |date=12 June 2013 |publisher=Defence IQ |access-date=2019-03-02 |archive-url=https://web.archive.org/web/20181010213657/https://www.defenceiq.com/air-land-and-sea-defence-services/articles/top-10-defence-companies-bae-systems-3 |archive-date=10 October 2018 |url-status=live}}</ref> and the seventh-largest in the world based on applicable 2021 revenues.<ref>{{cite web |url=https://people.defensenews.com/top-100/ |title=Top 100 for 2021 |website=[[Defense News]] |accessdate=23 January 2022}}</ref> 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 [[United States Department of Defense|US Department of Defense]]. Its next biggest markets are Saudi Arabia, then Australia; other major markets include Canada, Japan,<ref>{{Cite web |title=BAEシステムズジャパン正式発足、戦略市場として体制強化 |url=https://www.jwing.net/news/50599|access-date=Nov 4, 2022 |language=ja |url-status=dead |archive-url= https://web.archive.org/web/20221104001909/https://www.jwing.net/news/50599 |archive-date=4 November 2022}}</ref><ref>{{Cite web |title=黒船来る? 英巨大企業BAEシステムズ日本法人設立 国や日本企業が期待を抱く切実理由 |date=17 November 2021 |url=https://merkmal-biz.jp/post/4716|access-date=Nov 4, 2022 |language=ja}}</ref> India, Turkey, Qatar, Oman and Sweden.<ref name=2022_Annl_Report/> The company was formed on 30 November 1999 by the [[British pound sterling|£]]7.7&nbsp;billion 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; [[Avro|A.V. Roe and Company]], one of the world's first aircraft companies; [[de Havilland]], manufacturer of the [[de Havilland Comet|Comet]], the world's first commercial jet airliner; [[Hawker Siddeley]], manufacturer of the [[Harrier jump jet|Harrier]], the world's first VTOL attack aircraft; [[British Aircraft Corporation]], co-manufacturer of the [[Concorde]] supersonic transport; [[Supermarine]], manufacturer of the [[Supermarine Spitfire|Spitfire]]; [[Yarrow Shipbuilders]], builder of the [[Royal Navy]]'s [[Havock class destroyer|first destroyers]]; [[Fairfield Shipbuilding and Engineering Company]], builder of the world's first [[Invincible-class battlecruiser|battlecruiser]]; and [[Vickers Shipbuilding and Engineering]], builder of the Royal Navy's first [[Holland class submarine|submarines]].

Since its 1999 formation, BAE Systems has made a number of acquisitions, most notably of [[United Defense]] and [[Armor Holdings]] of the United States, and has sold its shares in [[Airbus]], [[Astrium]], [[Alenia Marconi Systems|AMS]] and [[Atlas Elektronik]]. It is involved in several major defence projects, including the [[Lockheed Martin F-35 Lightning II]], the [[Eurofighter Typhoon]], the {{sclass|Astute|submarine}}, and the {{sclass|Queen Elizabeth|aircraft carrier}}s. BAE is listed on the [[London Stock Exchange]]'s [[FTSE 100 Index]].

==History==
===Predecessors===
[[File:Spitfire VII Langley USA.jpg|thumb|[[Supermarine]], the manufacturer of the [[Supermarine Spitfire|Spitfire]], was a predecessor company of BAE Systems. It was purchased by [[Vickers-Armstrongs]], which itself was merged into the [[British Aircraft Corporation]] in 1960.]]
[[British Aerospace]] bought [[Marconi Electronic Systems]] for £7.7&nbsp;billion on 30 November 1999 and merged with it to form BAE Systems.<ref name="scotsman2000">{{Cite news |first=Andrew|last=Turpin |title= BAE eyes US targets after profit rockets |work=The Scotsman |location=UK |publisher=The Scotsman Publications |page=26 |date= 4 March 2000}}</ref> The company is the successor to many of the most famous British aircraft, defence electronics and warship manufacturers. Predecessor companies built the [[de Havilland Comet|Comet]], the world's first commercial jet airliner; the [[Hawker Siddeley Harrier|Harrier]] "jump jet", the world's first operational [[V/STOL|vertical/short take-off and landing]] (VTOL) aircraft; the "groundbreaking"<ref>{{Cite news |first=James|last=Dow |title=Edinburgh's first line of defence |url=http://thescotsman.scotsman.com/business.cfm?id=840772004 |archive-url=https://web.archive.org/web/20040815131803/http://thescotsman.scotsman.com/business.cfm?id=840772004 |archive-date=15 August 2004|work=The Scotsman |location=UK |date=23 July 2004 |access-date=26 September 2007}}</ref> Blue Vixen radar carried by [[BAE Sea Harrier#Specifications (Sea Harrier FA.2)|Sea Harrier FA2s]] and which formed the basis of the Eurofighter's [[Euroradar CAPTOR|CAPTOR]] radar; and co-produced the [[Concorde]] supersonic airliner with [[Aérospatiale]].<ref>{{cite web|url=https://www.heritageconcorde.com/who-built-concorde|title=Who Built Concorde?|publisher=Heritage Concorde|access-date=25 February 2018|archive-url=https://web.archive.org/web/20180225211920/https://www.heritageconcorde.com/who-built-concorde|archive-date=25 February 2018|url-status=live}}</ref>

British Aerospace was a civil and [[military aircraft]] manufacturer, as well as a provider of military land systems. The company had emerged from the massive consolidation of UK aircraft manufacturers since World War II. British Aerospace was formed on 29 April 1977, by the nationalisation and merger of the [[British Aircraft Corporation]] (BAC), the [[Hawker Siddeley|Hawker Siddeley Group]] and [[Scottish Aviation]].<ref name="compcomm"/> Both BAC and Hawker Siddeley were themselves the result of various mergers and acquisitions.<ref name="lineage">{{cite web |url=http://production.investis.com/heritage/storage/lineage/?t=lineage |title=The BAE Systems Lineage |access-date=13 September 2007 |work=BAE Systems Heritage |publisher=BAE Systems plc |archive-url=https://web.archive.org/web/20080421093532/http://production.investis.com/heritage/storage/lineage/?t=lineage |archive-date=21 April 2008 |url-status=live}} (Click on Air tab.)</ref><!-- Citation based on "Air" section of this url, requires "Air" tab to be clicked, unfortunately no way of automating this in link -->

Marconi Electronic Systems was the defence subsidiary of British engineering firm the [[General Electric Company]] (GEC), dealing largely in military [[system integrator|systems integration]], as well as naval and land systems. Marconi's heritage dates back to [[Guglielmo Marconi]]'s Wireless Telegraph & Signal Company, founded in 1897.<ref>{{cite web |url=http://production.investis.com/heritage/nonflash/timeline/1874_guglielmo_marconi/ |archive-url=https://web.archive.org/web/20080421093519/http://production.investis.com/heritage/nonflash/timeline/1874_guglielmo_marconi/ |archive-date=21 April 2008 |title=1874 Guglielmo Marconi |access-date=13 September 2007 |work=BAE Systems Heritage |publisher=BAE Systems plc}}</ref> GEC purchased [[English Electric]] (which included Marconi) in 1968 and thereafter used the Marconi brand for its defence businesses (as GEC-Marconi and later Marconi Electronic Systems). GEC's own defence heritage dates back to World War I, when its contribution to the war effort included radios and bulbs. World War II consolidated this position, as the company was involved in important technological advances, notably the [[cavity magnetron]] for [[radar]].<ref>{{cite web |url=http://www.connected-earth.com/Galleries/Prideofownership/Economicfactors/Anewindustry/index.htm |title=A new industry |access-date=12 September 2007 |work=connected-earth.com |quote=during the Second World War it developed the cavity magnetron for radar |archive-url= https://web.archive.org/web/20070503152859/http://www.connected-earth.com/Galleries/Prideofownership/Economicfactors/Anewindustry/index.htm |archive-date= 3 May 2007}}</ref> Between 1945 and 1999, GEC-Marconi/Marconi Electronic Systems became one of the world's most important [[defence contractor]]s. GEC's major defence related acquisitions included [[Associated Electrical Industries]] in 1967,<ref name="cc">{{cite web |url=http://www.competition-commission.org.uk/rep_pub/reports/1989/fulltext/250c2.pdf |title=The companies involved, and the merger situations |access-date=13 September 2007 |year=1989 |publisher=Competition Commission|archive-url= https://web.archive.org/web/20070926044921/http://www.competition-commission.org.uk/rep_pub/reports/1989/fulltext/250c2.pdf |archive-date= 26 September 2007 |url-status= usurped}}</ref> [[Yarrow Shipbuilders Limited|Yarrow Shipbuilders]] in 1985,<ref name="cc"/> [[Plessey]] companies in 1989,<ref name="plesseyferranti">{{Cite news |first=Chris |last=Leadbeater |title=A marriage of convenience 'GEC and Siemens propose to create a major new European partnership. The acquisition of Plessey ... will be the springboard for further substantial expansion together.' |work=Financial Times |date=3 July 1990}}</ref> parts of [[Ferranti]]'s defence business in 1990,<ref name="plesseyferranti"/> the rump of Ferranti when it went into receivership in 1993/1994, [[Vickers Shipbuilding and Engineering]] in 1995<ref>{{Cite news |first=Roger |last=Cowe |title=Weinstock's £1bn finale |work=The Guardian |location=UK |publisher=Guardian Newspapers |date=4 July 1999}}</ref> and [[Kvaerner Govan|Kværner Govan]] in 1999.<ref>{{cite news |title=Deal reached on shipyard future |url=http://news.bbc.co.uk/1/hi/scotland/563784.stm |work=BBC News |date=14 December 1999 |access-date=13 September 2007}}</ref> In June 1998, MES acquired [[Tracor]], a major American defence contractor, for £830&nbsp;million (about US$1.4&nbsp;billion).<ref>{{Cite news |title= GEC Completes Tracor Acquisition|url= http://business.highbeam.com/436978/article-1G1-50118227/gec-completes-tracor-acquisition|archive-url= https://web.archive.org/web/20151017061110/http://business.highbeam.com/436978/article-1G1-50118227/gec-completes-tracor-acquisition|url-status= dead|archive-date= 17 October 2015|work= Defense Week|date= 29 June 1998|access-date= 29 June 2015}}</ref>

===Formation===
The 1997 merger of American corporations [[Boeing]] and [[McDonnell Douglas]], which followed the formation in 1995 of [[Lockheed Martin]], the world's largest defence contractor, increased the pressure on European defence companies to consolidate. In June 1997, British Aerospace Defence managing director [[John Weston (businessman)|John Weston]] commented "Europe&nbsp;... is supporting three times the number of contractors on less than half the budget of the U.S."<ref>{{Cite news |first=Andrea |last=Rothman |author2=Landberg, Reed |title=Europe Defense Firms Feel Pressure to Unite |url=https://archive.seattletimes.com/archive/19970615/2544541/europe-defense-firms-feel-pressure-to-unite |work=The Seattle Times |date=15 June 1997 |access-date=12 September 2007 |archive-url=https://web.archive.org/web/20110519105921/http://community.seattletimes.nwsource.com/archive/?date=19970615&slug=2544541 |archive-date=19 May 2011 |url-status=live}}</ref> European governments wished to see the merger of their defence manufacturers into a single entity, a "European Aerospace and Defence Company".<ref>{{cite news |title=Business: The Company Filed Defence merger on the radar |url=http://news.bbc.co.uk/1/hi/business/the_company_file/130305.stm |work=BBC News |date=10 July 1998 |access-date=15 September 2007 |archive-url=https://web.archive.org/web/20051124122609/http://news.bbc.co.uk/1/hi/business/the_company_file/130305.stm |archive-date=24 November 2005 |url-status=live}}</ref>

As early as 1995, British Aerospace and the German aerospace and defence company [[DaimlerChrysler Aerospace]] (DASA) were said to be keen to create a transnational aerospace and defence company.<ref>{{Cite news |first=Adam |last=Jones|title=Europe cries foul as New BAe emerges |work=The Times |location=UK |date=20 January 1999}}</ref> The two companies envisaged including Aérospatiale, the other major European aerospace company, but only after its privatisation.<ref>{{Cite news |first1=Pierre|last1=Sparaco|last2=Morrocco |first2=John D. |title=French Government Grapples With Aerospace Strategy |work=Aviation Week and Space Technology |publisher=McGraw-Hill |date=30 June 1997}}</ref> The first stage of this integration was seen as the transformation of Airbus from a consortium of British Aerospace, DASA, Aérospatiale and [[Construcciones Aeronáuticas|Construcciones Aeronáuticas SA]] into an integrated company; with this aim British Aerospace and DASA were united against the various objections of Aérospatiale.<ref name="BAeDASArelations">{{Cite news |first=Bernard |last=Gray |author2=Michael Skapinker |title=Giant waiting in the wings: Bernard Gray and Michael Skapinker ask if Europe's defence industry can consolidate in time to challenge US dominance |work=Financial Times|date=24 June 1997|author2-link=Michael Skapinker}}</ref> As well as Airbus, British Aerospace and DASA were partners in the [[Panavia Tornado]] and Eurofighter Typhoon aircraft projects. Merger discussions began between British Aerospace and DASA in July 1998, just as French participation became more likely with the announcement that Aérospatiale was to merge with [[Matra]] and emerge with a diluted French government shareholding.<ref>{{Cite news |title=BAe and Dasa discuss proposals for merger: Aerospace groups still have 'important issues to resolve'|work=Financial Times |page=1 |date=24 July 1998}}</ref> A merger was agreed between British Aerospace chairman [[Richard Evans (businessman)|Richard Evans]] and DASA CEO [[Jürgen E. Schrempp|Jürgen Schrempp]].<ref name="ftBAeDASA">{{Cite news |first=Peter |last=Spiegel|title=The largest aerospace companies gather next week for the Farnborough air show but the event will be without its long-time unofficial host|work=Financial Times|page=11|date=17 July 2004}}</ref>

Meanwhile, GEC was also under pressure to participate in defence industry consolidation. Reporting the appointment of George Simpson as GEC managing director in 1996, ''The Independent'' said "some analysts believe that Mr Simpson's inside knowledge of BAe, a long-rumoured GEC bid target, was a key to his appointment. GEC favours forging a national 'champion' defence group with BAe to compete with the giant US organisations."<ref>{{Cite news |first=Russell|last=Hotten |title=GEC confirms Simpson job|work=The Independent |location=UK |publisher=Newspaper Pub |page=17|date=19 March 1996}}</ref> When GEC put MES up for sale on 22 December 1998, British Aerospace abandoned the DASA merger in favour of purchasing its British rival. The merger of British Aerospace and MES was announced on 19 January 1999.<ref>BAE Systems Annual Report 1999 22. BAE Systems plc (2000).</ref> Evans stated in 2004 that his fear was that an American defence contractor would acquire MES and challenge both British Aerospace and DASA.<ref name="ftBAeDASA"/> The merger created a [[vertically integrated]] company which ''The Scotsman'' described as "[a combination of British Aerospace's] contracting and platform-building skills with Marconi's coveted electronics systems capability",<ref>{{Cite news |first=Louise|last=Nevill|title=BAe and Marconi moving toward merger|work=The Scotsman |location=UK |publisher=The Scotsman Publications|page=17|date=4 January 1999}}</ref> for example combining the manufacturer of the Eurofighter with the company that provided many of the aircraft's electronic systems; British Aerospace was MES's largest customer.<ref>{{Cite news |title=Speculation Rises on GEC Merger |work=The Scotsman |location=UK |publisher=The Scotsman Publications |date=28 December 1998}}</ref> In contrast, DASA's response to the breakdown of the merger discussion was to merge with [[Aérospatiale]] to create the European Aeronautic Defence and Space Company ([[EADS]]), a [[horizontal integration]].<ref>{{cite news|url=https://www.theguardian.com/business/2000/jul/24/baesystemsbusiness|title=Airbus feud threatens UK jobs|date=24 July 2000|newspaper=The Guardian|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190306044647/https://www.theguardian.com/business/2000/jul/24/baesystemsbusiness|archive-date=6 March 2019|url-status=live}}</ref>

Seventeen undertakings were given by BAE Systems to the [[Department of Trade and Industry (United Kingdom)|Department of Trade and Industry]] which prevented a reference of the merger to the [[Monopolies and Mergers Commission]]. These were largely to ensure that the integrated company would tender sub-contracts to external companies on an equal basis with its subsidiaries. Another condition was the "[[Chinese wall|firewalling]]" of former British Aerospace and MES teams on defence projects such as the [[Joint Strike Fighter Program|Joint Strike Fighter]] (JSF). In 2007 the government announced that it had agreed to release BAE Systems from ten of the undertakings due to "a change in circumstances".<ref>{{Cite news |title=UK Releases BAE SYSTEMS From Undertakings For Marconi Electronic Merger |work=Defense Daily International |date= 9 February 2007}}</ref>

BAE Systems inherited the UK government-owned [[golden share|"golden" share]] that was established when British Aerospace was privatised. This unique share prevents amendments of certain parts of the company's [[Articles of Association (law)|Articles of Association]] without the permission of the Secretary of State.<ref name="compcomm">{{cite web |url=http://www.competition-commission.org.uk/rep_pub/reports/1991/fulltext/296c2.pdf |title=BAe and Thomson-CSF SA: A report on the proposed merger |access-date=8 December 2005 |date=6 February 1991 |publisher=[[Competition Commission]] |archive-url=https://web.archive.org/web/20060214161332/http://www.competition-commission.org.uk/rep_pub/reports/1991/fulltext/296c2.pdf |archive-date=14 February 2006 |url-status=usurped}}</ref> These Articles require that no foreign person or persons acting together may hold more than 15% of the company's shares.<ref>{{cite web|url=https://investors.baesystems.com/shareholder-information/foreign-shareholding/2012|title=Individual Foreign Shareholding Restrictions|publisher=BAE Systems|access-date=25 February 2018|archive-url=https://web.archive.org/web/20171030140959/http://investors.baesystems.com/shareholder-information/foreign-shareholding/2012|archive-date=30 October 2017|url-status=live}}</ref>

===2000s===
BAE Systems' first annual report identified Airbus, support services to militaries and integrated systems for air, land and naval applications as key areas of growth. It also stated the company's desire to both expand in the US and participate in further consolidation in Europe. BAE Systems described 2001 as an "important year" for its European joint ventures, which were reorganised considerably. The company has described the rationale for expansion in the US; "[it] is by far the largest defence market with spend running close to twice that of the Western European nations combined. Importantly, US investment in research and development is significantly higher than in Western Europe."<ref>{{cite web |url=http://production.investis.com/investors/news/rp/rp2001/ar00/ar00.pdf|archive-url=https://web.archive.org/web/20071127160425/http://production.investis.com/investors/news/rp/rp2001/ar00/ar00.pdf|archive-date=27 November 2007|title=BAE Systems 2000 Annual Report |access-date=5 October 2007 |publisher=BAE Systems |page=6}}</ref> When [[Dick Olver]] was appointed chairman in July 2004 he ordered a review of the company's businesses which ruled out further European acquisitions or joint ventures and confirmed a "strategic bias" for expansion and investment in the US.<ref>{{Cite news |first=Peter |last=Spiegel|title=Oil or missiles, the constant is power|work=Financial Times|date=7 December 2004}}</ref> The review also confirmed the attractiveness of the land systems sector and, with two acquisitions in 2004 and 2005, BAE moved from a limited land systems supplier to the second largest such company in the world. This shift in strategy was described as "remarkable" by the ''[[Financial Times]]''.<ref name="baelandshift">{{Cite news |first=Peter |last=Spiegel|title=BAE prepares for increase land war spend|work=Financial Times|date=25 June 2005}}</ref> Between 2008 and early 2011 BAE acquired five [[Computer security|cybersecurity]] companies in a shift in strategy to take account of reduced spending by governments on "traditional defence items such as warships and tanks".<ref>{{Cite news |title=BAE switches its focus from tanks and warships to cyber security |author=Robertson, David |newspaper=The Times |date=15 January 2011}}</ref>

In 2000 [[Matra Marconi Space]], a joint BAE Systems/Matra company, was merged with the space division of DASA to form [[Astrium]]. On 16 June 2003 BAE sold its 25% share of Astrium for £84&nbsp;million, however due to the lossmaking status of the company, BAE Systems invested an equal amount for "restructuring".<ref>{{Cite news |first= Mark |last= Odell |title= BAE agrees new deal for Astrium |work=Financial Times |page= 15 |date= 1 February 2003}}</ref> BAE Systems sold its 54% majority share of [[BAE Systems Canada]], an electronics company, in April for CA$310 (approx. £197&nbsp;million as of December 2010).<ref name="acquisitondisposal">{{cite web |url=http://bae-systems-investor-relations.production.investis.com/strategy-and-performance/acquisitions-and-disposals.aspx |archive-url=https://web.archive.org/web/20110303222216/http://bae-systems-investor-relations.production.investis.com/strategy-and-performance/acquisitions-and-disposals.aspx |archive-date=3 March 2011 |title=Acquisitions and Disposals|publisher=BAE Systems plc |access-date=22 December 2010}}</ref> In November 2001, the company announced the closure of the Avro Regional Jet ([[BAe 146|Avro RJ]]) production line at [[Woodford, Cheshire|Woodford]] and the cancellation of the Avro RJX, an advanced series of the aircraft family, as the business was "no longer viable".<ref>{{Cite press release |title=BAE SYSTEMS closes the RJX Programme |publisher=BAE Systems plc |date=27 November 2001 |url=http://www.baesystems.com/Newsroom/NewsReleases/2001/press_27112001.html |access-date=4 October 2007 |archive-url= https://web.archive.org/web/20071020052514/http://baesystems.com/Newsroom/NewsReleases/2001/press_27112001.html |archive-date= 20 October 2007 |url-status= live}}</ref> The final Avro RJ to be completed became the last British civil airliner. In November 2001 BAE sold its 49.9% share of [[Thomson Marconi Sonar]] to Thales for £85&nbsp;million.<ref name="acquisitondisposal"/> A further step of European defence consolidation was the merger of BAE's share of [[Matra BAe Dynamics]] and the missile division of Alenia Marconi Systems (AMS) into [[MBDA]] in December. MBDA thus became the world's second largest missile manufacturer.<ref>{{Cite news |title=EADS, BAE and Finmeccanica Complete MBDA Merger|work=Defense Daily International |date=21 December 2001|quote=the new MBDA, the world's second largest missile manufacturer behind Raytheon}}</ref> Although EADS (now [[Airbus SE]]) was later reported to be interested in acquiring full control of MBDA, BAE said that, unlike Airbus, MBDA is a "core business".<ref>{{Cite news |title= MBDA prepares for consolidation |work=Financial Times |date= 16 March 2006}}</ref><ref>{{Cite news |first=Douglas |last=Barrie |author2=Wall, Robert|author3= Sparaco, Pierre |title=High-Stakes Gamble; BAE Systems bets future on defense, using its Airbus share as ante|work=Aviation Week & Space Technology |date=17 April 2006}}</ref>

[[File:Astute2cropped.jpg|thumb|left|The {{sclass|Astute|submarine}} project caused BAE to issue a profit warning in 2002 and invest £250&nbsp;million to overcome its difficulties.]]
In June 2002, BAE Systems confirmed it was in takeover discussions with [[TRW Inc.|TRW]], an American aerospace, automotive and defence business. This was prompted by [[Northrop Grumman]]'s £4.1&nbsp;billion (approx. US$6&nbsp;billion c. 2002) hostile bid for TRW in February 2002. A bidding war between BAE Systems, Northrop and [[General Dynamics]] ended on 1 June when Northrop's increased bid of £5.1&nbsp;billion was accepted. On 11 December 2002, BAE Systems issued a shock profit warning due to cost overruns of the [[BAE Systems Nimrod MRA4|Nimrod MRA4]] maritime reconnaissance/attack aircraft and the {{sclass|Astute|submarine}} projects.<ref>{{Cite news |first=Mark|last=Odell |title=BAE warning sends share price to 7-year low: News of 'additional issues' on two big defence contracts takes market by surprise|work=Financial Times |date=12 December 2002}}</ref> On 19 February 2003 BAE took a charge of £750&nbsp;million against these projects and the [[Ministry of Defence (United Kingdom)|Ministry of Defence]] (MoD) agreed to pay a further £700&nbsp;million of the cost.<ref>{{Cite news |first=Mark|last=Odell|title=Whitehall re-draws key BAE defence contracts|work=Financial Times |date=20 February 2003}}</ref> In 2000 the company had taken a £300&nbsp;million "loss charge" on the Nimrod contract which was expected to cover "all the costs of completion of the current contract".<ref>{{Cite news |first= Kevin |last= Done |title= Nimrod refit turns into nightmare |work=Financial Times |page= 24 |date= 13 December 2002}}</ref> The troubled Nimrod project would ultimately be cancelled as part of the [[Strategic Defence and Security Review 2010|2010 Strategic Defence and Security Review]] (SDSR).<ref>{{cite news|url=https://www.telegraph.co.uk/news/uknews/defence/8287334/Nimrod-a-sorry-saga-with-a-messy-ending.html|title=Nimrod: a sorry saga with a messy ending|date=27 January 2011|newspaper=The Telegraph|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190306050859/https://www.telegraph.co.uk/news/uknews/defence/8287334/Nimrod-a-sorry-saga-with-a-messy-ending.html|archive-date=6 March 2019|url-status=live}}</ref>

The UK government, following a cabinet row described as "one of the most bitter Cabinet disputes over defence contracts since the [[Westland affair|Westland helicopter affair]] in 1985", ordered 20 [[BAE Hawk]] trainer aircraft with 24 options in July 2003 in a deal worth £800&nbsp;million.<ref name="hawk03">{{Cite news |first=Michael |last=Evans|author2=Benett, Rosemary |title= Cabinet battle over British jet contract |work=The Times |location=UK |date=31 July 2003}}</ref> The deal was significant because it was a factor in India's decision to finalise a £1&nbsp;billion order for 66 Hawks in March 2004.<ref name="hawk03"/><ref>{{Cite news |first=Russell|last=Hotten |title= Protests loom over Hawk deal with India |work=The Times |location=UK|publisher=Times Newspapers |date=20 March 2004}}</ref> Also in July 2003 BAE Systems and [[Finmeccanica]] announced their intention to set up three joint venture companies, to be collectively known as [[Eurosystems]]. These companies would have pooled the avionics, [[C4ISTAR]] and communications businesses of the two companies.<ref>{{cite news |title=BAE ties up £2.6bn Italian deal |url=http://news.bbc.co.uk/1/hi/business/3043328.stm |work=BBC News |date=3 June 2003 |access-date=13 September 2007 |archive-url=https://web.archive.org/web/20070313182258/http://news.bbc.co.uk/1/hi/business/3043328.stm |archive-date=13 March 2007 |url-status=live}}</ref> However the difficulties of integrating the companies in this way led to a re-evaluation of the proposal; BAE Systems' 2004 Annual Report states that "recognising the complexity of the earlier proposed Eurosystems transaction with Finmeccanica we have moved to a simpler model". The main part of this deal was the dissolution of AMS and the establishment of [[SELEX Sensors and Airborne Systems]]; BAE Systems sold its 25% share of the latter to Finmeccanica for €400&nbsp;million (approx. £270&nbsp;million c. 2007) in March 2007.<ref>{{Cite news |first=Patricia J.|last=Parmalee |title=Selex Sale Sealed |work=Aviation Week & Space Technology |publisher=The McGraw-Hill Companies |date=9 April 2007}}</ref>

In May 2004, it was reported that the company was considering selling its shipbuilding divisions, [[BAE Systems Naval Ships]] and [[BAE Systems Submarines]]. It was understood that General Dynamics wished to acquire the submarine building facilities at [[Barrow-in-Furness]], while [[VT Group]] was said to be interested in the remaining yards on the [[River Clyde|Clyde]].<ref name="mergerships"/> Instead, in 2008 BAE Systems merged its Surface Fleet arm with the shipbuilding operations of VT Group to form [[BVT Surface Fleet]], an aim central to the British Government's [[Defence Industrial Strategy]].<ref>{{Cite news |first=David |last=Robertson |title=BAE-VT merger |url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article2141581.ece |work=The Times |location=London |date=26 July 2007 |access-date=7 September 2007 |archive-url=https://web.archive.org/web/20110611170925/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article2141581.ece |archive-date=11 June 2011 |url-status=dead}}</ref><ref>{{cite news |author=<!--Staff writer(s)/no by-line.--> |title=Warship deal takes a step closer |url=http://news.bbc.co.uk/1/hi/scotland/glasgow_and_west/7481923.stm |work=BBC News |location= |date=1 July 2008 |access-date=2021-03-17}}</ref>

[[File:1BFV01.jpg|thumb|BAE's £2.5&nbsp;billion purchase of United Defense in 2005 added the [[M2 Bradley|M2/M3 Bradley]] family of armoured vehicles to its product line.]]
On 4 June 2004, BAE Systems outbid General Dynamics for [[Alvis Vickers]], the UK's main manufacturer of armoured vehicles.<ref>{{cite news |title=BAE triumphs in tank firm battle |url=http://news.bbc.co.uk/1/hi/business/3775713.stm |work=BBC News |date=4 June 2004 |access-date=13 September 2007 |archive-url=https://web.archive.org/web/20040703090213/http://news.bbc.co.uk/1/hi/business/3775713.stm |archive-date=3 July 2004 |url-status=live}}</ref> Alvis Vickers was merged with the company's [[RO Defence]] unit to form BAE Systems Land Systems. Recognising the lack of scale of this business compared to General Dynamics, BAE Systems executives soon identified the US defence company [[United Defense|United Defense Industries]] (UDI), a major competitor to General Dynamics, as a main acquisition target.<ref name="baelandshift"/> On 7 March 2005 BAE announced the £2.25&nbsp;billion (approx. US$4.2&nbsp;billion c. 2005) acquisition of UDI.<ref>{{cite news |title=BAE Systems to buy US rival UDI |url=http://news.bbc.co.uk/1/hi/business/4324733.stm |work=BBC News |date=7 March 2005 |access-date=13 September 2007 |archive-url=https://web.archive.org/web/20070224144722/http://news.bbc.co.uk/1/hi/business/4324733.stm |archive-date=24 February 2007 |url-status=live}}</ref> UDI, now [[BAE Systems Land and Armaments]], manufactures combat vehicles, artillery systems, naval guns, missile launchers and precision guided munitions.<ref>{{cite web |url=https://www.businesswire.com/news/home/20050624005329/en/BAE-SYSTEMS-Completes-Acquisition-United-Defense-Industries |title=BAE Systems Completes Acquisition of United Defense Industries; Creates Global Land Systems Enterprise|publisher=Businesswire|date=24 June 2005|access-date=25 February 2018|archive-url=https://web.archive.org/web/20180225205925/https://www.businesswire.com/news/home/20050624005329/en/BAE-SYSTEMS-Completes-Acquisition-United-Defense-Industries|archive-date=25 February 2018|url-status=live}}</ref>

In December 2005, BAE Systems announced the sale of its German naval systems subsidiary, Atlas Elektronik, to [[ThyssenKrupp]] and EADS. The ''Financial Times'' described the sale as "cut price" because French company Thales bid €300&nbsp;million, but was blocked from purchasing Atlas by the German government on national security grounds.<ref>{{Cite news |first= James |last=Boxell |title= BAE forced into cut-price sale |work=Financial Times |date= 31 December 2005}}</ref> On 31 January 2006 the company announced the sale of BAE Systems Aerostructures to [[Spirit AeroSystems, Inc.]],<ref>{{cite news |title=BAE sells Prestwick unit for £80m |url=http://news.bbc.co.uk/1/hi/scotland/4666854.stm |work=BBC News |date=31 January 2005 |access-date=7 September 2007 |archive-url= https://web.archive.org/web/20070904051513/http://news.bbc.co.uk/1/hi/scotland/4666854.stm |archive-date= 4 September 2007 |url-status= live}}</ref> having said as early as 2002 that it wished to dispose of what it did not regard as a "core business".<ref>{{cite news |url= http://news.bbc.co.uk/1/hi/scotland/2326285.stm |title= Fears for future of BAE plant |work= BBC News |date= 14 October 2002 |access-date= 31 January 2006 |archive-url= https://web.archive.org/web/20040705141855/http://news.bbc.co.uk/1/hi/scotland/2326285.stm |archive-date= 5 July 2004 |url-status= live}}</ref>

On 18 August 2006 Saudi Arabia signed a contract worth £6&nbsp;billion to £10&nbsp;billion for 72 Eurofighter Typhoons, to be delivered by BAE Systems.<ref>{{cite news |url= http://news.bbc.co.uk/1/hi/business/5262120.stm |title= Saudi Arabia buys 72 Eurofighters|work=BBC News |date=18 August 2006 |access-date=18 August 2006 |archive-url= https://web.archive.org/web/20060820084815/http://news.bbc.co.uk/1/hi/business/5262120.stm |archive-date= 20 August 2006 |url-status= live}}</ref> On 10 September 2006 the company was awarded a £2.5&nbsp;billion contract for the upgrade of 80 [[Royal Saudi Air Force]] Tornado IDSs.<ref>{{Cite news |last= Steiner |first=Rupert|title=BAE clinches new £2.5bn Tornado deal with Saudis|publisher=[[The Business (magazine)|The Business]]|date= 10 September 2006}}</ref> One of BAE Systems' major aims, as highlighted in the 2005 Annual Report, was the granting of increased technology transfer between the UK and the US. The F-35 (JSF) programme became the focus of this effort, with British government ministers such as [[Paul Drayson, Baron Drayson|Lord Drayson]], [[Defence Procurement Agency|Minister for Defence Procurement]], suggesting the UK would withdraw from the project without the transfer of technology that would allow the UK to operate and maintain F-35s independently. On 12 December 2006, Lord Drayson signed an agreement which allows "an unbroken British chain of command" for operation of the aircraft.<ref>{{Cite news |first=Tom|last=Baldwin |title=Britain in fighter deal with US |work=The Times |location=UK |date=13 December 2006 <!--|access-date=2 March 2007-->}}</ref> On 22 December 2006 BAE received a £947&nbsp;million contract to provide guaranteed availability of [[Royal Air Force]] (RAF) Tornados.<ref>{{Cite news |first=David |last=Robertson |title=BAE emerges from the political storm with MoD Tornado contract |work=The Times |location=UK |date=23 December 2006}}</ref>

In May 2007 the company announced its subsidiary BAE Systems Inc. was to purchase [[Armor Holdings]] for £2.3&nbsp;billion (approx. US$4.5&nbsp;billion c. 2007) and completed the deal on 31 July 2007.<ref name="Armor">{{Cite press release |title= BAE Systems plc announces proposed acquisition of Armor Holdings Inc. |publisher=BAE Systems plc |date= 7 May 2007 |url= http://www.baesystems.com/BAEProd/groups/public/documents/bae_publication/bae_pdf_armor.pdf |access-date=7 May 2007 |archive-url= https://web.archive.org/web/20070616024943/http://www.baesystems.com/BAEProd/groups/public/documents/bae_publication/bae_pdf_armor.pdf |archive-date= 16 June 2007 |url-status= live}}</ref><ref>{{Cite press release |title= BAE Systems completes acquisition of Armor Holdings Inc. |publisher=BAE Systems plc |date= 31 July 2007 |url= http://www.baesystems.com/Newsroom/NewsReleases/autoGen_107631191035.html|access-date=7 September 2007 |archive-url= https://web.archive.org/web/20070930154544/http://www.baesystems.com/Newsroom/NewsReleases/autoGen_107631191035.html |archive-date= 30 September 2007 |url-status= live}}</ref> The company was a manufacturer of tactical wheeled vehicles and a provider of vehicle and individual armour systems and survivability technologies.<ref name="Armor"/> BAE Systems (and British Aerospace previously) was a technology partner to the [[McLaren]] Formula One team from 1996 to December 2007.<ref name="mclarenpr">{{Cite press release |title= Racing success as BAE Systems and Team McLaren Mercedes technology partnership celebrates 10 years |publisher=BAE Systems plc |date= 9 March 2006 |url= http://www.baesystems.com/Newsroom/NewsReleases/2006/press_090320061.html |access-date=25 March 2008 |archive-url=https://web.archive.org/web/20080515204738/http://www.baesystems.com/Newsroom/NewsReleases/2006/press_090320061.html|archive-date=15 May 2008}}</ref><ref>{{Cite news |title= 2008 Ultimate Season Review |work=F1 Racing|pages= 99–101 |publisher=Haymarket |date=March 2008}}</ref> The partnership originally focused on McLaren's F1 car's aerodynamics, eventually moving on to carbon fibre techniques, wireless systems and fuel management. BAE Systems' main interest in the partnership was to learn about the high speed build and operations processes of McLaren.<ref name="mclarenpr"/>

The company announced the acquisition of [[Tenix Defence]], a major Australian defence contractor in January 2008. The purchase was completed on 27 June for A$775&nbsp;million (£373&nbsp;million) making [[BAE Systems Australia]] that country's largest defence contractor.<ref>{{Cite news |first=David |last=Robertson |title=Ian King takes over at BAE Systems and promises to raise standards |url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4228109.ece |work=The Times |location=London |date=28 June 2008 |access-date=25 July 2008 |archive-url=https://web.archive.org/web/20110612062528/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4228109.ece |archive-date=12 June 2011 |url-status=dead}}</ref> The MoD awarded BAE Systems a 15-year munitions contract in August 2008 worth up to £3&nbsp;billion, known as Munition Acquisition Supply Solution (MASS). The contract guaranteed supply of 80% of the UK Armed Forces' ammunition and required BAE to modernise its munitions manufacturing facilities.<ref>{{cite news |url=http://news.bbc.co.uk/1/hi/business/7573160.stm |title=BAE in £2bn MoD ammunition deal |work=BBC News |date=20 August 2008 |access-date=6 December 2011 |archive-url=https://web.archive.org/web/20080908142953/http://news.bbc.co.uk/1/hi/business/7573160.stm |archive-date=8 September 2008 |url-status=live}}</ref> BAE Systems expanded its intelligence and security business with the £531&nbsp;million purchase of [[Detica|Detica Group]] in July 2008.<ref>{{cite web |first=Miles|last=Costello |title=BAE makes agreed £531m cash offer for Detica |url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4419501.ece|work=The Times|location=London|date=29 July 2008|access-date=13 January 2009|archive-url= https://web.archive.org/web/20100522101515/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4419501.ece|archive-date=22 May 2010|url-status=dead}}</ref> It continued this strategy with purchases of Danish cyber and intelligence company ETI for approximately $210&nbsp;million in December 2010, and [[Norkom|Norkom Group PLC]] the following month for €217&nbsp;million. The latter provides counter fraud and anti-money laundering solutions to the global financial services industry where its software assists institutions to comply with regulations on financial intelligence and monitoring.<ref>{{cite web |last=Hubler |first=David |url=http://washingtontechnology.com/articles/2010/12/22/danish-purchase-bae-global-cyber-and-intell.aspx |title=Purchase of Danish company expands BAE's cyber, intell capabilities |publisher=Washingtontechnology.com |date=22 December 2010 |access-date=6 December 2011 |archive-url=https://web.archive.org/web/20111006063637/http://washingtontechnology.com/articles/2010/12/22/danish-purchase-bae-global-cyber-and-intell.aspx |archive-date=6 October 2011 |url-status=live}}</ref><ref>{{cite web |url=http://www.baesystems.com/Newsroom/NewsReleases/autoGen_11101411115.html |title=BAE Systems announces recommended offer to acquire Norkom at |publisher=Baesystems.com |date=14 January 2011 |access-date=17 April 2011 |url-status=dead |archive-url=https://web.archive.org/web/20160104143231/http://www.baesystems.com/Newsroom/NewsReleases/autoGen_11101411115.html |archive-date=4 January 2016}}</ref>

====Airbus shareholding====
{{main|Airbus}}

BAE Systems inherited British Aerospace's share of Airbus Industrie, which consisted of two factories at [[Broughton, Flintshire|Broughton]] and [[Filton]]. These facilities manufactured wings for the Airbus family of aircraft. In 2001 Airbus was incorporated as Airbus SAS, a [[Société par actions simplifiée|joint stock company]]. In return for a 20% share in the new company BAE Systems transferred ownership of its Airbus plants (known as [[Airbus UK]]) to the new company.<ref>{{cite web |url=https://www.flightglobal.com/news/articles/bae-reveals-39airbus-uk39-proposal-64872/ |title=BAE reveals 'Airbus UK' proposal |date=25 April 2000 |publisher=Flight Global|access-date=25 February 2018 |archive-url=https://web.archive.org/web/20180226032233/https://www.flightglobal.com/news/articles/bae-reveals-39airbus-uk39-proposal-64872/ |archive-date=26 February 2018 |url-status=live}}</ref>

Despite repeated suggestions as early as 2000 that BAE Systems wished to sell its 20% share of Airbus, the possibility was denied by the company.<ref name="scotsman2000"/><ref>{{Cite news |first=Peter |last=Spiegel |title=BAE denies Airbus sale plans |work=Financial Times |date=7 September 2005}}</ref> However, on 6 April 2006 it was reported that it was indeed to sell its stake, then "conservatively valued" at £2.4&nbsp;billion.<ref name="BBC Airbus">{{cite news |url=http://news.bbc.co.uk/1/hi/business/4886154.stm |title=BAE confirms possible Airbus sale |work=BBC News |date=7 April 2006 |access-date=12 August 2006 |archive-url=https://web.archive.org/web/20061120113320/http://news.bbc.co.uk/1/hi/business/4886154.stm |archive-date=20 November 2006 |url-status=live}}</ref> Due to the slow pace of informal negotiations, BAE Systems exercised its [[put option]] which saw investment bank [[N M Rothschild & Sons|Rothschild]] appointed to give an independent valuation. Six days after this process began, Airbus announced delays to the [[Airbus A380|A380]] with significant effects on the value of Airbus shares. On 2 June 2006 Rothschild valued the company's share at £1.87&nbsp;billion, well below its own analysts' and even EADS's expectations.<ref>{{Cite news |first= David |last= Gow |url= https://www.theguardian.com/business/2006/jul/03/theairlineindustry.baesystemsbusiness |title= BAE under pressure to hold Airbus stake |work= The Guardian |location= London |publisher= Guardian Newspapers |date= 3 July 2006 |access-date= 3 July 2006 |archive-url= https://web.archive.org/web/20131002154400/http://www.theguardian.com/business/2006/jul/03/theairlineindustry.baesystemsbusiness |archive-date= 2 October 2013 |url-status= live}}</ref> The BAE Systems board recommended that the company proceed with the sale. Shareholders voted in favour and the sale was completed on 13 October.<ref>{{Cite news |title= BAE Systems says completed sale of Airbus stake to EADS |work=Forbes |date= 13 October 2006 |url= https://www.forbes.com/feeds/afx/2006/10/13/afx3089453.html |access-date=13 October 2006 |url-status=dead|archive-url=https://web.archive.org/web/20110604072701/http://www.forbes.com/feeds/afx/2006/10/13/afx3089453.html|archive-date=4 June 2011}}</ref> This saw the end of UK-owned involvement in civil airliner production. Airbus Operations Ltd (the former Airbus UK) continued to be the Airbus "Centre of Excellence" for wing production, employing over 9,500 in 2007.<ref>{{cite web |url= http://www.airbus.com/en/worldwide/airbus_in_uk.html |title=Airbus in UK |work=Airbus |access-date=5 October 2007 |archive-url= https://web.archive.org/web/20071012161735/http://airbus.com/en/worldwide/airbus_in_uk.html |archive-date= 12 October 2007}}</ref>

===2010s===
In February 2010 BAE Systems announced a £592&nbsp;million [[writedown]] of the former Armor Holdings business following the loss of the [[Family of Medium Tactical Vehicles]] contract in 2009.<ref>{{cite web |title=BAE takes £600m hit on lost trucks contract |first=Gribben |last=Roland |newspaper=The Daily Telegraph|date=18 February 2010 |url=https://www.telegraph.co.uk/finance/newsbysector/industry/defence/7245301/BAE-takes-600m-hit-on-lost-trucks-contract.html |access-date=18 February 2010 |location=London |archive-url=https://web.archive.org/web/20100220023508/http://www.telegraph.co.uk/finance/newsbysector/industry/defence/7245301/BAE-takes-600m-hit-on-lost-trucks-contract.html |archive-date=20 February 2010 |url-status=live}}</ref> It was outbid by [[Oshkosh Corporation]] for the £2.3&nbsp;billion ($3.7&nbsp;billion) contract.<ref>{{cite web |title=BAE Systems left licking its wounds on Armor Holdings acquisition |first=David |last=Robertson |newspaper=The Times |date=15 October 2009 |url=https://www.thetimes.co.uk/article/bae-systems-left-licking-its-wounds-on-armor-holdings-acquisition-qljf6njw6kd |access-date=12 October 2022 |location=London |archive-url=https://web.archive.org/web/20221012185028/https://www.thetimes.co.uk/article/bae-systems-left-licking-its-wounds-on-armor-holdings-acquisition-qljf6njw6kd/engineering/article6875365.ece |archive-date=12 October 2022 |url-status=live}}</ref> Land and Armaments had been the "star performer" of BAE Systems' subsidiaries, growing from sales of £482&nbsp;million in 2004 to £6.7&nbsp;billion in 2009.<ref name="prelim09">{{cite web |url=http://bae-systems-investor-relations-2009.production.investis.com/~/media/Files/B/BAE-Systems-Investor-Relations-2009/PDFs/results-and-reports/results/2010/BAE_2009_Prelim_results.pdf |title=Preliminary Announcement and Presentation 2009|date=18 February 2010 |publisher=BAE Systems |access-date=19 February 2010 |archive-url= https://web.archive.org/web/20100331132234/http://bae-systems-investor-relations-2009.production.investis.com/~/media/Files/B/BAE-Systems-Investor-Relations-2009/PDFs/results-and-reports/results/2010/BAE_2009_Prelim_results.pdf |archive-date= 31 March 2010 |url-status= live}}</ref><ref>{{cite web |title=The route ahead lies across rough terrain |first=Sylvia |last=Pfeifer |url=http://www.ft.com/cms/s/0/ff34c7c0-1cf5-11df-aef7-00144feab49a.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/0/ff34c7c0-1cf5-11df-aef7-00144feab49a.html |archive-date=10 December 2022 |url-status=live |newspaper=Financial Times |date=19 February 2010 |access-date=22 February 2010 |url-access=registration}}</ref><ref name="findata"/>

BAE Systems inherited British Aerospace's 35% share of [[Saab AB]], with which it produced and marketed the [[JAS 39 Gripen|Gripen]] fighter aircraft. In 2005 it reduced this share to 20.5% and in March 2010 announced its intention to sell the remainder. ''The Times'' stated that the decision brought "to an end its controversial relationship with the Gripen fighter aircraft".<ref name="saabsale">{{cite web |title=BAE cuts links to Saab and ill-fated fighter |first=David |last=Robertson |url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article7051389.ece |newspaper=The Times |date=5 March 2010 |access-date=19 March 2010 |location=London |archive-url=https://web.archive.org/web/20110611190843/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article7051389.ece |archive-date=11 June 2011 |url-status=dead}}</ref> Several of the export campaigns for the aircraft were subject to allegations of bribery and corruption.<ref name="saabsale"/>

The company continued its move into support services in May 2010 with the purchase of the marine support company [[Atlantic Marine]] for $352&nbsp;million.<ref name="us2010"/> In September 2010 BAE Systems announced plans to sell the [[BAE Systems Platform Solutions|Platform Solutions]] division of BAE Systems Inc., which the ''Financial Times'' estimated could yield as much as £1.3&nbsp;billion. Despite "considerable expressions of interest", the sale was abandoned in January 2011.<ref name="us2010">{{Cite news |title=BAE prepares to streamline US business |first=Carola |last=Hoyos |newspaper=Financial Times |date=11 September 2010 |location=London}}</ref><ref name="platformdisposal">{{Cite news |title=BAE Drops Asset Sale Plan |first=Jon|last=Buck |newspaper=The Wall Street Journal|date=11 January 2011}}</ref> The purchases of {{sclass|Queen Elizabeth|aircraft carrier}}s, the ''Astute''-class submarines, and the [[Type 26 frigate]]s were all confirmed in the 2010 SDSR.<ref name="sdsr">{{cite web|date=19 October 2010|title=Securing Britain in an Age of Uncertainty: The Strategic Defence and Security Review|url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/62482/strategic-defence-security-review.pdf|access-date=30 December 2020|publisher=HM Government}}</ref> A new generation of nuclear missile submarines, the [[Dreadnought-class submarine|''Dreadnought''-class]], was ordered in 2016.<ref name=parliament-20180910>{{cite report |url=https://publications.parliament.uk/pa/cm201719/cmselect/cmpubacc/1028/1028.pdf |title=Ministry of Defence nuclear programme |work=Committee of Public Accounts |publisher=UK Parliament |id=HC 1028 |date=10 September 2018 |access-date=21 September 2018 |archive-url=https://web.archive.org/web/20180922024818/https://publications.parliament.uk/pa/cm201719/cmselect/cmpubacc/1028/1028.pdf |archive-date=22 September 2018 |url-status=live}}</ref>

BAE Systems sold the regional aircraft leasing and asset management arm of its [[BAE Systems Regional Aircraft|Regional Aircraft]] business in May 2011. This unit leases the [[BAe 146]]/Avro RJ family, [[BAe ATP]], [[British Aerospace Jetstream|Jetstream]] and [[BAe 748]]. The company retained the support and engineering activities of the business.<ref>{{cite web |title=BAE Systems Sells Leasing Business, Regional Aircraft Portfolio |url=http://aviationweek.com/awin/bae-systems-sells-leasing-business-regional-aircraft-portfolio |newspaper=Aviation Week |date=27 May 2011 |access-date=31 January 2012 |archive-url=https://web.archive.org/web/20160807160533/http://aviationweek.com/awin/bae-systems-sells-leasing-business-regional-aircraft-portfolio |archive-date=7 August 2016 |url-status=live}}</ref> In September 2011, BAE Systems began consultation with unions and workers over plans to cut nearly 3,000 jobs, mostly in the company's military aircraft division.<ref>{{cite web |url=https://www.bbc.co.uk/news/uk-england-15088511 |title=BAE Systems job cuts: Consultation period due to start |date=28 September 2011 |work=BBC News |access-date=20 June 2018 |archive-url=https://web.archive.org/web/20160105021453/http://www.bbc.co.uk/news/uk-england-15088511 |archive-date=5 January 2016 |url-status=live}}</ref>

In its 2012 half-year report, the company revealed a 10% decline in revenue in the six months up to 30 June due to falling demand for armaments.<ref>{{cite web|url=http://www.armedforces-int.com/news/falling-armaments-demand-hits-bae-profits.html|title=Falling Armaments Demand Hits BAE Profits|publisher=Armed Forces International|date=2 August 2012<!--, 6:30&nbsp;am BST-->|access-date=2 August 2012|archive-url=https://web.archive.org/web/20120803231052/http://www.armedforces-int.com/news/falling-armaments-demand-hits-bae-profits.html|archive-date=3 August 2012|url-status=live}}</ref> In May 2012 the governments of the UK and Saudi Arabia reached an agreement on an arms package which saw a £1.6&nbsp;billion contract awarded to BAE for the delivery of 55 Pilatus PC-21 and 22 BAE Systems Hawk aircraft.<ref>{{cite web|title=Contract Awarded to Enhance Royal Saudi Air Force Training Capability|url=http://www.baesystems.com/article/BAES_048243/contract-awarded-to-enhance-royal-saudi-air-force-training-capability|publisher=BAE Systems|access-date=8 August 2012|archive-url=https://web.archive.org/web/20120610042807/http://www.baesystems.com/article/BAES_048243/contract-awarded-to-enhance-royal-saudi-air-force-training-capability|archive-date=10 June 2012|url-status=live}}</ref> The Sultanate of Oman ordered Typhoon and Hawk aircraft worth £2.5&nbsp;billion in December 2012.<ref>{{cite news |url=https://www.bbc.co.uk/news/business-20808517 |title=BAE Systems wins £2.5bn Oman Hawk and Typhoon contract |date=21 December 2012 |work=BBC News |archive-url=https://web.archive.org/web/20181118183540/https://www.bbc.co.uk/news/business-20808517 |archive-date=18 November 2018 |url-status=live}}</ref>

In September 2012, it was reported that BAE Systems and [[EADS]] had entered merger talks which would have seen BAE shareholders own 40% of the resulting organisation.<ref name="BBC092012-">{{cite news|title=BAE Systems shares shed gains after EADS merger talk|url=https://www.bbc.co.uk/news/business-19584078|access-date=13 September 2012|publisher=BBC|date=13 September 2012|archive-url=https://web.archive.org/web/20120913185650/http://www.bbc.co.uk/news/business-19584078|archive-date=13 September 2012|url-status=live}}</ref><ref name=Bloomberg092012>{{cite news|title=Boeing Says EADS Seeking U.S. Growth With BAE Merger|url=https://www.bloomberg.com/news/2012-09-13/boeing-says-eads-seeking-u-s-growth-with-bae-merger.html|publisher=Bloomberg|date=13 September 2012|first1=Jim|last1=Snyder|first2=Susanna|last2=Ray|url-status=dead|archive-url=https://web.archive.org/web/20141006205720/http://www.bloomberg.com/news/2012-09-13/boeing-says-eads-seeking-u-s-growth-with-bae-merger.html|archive-date=6 October 2014}}</ref> On 10 October 2012, the companies said the merger talks had been called off.<ref>{{cite web |title=BAE-EADS merger cancelled amid political impasse |url=https://www.bbc.co.uk/news/business-19897699 |newspaper=BBC |date=10 October 2012 |access-date=10 October 2012 |archive-url=https://web.archive.org/web/20121010185427/http://www.bbc.co.uk/news/business-19897699 |archive-date=10 October 2012 |url-status=live}}</ref> ''The Guardian'' reported that this was due to the German Government's concern about the "potential size of the French shareholding in the combined company, as well as disagreements over the location of the group's headquarters".<ref>{{cite news |last=Milmo |first=Dan |date=11 October 2012 |title=BAE-EADS: Angela Merkel blamed for collapse of £28bn merger |url=https://www.theguardian.com/business/2012/oct/10/angela-merkel-bae-eads-merger |work=theguardian.com |location=London |access-date=2 November 2018 |archive-url=https://web.archive.org/web/20190508110953/https://www.theguardian.com/business/2012/oct/10/angela-merkel-bae-eads-merger |archive-date=8 May 2019 |url-status=live}}</ref>

In November 2013, BAE Systems announced that shipbuilding would cease in Portsmouth in 2014 with the loss of 940 jobs, and a further 835 jobs would be lost at Filton, near Bristol, and at the shipyards in Govan, Rosyth, and Scotstoun in Scotland.<ref>{{cite news |url=http://descrier.co.uk/uk/2013/11/bae-cut-1775-shipbuilding-jobs/ |title=BAE to cut 1,775 shipbuilding jobs |work=Descrier |date=6 November 2013 |access-date=6 November 2013 |archive-url=https://web.archive.org/web/20131107030437/http://descrier.co.uk/uk/2013/11/bae-cut-1775-shipbuilding-jobs/ |archive-date=7 November 2013 |url-status=live}}</ref> On 9 October 2014, the company announced the loss of 440 management jobs across the country, with 286 of the job cuts in Lancashire.<ref>[https://www.bbc.co.uk/news/business-29550199 "BAE Systems set to cut 440 management jobs"]. {{Webarchive|url=https://web.archive.org/web/20190201054359/https://www.bbc.co.uk/news/business-29550199 |date=1 February 2019}} ''BBC News'', 9 October 2014.</ref><ref>[http://webarchive.loc.gov/all/20141016165238/http://www.defensenews.com/article/20141009/DEFREG01/310090047/BAE%2DCut%2D440%2DManagement%2DJobs "BAE To Cut 440 Management Jobs"]. ''Defense News'', 9 October 2014.</ref>

In July 2014 it announced the acquisition of US intelligence company Signal Innovations Group Inc. to augment imagery and data analysis technologies in its Intelligence & Security business.<ref>{{cite web|url=http://www.defensedaily.com/bae-acquires-signal-innovations-group-2/|title=BAE Acquires Signal Innovations Group|date=16 October 2014|publisher=Defense Daily|access-date=25 February 2018|archive-url=https://web.archive.org/web/20180225205937/http://www.defensedaily.com/bae-acquires-signal-innovations-group-2/|archive-date=25 February 2018|url-status=live}}</ref> In August 2014, BAE was awarded a £248&nbsp;million contract from the [[British government]] to build three new [[offshore patrol vessel]]s.<ref>{{cite web|url=https://www.reuters.com/article/us-britain-bae-systems-idUSKBN0GB28D20140811|title=BAE Systems wins 348 million pounds contract for new UK patrol ships|work=reuters.com|publisher=Reuters|date=21 August 2014|access-date=30 June 2017|archive-url=https://web.archive.org/web/20151017061110/http://www.reuters.com/article/2014/08/11/us-britain-bae-systems-idUSKBN0GB28D20140811|archive-date=17 October 2015|url-status=live}}</ref> In October 2014, BAE Systems won a £600&nbsp;million contract from the MoD to maintain [[HMNB Portsmouth|Portsmouth naval base]] for five years.<ref>{{cite press release |publisher=Reuters |date=1 October 2014 |title=Babcock, BAE Systems win $5.2&nbsp;billion UK naval contracts |url=https://www.reuters.com/article/us-bae-systems-contract-idUSKCN0HQ3DV20141001|access-date=5 June 2021}}</ref> During 2014 BAE Systems acquired US-based cybersecurity firm Silversky for $232.5&nbsp;million.<ref>[https://www.reuters.com/article/2014/10/21/uk-silversky-m-a-bae-systems-idUSKCN0IA0KE20141021 BAE Systems to buy U.S. cyber security firm SilverSky for $232.5 million] {{Webarchive|url=https://web.archive.org/web/20151017061110/http://www.reuters.com/article/2014/10/21/uk-silversky-m-a-bae-systems-idUSKCN0IA0KE20141021 |date=17 October 2015}}. [[Reuters]], 21 October 2014</ref>

During Prime Minister [[Theresa May]]'s visit to Turkey in January 2017, BAE and [[Turkish Aerospace Industries|TAI]] officials signed an agreement, worth about £100 million, for BAE to provide assistance in developing the [[TAI TF Kaan]] aircraft.<ref name="reuters">{{cite news |url= http://uk.reuters.com/article/uk-britain-eu-turkey-bae-idUKKBN15C0IM |title= Britain, Turkey sign defence deal to develop Turkish fighter jet |work= Reuters |date= 27 January 2017 |access-date= 26 June 2017 |archive-url= https://web.archive.org/web/20170512154414/http://uk.reuters.com/article/uk-britain-eu-turkey-bae-idUKKBN15C0IM |archive-date= 12 May 2017 |url-status= dead}}</ref> On 10 October 2017, BAE announced that it would lay off nearly 2,000 out of its approximately 35,000 employees in Britain, mainly due to an order shortage for the Typhoon fighter.<ref name="veconomist"/>

In 2019 BAE Systems sold a 55% share of its UK land business to [[Rheinmetall]]. The resultant joint venture (JV), Rheinmetall BAE Systems Land (RBSL), was established in July 2019 following regulatory approval and is headquartered at the existing facility in Telford, Shropshire.<ref>{{cite news |last1=Chuter |first1=Andrew |last2=Sprenger |first2=Sebastian |date=1 July 2019 |title=Rheinmetall, BAE consummate armored-vehicles joint venture |url=https://www.defensenews.com/global/europe/2019/07/01/rheinmetall-bae-consummate-armored-vehicles-joint-venture/ |work=defensenews.com |access-date=2020-07-09}}</ref>

===2020s===
In August 2020 BAE Systems completed the purchase of [[United Technologies]]' military GPS businesses for $1.9 billion and [[Raytheon Company|Raytheon]]'s military airborne radios business for $275 million.  The sale of these two business was a condition of the merger approval that saw their two parent companies merge to form [[Raytheon Technologies]].<ref>{{cite news |last=Keller |first=John |title=BAE Systems completes $1.9 billion buy of Raytheon's military Global Positioning System (GPS) business |url=https://www.militaryaerospace.com/sensors/article/14181742/gps-raytheon-bae-systems |work=Military & Aerospace Electronics |access-date=2020-12-31}}</ref>

In November 2020, the MoD announced the award of a 20-year, £2.4 billion munitions contract to BAE. This will see BAE manufacture 39 different munitions for the UK armed forces and supersedes the 2008 MASS contract.<ref>{{Cite web|last=Chuter|first=Andrew|date=30 November 2020|title=BAE Systems gets $3.2 billion deal so British forces can reload|url=https://www.defensenews.com/global/europe/2020/11/30/bae-systems-gets-32-billion-deal-so-british-forces-can-reload/|access-date=29 December 2020|website=Defense News}}</ref> In July 2023, BAE received a related £280 million order to address a munitions shortage caused by the supply of ammunition to Ukraine.<ref>{{Cite news |last=Pfeifer |first=Sylvia |last2=Gross |first2=Anna |date=11 July 2023 |title=Heavy artillery BAE Systems seals £280mn munitions deal |work=Financial Times}}</ref>

In 2022, during the [[Russian invasion of Ukraine]], major arms manufacturers, including BAE Systems,<ref>{{cite news |title=BAE Systems forecasts more growth on Ukraine conflict boost |url=https://www.reuters.com/business/aerospace-defense/bae-systems-earnings-rise-95-higher-military-spend-2023-02-23/ |work=Reuters |date=23 February 2023}}</ref> reported a sharp increase in interim sales and profits.<ref>{{cite news |title=Ukraine war: How weapons makers are profiting from the conflict |url=https://news.sky.com/story/ukraine-war-how-weapons-makers-are-profiting-from-the-conflict-12624574 |work=Sky News |date=10 June 2022}}</ref><ref>{{cite news |title=BAE Systems unveils record orders as Ukraine war bolsters military spending |url=https://www.independent.co.uk/business/bae-systems-unveils-record-orders-as-ukraine-war-bolsters-military-spending-b2287942.html |work=The Independent |date=23 February 2023}}</ref>

In August 2023 BAE agreed to acquire the [[Ball Aerospace & Technologies|aerospace division]] of US-based [[Ball Corporation]] for $5.6 billion in cash (approximately £4.5 billion); this was BAE's largest acquisition up until that point and was completed on 16 February 2024.<ref>{{Cite news |last=Shabong |first=Yadarisa |date=17 August 2023 |title=BAE snaps up Ball's aerospace arm for $5.6 billion in its biggest deal ever |url=https://www.reuters.com/markets/deals/uks-bae-systems-buy-ball-aerospace-about-555-bln-2023-08-17/ |work=Reuters}}</ref><ref>{{cite web|url=https://www.baesystems.com/en/article/bae-systems-completes-acquisition-of-ball-aerospace/|title=BAE Systems completes acquisition of Ball Aerospace|publisher=BAE Systems|access-date=14 October 2024}}</ref> In October 2023, BAE was awarded a £3.95 billion contract for development work on [[AUKUS|Aukus-class submarine]]s up to 2028.<ref>{{Cite news |last=Hoskins |first=Peter |date=2 October 2023 |title=Aukus: UK defence giant BAE Systems wins £3.95bn submarine contract |work=BBC News |url=https://www.bbc.co.uk/news/business-66979798 |access-date=23 October 2023}}</ref>

==Products==
[[File:Royal Navy Type 45 Destroyer HMS Daring MOD 45153705.jpg|thumb|[[BAE Systems Maritime – Naval Ships]] built the [[Type 45 destroyer]]. Other subsidiaries of BAE supplied the [[4.5-inch Mark 8 naval gun|naval gun]] and [[SAMPSON]] and [[S1850M]] radars for the class.]]

BAE Systems plays a significant role in the production of military equipment. In 2017, 98% of BAE Systems' total sales were military related.<ref>[https://www.sipri.org/publications/2018/sipri-fact-sheets/sipri-top-100-arms-producing-and-military-services-companies-2017 SIPRI Top 100 Arms-Producing and Military Service Companies] SIPRI. Retrieved 2019-12-18.</ref><ref>{{cite web|url=http://www.defensenews.com/static/features/top100/charts/rank_2008.php?c=FEA&s=T1C |archive-url=https://archive.today/20110721221828/http://www.defensenews.com/static/features/top100/charts/rank_2008.php?c=FEA&s=T1C |archive-date=21 July 2011 |title=Defense News Top 100 for 2008 |year=2008 |work=defensenews.com |publisher=Army Times Publishing Company |access-date=26 February 2010 |url-status=dead}}</ref>

It plays important roles in military aircraft production. The company's Typhoon fighter is one of the main front line aircraft of the RAF.<ref>{{cite web |url= http://83.138.136.216/rafcms/mediafiles/2BC70E2E_1143_EC82_2E67F9879E4DF52A.pdf |title= Royal Air Force Aircraft & Weapons |publisher=Royal Air Force |pages= 6–15 |access-date=12 February 2007 |archive-url= https://web.archive.org/web/20070616024941/http://83.138.136.216/rafcms/mediafiles/2BC70E2E_1143_EC82_2E67F9879E4DF52A.pdf |archive-date=16 June 2007}}</ref> The company is a major partner in the F-35 Lightning II programme.<ref>{{cite news|url=https://ukdefencejournal.org.uk/bae-deliver-1000th-f-35-jet-fuselage/|title=BAE deliver 1,000th F-35 jet fuselage|date=18 February 2023|newspaper=UK Defence Journal|access-date=28 February 2023}}</ref> Its Hawk advanced jet trainer aircraft has been widely exported.<ref>{{Cite news |title= Military trainers review: BAE Systems |url= http://www.flightglobal.com/articles/2007/03/20/212748/military-trainers-review-bae-systems.html |work= Flight International |publisher= Reed Business Information |date= 20 March 2007 |access-date= 22 March 2007 |archive-url= https://web.archive.org/web/20070930033602/http://www.flightglobal.com/articles/2007/03/20/212748/military-trainers-review-bae-systems.html |archive-date= 30 September 2007 |url-status= live}}</ref> In July 2006, the British government declassified the [[BAE HERTI|HERTI]] (High Endurance Rapid Technology Insertion), an [[Unmanned Aerial Vehicle]] (UAV) which can navigate autonomously.<ref>{{cite news |first=Tim |last=Bowler |title=BAE spyplane eyes commercial sector |url=http://news.bbc.co.uk/2/hi/business/5198364.stm |work=BBC News |date=20 July 2006 |access-date=25 July 2008 |archive-url=https://web.archive.org/web/20090208013026/http://news.bbc.co.uk/2/hi/business/5198364.stm |archive-date=8 February 2009 |url-status=live}}</ref> It is currently developing a [[sixth-generation jet fighter]] aircraft for the RAF marketed as the "[[BAE Systems Tempest|Tempest]]" along with the MoD, [[Rolls-Royce Holdings|Rolls-Royce]], [[Leonardo (company)|Leonardo]] and MBDA. It is intended to enter service from 2035 replacing the Typhoon aircraft in service with the RAF.<ref>{{cite news|url=https://www.theguardian.com/uk-news/2018/jul/16/uk-tempest-fighter-jet-typhoon-farnborough-airshow|title=UK unveils new Tempest fighter jet to replace Typhoon|date=16 July 2018|newspaper=The Guardian|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190101165418/https://www.theguardian.com/uk-news/2018/jul/16/uk-tempest-fighter-jet-typhoon-farnborough-airshow|archive-date=1 January 2019|url-status=live}}</ref>

[[BAE Systems Land and Armaments]] manufactures the [[M2 Bradley|M2/M3 Bradley]] fighting vehicle family, the US Navy [[Advanced Gun System]] (AGS), [[M113 armoured personnel carrier|M113]] armoured personnel carrier (APC), [[M109 howitzer|M109 Paladin]], [[Archer Artillery System|Archer]], [[M777 howitzer]], the British Army's [[Challenger 2 tank|Challenger 2]], [[Warrior Tracked Armoured Vehicle]], [[Panther Command and Liaison Vehicle]], and the [[SA80|SA80 assault rifle]].<ref>{{cite news|url=https://www.defenceprocurementinternational.com/news/land/british-army-sa80-assault-rifle-upgrade|title=The SA80 Gets Multi-Million Pound Upgrade|date=13 April 2018|newspaper=Defence Procurement International|access-date=5 June 2021}}</ref>

Major naval projects include the ''Astute''-class submarines, Type 26 frigates and ''Dreadnought''-class submarines.<ref>{{cite web |url=https://www.defensenews.com/global/europe/2021/03/23/new-uk-naval-shipbuilding-strategy-prizes-keeping-foreign-yards-out/ |title=New UK naval shipbuilding strategy prizes keeping foreign yards out |last=Chuter |first=Andrew |date=23 March 2021 |website=/www.defensenews.com |publisher=Sightline Media Group LLC |access-date=13 February 2022}}</ref>

BAE Systems is indirectly engaged in production of [[nuclear weapons]] – through its share of MBDA it is involved with the production and support of the [[Air-Sol Moyenne Portée|ASMP]] missile, an air-launched nuclear missile which forms part of the [[Force de frappe|French nuclear deterrent]].<ref>{{Cite news|date=1 December 2014|title=France Studies Nuclear Missile Replacement|work=Defense News}}</ref> The company is also the UK's only [[nuclear submarine]] manufacturer and thus produces a key element of the United Kingdom's nuclear weapons capability.<ref>{{Cite news|last=Boxell|first=James|date=16 March 2007|title=BAE Systems and Carlyle in talks over shipyard|work=Financial Times|quote=BAE owns the UK's only submarine-building yard at Barrow-in-Furness in Cumbria... Britain's Trident nuclear deterrent... is carried aboard four submarines.}}</ref>

BAE has operated the [[Holston Army Ammunition Plant]] in Tennessee, since 1999, and the [[Radford Army Ammunition Plant]] in [[Radford, Virginia|Radford]], Virginia since 2012.<ref>{{cite news |title=Britain's BAE Systems wins $8.8 bln contract to continue operating Tennessee ammo plant |url=https://www.reuters.com/business/aerospace-defense/britains-bae-systems-wins-88-bln-contract-continue-operating-tennessee-ammo-2023-12-12/#:~:text=Dec%2012%20(Reuters)%20%2D%20Britain's,1%2C%202024%20to%20Dec. |access-date=10 February 2024 |work=Reuters |date=12 December 2023}}</ref>

==Areas of business==
BAE Systems' biggest markets are the US 44%, UK 20%, Saudi Arabia 11% and Australia 4%, as of 2022.<ref name=2022_Annl_Report/>

===United Kingdom===
BAE Systems is the main supplier to the UK [[Ministry of Defence (United Kingdom)|MoD]]; in 2009/2010 BAE Systems companies in the list of Top 100 suppliers to the MoD received contracts totalling £3.98&nbsp;billion, with total revenue being higher when other subsidiary income is included.<ref>{{Cite news |title=MoD top 100 suppliers: How you each gave BAE Systems £64 last year |url=https://www.theguardian.com/news/datablog/2010/dec/01/mod-top-suppliers-bae |work=The Guardian |location=London |date=1 December 2010 |first=SA |last=Mathieson |access-date=16 December 2010 |archive-url= https://web.archive.org/web/20110122091933/http://www.guardian.co.uk/news/datablog/2010/dec/01/mod-top-suppliers-bae |archive-date= 22 January 2011 |url-status= live}}</ref> In comparison, the second largest supplier is [[Babcock International Group]] and its subsidiaries, with a revenue of £1.1&nbsp;billion from the MoD. Oxford Economic Forecasting states that in 2002 the company's UK businesses employed 111,578 people, achieved export sales of £3&nbsp;billion and paid £2.6&nbsp;billion in taxes. These figures exclude the contribution of Airbus UK.<ref>{{cite web |url= http://www.oxfordeconomics.com/Free/pdfs/BAEFinalReport.pdf |title= The economic contribution of BAE Systems to the UK and implications for defence procurement strategy |date= January 2004 |publisher= Oxford Economic Forecasting |page= 51 |access-date= 13 January 2007 |archive-url= https://web.archive.org/web/20070102121735/http://www.oxfordeconomics.com/Free/pdfs/BAEFinalReport.pdf |archive-date= 2 January 2007 |url-status= dead}}</ref>

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 [[Michael Turner (businessman)|Mike Turner]] said in 2006 "We had entered into contracts under the old competition rules that frankly we shouldn't have taken".<ref>{{Cite news |first= Angela |last= Jameson |title= BAE Systems chief reaps reward for years of fighting for revival |url= http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article735302.ece |work= The Times |location= London |date= 27 February 2006 |access-date= 9 November 2006 |archive-url= https://web.archive.org/web/20110611171023/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article735302.ece |archive-date= 11 June 2011 |url-status= dead}}</ref> These competition rules were introduced by [[Peter Levene, Baron Levene of Portsoken|Lord Levene]] during the 1980s to shift the burden of risk to the contractor and were in contrast to "cost plus contracts" where a contractor was paid for the value of its product plus an agreed profit.<ref name="basic">{{cite web |url= http://www.basicint.org/pubs/Papers/BP50.pdf |title= The UK Defence Industrial Strategy and Alternative Approaches |access-date=9 November 2006 |author=Dr Steven Schofield |date=March 2006 |work=Basic Papers: Occasional Papers on International Security Policy |page= 5 |archive-url= https://web.archive.org/web/20061108211358/http://www.basicint.org/pubs/Papers/BP50.pdf |archive-date= 8 November 2006}}</ref>

BAE Systems was operating in "the only truly open defence market",<ref>{{Cite news |first= Graham |last= Warwick |title= Best of British; For years BAE Systems' identity was British, but with its investment in foreign markets increasing, change is just around the corner |work=Flight International |publisher=Reed Elsevier Inc. |page= 48 |date= 6 June 2004}}</ref> which meant it was competing with US and European companies for British defence projects, while they were protected in their home markets. The US defence market is competitive, however largely between American firms, while foreign companies are excluded. In December 2005 the MoD published the Defence Industrial Strategy (DIS) which has been widely acknowledged to recognise BAE Systems as the UK's "national champion".<ref name="econdis">{{Cite news |title= BAE Systems: Changing places |url= http://www.economist.com/world/britain/displaystory.cfm?story_id=8091318 |newspaper=The Economist |publisher=The Economist Newspaper |date= 26 October 2006 |access-date=9 November 2006 |archive-url= https://web.archive.org/web/20061115211145/http://www.economist.com/world/britain/displaystory.cfm?story_id=8091318 |archive-date= 15 November 2006 |url-status= live}}</ref> The government claimed the DIS would "promote a sustainable industrial base, that retains in the UK those industrial capabilities needed to ensure national security."<ref>{{cite web |url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/272203/6697.pdf |title=Defence Industrial Strategy |author=<!--Not stated--> |date=December 2005 |website= assets.publishing.service.gov.uk|publisher=Ministry of Defence |access-date=2021-02-26 |quote=}}</ref>

After the publication of the DIS BAE Systems CEO Mike Turner said "If we didn't have the DIS and our profitability and the terms of trade had stayed as they were... then there had to be a question mark about our future in the UK".<ref>{{Cite news|first=Douglas |last=Barrie |title=British Defense Industrial Strategy Secures BAE Systems as UK. Champion |url=http://www.aviationweek.com/aw/generic/story_generic.jsp?channel=awst&id=news/12195p1.xml |archive-url=https://web.archive.org/web/20120404114426/http://www.aviationweek.com/aw/generic/story_generic.jsp?channel=awst&id=news%2F12195p1.xml |archive-date=4 April 2012 |work=Aviation Week & Space Technology |publisher=The McGraw-Hill Companies |date=7 December 2005 |access-date=9 November 2006 |url-status=dead}}</ref> Lord Levene said in the balance between value for money or maintaining a viable industrial base the DIS "tries as well as it can to steer a middle course and to achieve as much as it can in both directions. ...We will never have a perfect solution."<ref>{{Cite journal |date= Summer 2006 |title= New Deal for UK Industry |journal=Interavia |issue= 684 |pages= 10–17 |issn= 1423-3215}}</ref>

===United States===
{{main|BAE Systems Inc.}}

The attraction of MES to British Aerospace was largely its ownership of Tracor, a major American defence contractor.<ref name="integrated">{{Cite news |title=Getting it together? |newspaper=The Economist |publisher=The Economist Newspaper |date=20 July 2002 <!--|access-date=17 September 2007-->}}</ref>

BAE Systems Inc. now sells more to the US Department of Defense (DOD) than to the UK MoD.<ref>{{Cite news |first=David |last=Robertson |title=Milestone for BAE as its trade with America outstrips MoD business |url=http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article2231494.ece |work=The Times |location=London |date=10 August 2007 |access-date=7 September 2007 |archive-url=https://web.archive.org/web/20110611171055/http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article2231494.ece |archive-date=11 June 2011 |url-status=dead}}</ref> The company has been allowed to buy important defence contractors in the US, however its status as a UK company requires that its US subsidiaries are governed by American executives under [[Special Security Arrangement]]s. The company faces fewer impediments in this sense than its European counterparts, as there is a high [[Special Relationship (US-UK)|degree of integration]] between the US and UK defence establishments. BAE Systems' purchase of [[Lockheed Martin Aerospace Electronic Systems]] in November 2000 was described by [[John Hamre]], CEO of the [[Center for Strategic and International Studies]] and former [[United States Deputy Secretary of Defense|Deputy Secretary of Defense]], as "precedent setting" given the advanced and classified nature of many of that company's products.<ref>{{Cite news |first=Greg|last=Schneider|title=Arms Across the Atlantic; A Yank Leads the Former British Aerospace To the Top Tier of U.S. Defense Contractors|newspaper=The Washington Post |date=7 November 2000 <!--|access-date=14 September 2007-->}}</ref>

The possibility of a merger between BAE Systems Inc. and major North American defence contractors has long been reported, including [[Boeing]], [[General Dynamics]], [[Lockheed Martin]], and [[Raytheon]].<ref name="mergerships">{{cite news |url=http://news.bbc.co.uk/2/hi/business/3660139.stm |title=BAE shares rise after sales talk |work=BBC News |date=26 April 2004 |access-date=8 December 2005 |archive-url=https://web.archive.org/web/20040709142943/http://news.bbc.co.uk/2/hi/business/3660139.stm |archive-date=9 July 2004 |url-status=live}}</ref><ref>{{Cite news |first=James |last=Boxell|title=Armor opens Pentagon door for BAE|work=Financial Times|date=8 May 2007}}</ref><ref>{{Cite news |first=Peter|last=Spiegel|title=Boeing head rejects tie-up with BAE: New chief executive of US aerospace group says UK defence contractor is 'not an attractive target' |work=Financial Times |date=3 February 2004}}</ref>

===Rest of the world===
[[BAE Systems Australia]] is one of the largest defence contractors in Australia, having more than doubled in size with the acquisition of Tenix Defence in 2008.<ref>{{Cite news |first=Bradley|last=Perrett|title=BAE completes acquisition of Tenix Defense|work=Aerospace Daily & Defense|publisher=The McGraw-Hill Companies |date=2 July 2008}}</ref> The [[Al-Yamamah arms deal|Al Yamamah agreements]] between the UK and [[Saudi Arabia]] require "the provision of a complete defence package for the Kingdom of Saudi Arabia"; BAE Systems employs 5,300 people in the country.<ref>{{cite web |url=https://www.baesystems.com/en/our-company/our-businesses/bae-systems-saudi-arabia/our-people |title=Our People |author=<!--Not stated--> |website=www.baesystems.com |publisher=BAE Systems |access-date=2 November 2018 |archive-url=https://web.archive.org/web/20190406012638/https://www.baesystems.com/en/our-company/our-businesses/bae-systems-saudi-arabia/our-people |archive-date=6 April 2019 |url-status=live}}</ref> As of March 2022, BAE Systems employs over 7,000 people in Saudi Arabia and 75 per cent of the employees are Saudi nationals.<ref name=":0">{{Cite web |date=2022-03-11 |title=BAE Systems has Saudi Arabia's 2030 localization targets as its core goal |url=https://arab.news/vyz39 |access-date=2022-03-11 |website=Arab News |language=en}}</ref> BAE Systems' interests in Sweden are a result of the purchases of [[Alvis plc|Alvis Vickers]] and UDI, which owned Hägglunds and [[Bofors]] respectively; the companies are now part of [[BAE Systems AB]].<ref>{{cite web|url=http://www.afconsult.com/en/newsroom/press-releases/all/2008/af-signs-framework-agreement-with-bae-systems-bofors-ab/|title=ÅF signs framework agreement with BAE Systems Bofors AB|date=24 June 2008|publisher=AF Consult|access-date=25 February 2018|archive-url=https://web.archive.org/web/20180225210637/http://www.afconsult.com/en/newsroom/press-releases/all/2008/af-signs-framework-agreement-with-bae-systems-bofors-ab/|archive-date=25 February 2018|url-status=live}}</ref>

On 6 April 2022, BAE Systems announced the establishment of BAE Systems Japan, a subsidiary located in Akasaka, Tokyo, Japan. The new company will provide comprehensive cooperation with Japanese industry and aims to strengthen relations with the [[Ministry of Defense (Japan)|Japanese Ministry of Defense]] and the [[Japan Self-Defense Forces]].<ref>{{cite web|url=https://www.aviationwire.jp/archives/248539|title=英BAE、日本に子会社設立 防衛省と関係強化|access-date=Nov 4, 2022|lang=ja}}</ref>

In late August 2023, BAE Systems announced that it had opened an office in [[Ukraine]], and had signed an agreement for cooperation on the repair, spare parts, and production of [[L118 light gun|L119 howitzer]]s within Ukraine.<ref>{{cite web |title=Twitter account of Oleksii Reznikov, Minister of Defence of Ukraine |url=https://twitter.com/oleksiireznikov/status/1697220765504897041 |website=Twitter.com |publisher=Twitter |access-date=31 August 2023}}</ref>

On 4 January 2024, BAE Systems announced an initial agreement, potentially worth up to $50 million, to resume production of titanium structures for the [[M777 howitzer]] for the U.S. Army, with the first deliveries expected in 2025.<ref>{{Cite web |last=Sandle |first=Paul |date=4 January 2024 |title=BAE Systems signs US Army deal for M777 gun structures |url=https://www.reuters.com/business/aerospace-defense/bae-systems-signs-us-army-deal-m777-gun-structures-2024-01-04/ |url-status=live |archive-url=https://web.archive.org/web/20240104124909/https://www.reuters.com/business/aerospace-defense/bae-systems-signs-us-army-deal-m777-gun-structures-2024-01-04/ |archive-date=4 January 2024 |access-date=4 January 2024 |website=Reuters}}</ref>

==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%.<ref name=2022_Annl_Report/>

==Organisation==
[[File:FarnboroughAerospaceCentre panorama.jpg|thumb|BAE Systems has offices in the Farnborough Aerospace Centre business park. Senior managers are based at the [[registered office]] in [[1 Carlton Gardens|Carlton Gardens]], [[City of Westminster]].]]
[[File:6 Carlton Gardens, London, SW1Y 5AD, United Kingdom.JPG|thumb|6 Carlton Gardens, London]]

BAE Systems has its head office and its [[registered office]] in [[City of Westminster]], London.<ref>"[http://www.baesystems.com/CompanyInfo/index.htm Company Info] {{Webarchive|url=https://web.archive.org/web/20110902060537/http://www.baesystems.com/CompanyInfo/index.htm |date=2 September 2011}}." BAE Systems. Retrieved 31 August 2011. "Registered office 6 Carlton Gardens, London, SW1Y 5AD, United Kingdom"</ref><!--Registered office--><ref>"[http://www.baesystems.com/WorldwideLocations/uk_locations/Locations/London/autoGen_107121164456.html London > BAE Systems plc]." BAE Systems. Retrieved 31 August 2011. "BAE Systems plc Address London – Stirling Square Carlton Gardens London SW1Y 5AD United Kingdom " {{webarchive |url=https://web.archive.org/web/20160104143100/http://www.baesystems.com/WorldwideLocations/uk_locations/Locations/London/autoGen_107121164456.html |date=4 January 2016}}</ref><!--Head office--> In addition to its central London offices, it has an office in [[Farnborough, Hampshire|Farnborough]], Hampshire, that houses functional specialists and support functions.<ref>"[https://web.archive.org/web/20120404114426/http://www.aviationweek.com/aw/generic/story_generic.jsp?channel=awst&id=news%2F12195p1.xml Head Office]." BAE Systems. Retrieved 31 August 2011. "As you might expect, our London Head Office is the base for our Executive Board and for other senior group managers in strategic roles." and "Head Office is located in Central London but also has a number of support functions and functional specialists based in Farnborough, Hampshire."</ref>

==Corporate governance==
BAE Systems' Chair is [[Cressida Hogg]], CBE. The executive directors are [[Charles Woodburn]] (CEO), Brad Greve and Tom Arsenault. The non-executive directors are Crystal E. Ashby, [[Elizabeth Corley]], [[Chris Grigg]], [[Ewan Kirk]], Ian Tyler, Nicole Piasecki, Stephen Pearce, Jane Griffiths and Nick Anderson.<ref name=":1">{{cite web |url=https://www.baesystems.com/en/our-company/our-people/board-of-directors |title=Board of Directors |access-date=15 November 2021|publisher=BAE Systems plc}}</ref>

The company's first CEO, John Weston, was forced to resign in 2002 in a boardroom "coup" and was replaced by Mike Turner.<ref name=":2">{{Cite news |first= Richard |last= Wachman |title= A very British coup at BAE |url= https://www.theguardian.com/business/2002/mar/31/theobserver.observerbusiness9 |work= The Observer |location= London |publisher= Guardian Newspapers |date= 21 March 2002 |access-date= 27 October 2006 |archive-url= https://web.archive.org/web/20140613065458/http://www.theguardian.com/business/2002/mar/31/theobserver.observerbusiness9 |archive-date= 13 June 2014 |url-status= live}}</ref> ''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.<ref name="Business">{{Cite news |first=Ian|last= Watson|title=Weston is blown away in shootout at Dukes Hotel|work=The Business|publisher=Sunday Business Group|page=10|date=7 April 2002}}</ref> 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".<ref>{{Cite news |first=Richard |last=Northedge|title=Turner Gets Ready For War|work=The Business|date=7 July 2002}}</ref>

It is understood that Turner had a poor working relationship with senior MoD officials, for example with former Defence Secretary [[Geoff Hoon]]. The first meeting between Oliver and Hoon was said to have gone well; a MoD official commented "He is a man we can do business with".<ref>{{Cite news |first=Oliver |last=Morgan |url=https://www.theguardian.com/business/2004/jul/04/observerbusiness.baesystemsbusiness |title=BAE's Olver demands 'root and branch' change |work=The Guardian |location=London |publisher=Guardian Newspapers |date=4 July 2005 |access-date=8 December 2005 |archive-url=https://web.archive.org/web/20140322045348/http://www.theguardian.com/business/2004/jul/04/observerbusiness.baesystemsbusiness |archive-date=22 March 2014 |url-status=live}}</ref> It has been suggested that relations between Turner and Olver were tense.<ref>{{Cite news |first=Christopher |last=Hope |url=https://www.telegraph.co.uk/finance/2917330/BAE-chief-admits-clashing-with-chairman-over-Europe.html |title=BAE chief admits clashing with chairman over Europe |work=The Daily Telegraph |location=London |date=14 June 2005 |access-date=5 December 2005 |archive-url=https://web.archive.org/web/20121111044322/http://www.telegraph.co.uk/finance/2917330/BAE-chief-admits-clashing-with-chairman-over-Europe.html |archive-date=11 November 2012 |url-status=live}}</ref> On 16 October 2007 the company announced that Mike Turner would retire in August 2008. ''The Times'' called his departure plans "abrupt" and a "shock", given previous statements that he wished to retire in 2013 at the age of 65.<ref>{{Cite news |first=Miles |last=Costello |title=Mike Turner abruptly quits as BAE's chief |url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article2669340.ece |work=The Times |location=London |date=16 October 2007 |access-date=16 October 2007 |archive-url=https://web.archive.org/web/20110611171201/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article2669340.ece |archive-date=11 June 2011 |url-status=dead}}</ref> Despite suggestions that BAE Systems would prefer an American CEO due to the increasing importance of the United States defence market to the company and the opportunity to make a clean break from corruption allegations and investigations related to the Al-Yamamah contracts, the company announced on 27 June 2008, that it had selected the company's chief operating officer, [[Ian King (businessman)|Ian King]], to succeed Turner with effect from 1 September 2008. The ''Financial Times'' noted that King's career at Marconi distances him from the British Aerospace-led Al Yamamah project.<ref name="ftbaesearch">{{Cite news |last= Fidler |first= Stephen |title= BAE's search for successor to Turner ends in its own backyard |work=Financial Times |date= 28 June 2008}}</ref>

Charles Woodburn succeeded Ian King as CEO on 1 July 2017. Woodburn joined BAE Systems in May 2016 as Chief Operating Officer and Executive Board Director following over 20 years' international experience in senior management positions in the oil and gas industry.<ref name="Ian King, Chief Executive, BAE Systems plc, has today informed the Board that he will retire on 30 June 2017.">{{cite web |url=http://www.baesystems.com/en/article/notice-of-directorate-change |title=Ian King (CEO) to retire 30 June 2017 |publisher=BAE Systems |date=22 February 2017 |access-date=3 March 2017 |archive-url=https://web.archive.org/web/20170304040111/http://www.baesystems.com/en/article/notice-of-directorate-change |archive-date=4 March 2017 |url-status=live}}</ref>

===Senior leadership===
* ''Chair:'' [[Cressida Hogg]] (since 2023)<ref name=":1" />
* ''Chief Executive:'' [[Charles Woodburn]] (since 2017)<ref name=":1" />

====List of former chairmen====
# [[Richard Evans (businessman)|Sir Richard Evans]] (1999–2004)<ref name="ftBAeDASA" />
# [[Dick Olver|Sir Dick Olver]] (2004–2014)<ref name="baelandshift" />
# Sir [[Roger Carr (businessman)|Roger Carr]] (2014-2023) <ref name=":1" />

====List of former chief executives====
# [[John Weston (businessman)|John Weston]] (1999–2002)<ref name=":2" />
# [[Michael Turner (businessman)|Michael Turner]] (2002–2008)<ref name=":2" />
# [[Ian King (businessman)|Ian King]] (2008–2017)<ref name="Ian King, Chief Executive, BAE Systems plc, has today informed the Board that he will retire on 30 June 2017." />

==Financial information==
Financial information for the company is as follows:<ref name=2022_Annl_Report/><ref name="prelim09"/><ref name="findata">{{cite web |url=http://www.investis.com/investors/downloads/annrep2005.pdf |title=BAE Systems 2005 Annual Report |access-date=13 March 2006 |publisher=BAE Systems |page=36 |url-status=dead |archive-url=https://web.archive.org/web/20070616024942/http://www.investis.com/investors/downloads/annrep2005.pdf |archive-date=16 June 2007}}</ref><ref>{{cite web |url=http://bae-systems-investor-relations-v2.production.investis.com/~/media/Files/B/BAE-Systems-Investor-Relations-V2/PDFs/content/statement-2011.pdf |title=BAE Systems: Preliminary Results 2011 |access-date=24 March 2012 |url-status=dead |archive-url=https://web.archive.org/web/20130605233921/http://bae-systems-investor-relations-v2.production.investis.com/~/media/Files/B/BAE-Systems-Investor-Relations-V2/PDFs/content/statement-2011.pdf |archive-date=5 June 2013}}</ref><ref name="prelim">{{cite web |url= http://www.investis.com/investors/downloads/prelim2008.pdf |title= BAE Systems 2008 Preliminary results |access-date= 7 March 2009 |date= 19 February 2009 |publisher= BAE Systems |page= 1 |archive-url= https://web.archive.org/web/20090318125011/http://www.investis.com/investors/downloads/prelim2008.pdf |archive-date= 18 March 2009 |url-status= dead}}</ref><ref>[https://web.archive.org/web/20071127160435/http://production.investis.com/investors/news/rp/rp2003/ar2003/ar03.pdf BAE Systems 2002 Annual Report] p.76 BAE Systems. Retrieved 1 March 2007.</ref>

{| class="wikitable" style="font-size:95%; margin:auto;"
|-
! Year ended
! Turnover (£&nbsp;million)
! Profit/(loss) before tax (£m)
! Net profit/(loss) (£m)
! [[Earnings per share|EPS]] (p)
|-
| 31 December 2023
| 23,078
| 2,326
| 1,940
| 61.3
|-
| 31 December 2022
| 21,258
| 1,989
| 1,674
| 51.1
|-
| 31 December 2021
| 19,521
| 2,110
| 1,912
| 55.2
|-
| 31 December 2020
| 19,277
| 1,596
| 1,371
| 40.7
|-
| 31 December 2019
| 18,305
| 1,626
| 1,532
| 46.4
|-
| 31 December 2018
| 16,821
| 1,224
| 1,033
| 31.3
|-
| 31 December 2017
| 18,322
| 1,134
| 884
| 26.8
|-
| 31 December 2016
| 17,790
| 1,151
| 938
| 28.8
|-
| 31 December 2015
| 17,904
| 1,090
| 943
| 29.0
|-
| 31 December 2014
| 16,637
| 882
| 752
| 23.4
|-
| 31 December 2013
| 18,180
| 422
| 176
| 5.2
|-
| 31 December 2012
| 17,834
| 1,369
| 1,079
| 33.0
|-
| 31 December 2011
| 19,154
| 1,466
| 1,256
| 36.9
|-
| 31 December 2010
| 22,392
| 1,444
| 1,081
| 30.5
|-
| 31 December 2009
| 22,415
| 282
| (45)
| (1.9)
|-
| 31 December 2008
| 18,543
| 2,371
| 1,768
| 49.6
|-
| 31 December 2007
| 15,710
| 1,477
| 1,177
| 26.0
|-
| 31 December 2006
| 13,765
| 1,207
| 1,054
| 19.9
|-
| 31 December 2005{{efn|name=airbus}}
| 12,581
| 909
| 761
| 13.9
|-
| 31 December 2005
| 15,411
| 845
| 555
| 22.5
|-
| 31 December 2004
| 13,222
| 730
| 3
| 17.4
|-
| 31 December 2003{{efn|name=gaap}}
| 15,572
| 233
| 8
| 16.6
|-
| 31 December 2002{{efn|name=gaap}}
| 12,145
| (616)
| (686){{efn|name=nimrod}}
| 17.3
|-
| 31 December 2001{{efn|name=gaap}}
| 13,138
| 70
| (128)
| 23.4
|-
| 31 December 2000{{efn|name=gaap}}
| 12,185
| 179
| (19)
| 18.8
|-
| 31 December 1999{{efn|name=gaap}}
| 8,929
| 459
| 328
| 29.4
|}
{{notelist|refs=
{{efn|name=airbus|Restated to exclude Airbus contributions. Included for comparison.}}
{{efn|name=gaap|Data prepared using UK [[Generally Accepted Accounting Principles|GAAP]] guidelines. Recent data prepared using [[International Financial Reporting Standards]].}}
{{efn|name=nimrod|Reflects £750&nbsp;million charges for problems with Nimrod MRA4 (£500&nbsp;million) and ''Astute''-class submarine (£250&nbsp;million) programmes.}}
}}

==Corruption investigations==
===Serious Fraud Office===
BAE Systems has been investigated by the [[Serious Fraud Office (United Kingdom)|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.<ref name= "SevenCountries">{{Cite news |first= Paddy |last= Allen |title=Seven countries where BAE have been undec investigated – Bribing for Britain? |date=1 October 2009 |url= https://www.theguardian.com/world/interactive/2007/jun/07/bae.global.investigations |work=The Guardian |location=London |access-date=24 October 2009 |archive-url= https://web.archive.org/web/20091004210540/http://www.guardian.co.uk/world/interactive/2007/jun/07/bae.global.investigations |archive-date= 4 October 2009 |url-status= live}}</ref><ref name="GordonIntervene">{{Cite news |first=David |last=Leigh |title= BAe bribery case: MP urges Gordon Brown to intervene |date= 12 October 2009 |url= https://www.theguardian.com/world/2009/oct/12/bae-bribery-case-brown-intervene |work=The Guardian |location=London |access-date=24 October 2009 |archive-url= https://web.archive.org/web/20091015062957/http://www.guardian.co.uk/world/2009/oct/12/bae-bribery-case-brown-intervene |archive-date= 15 October 2009 |url-status= live}}</ref><ref name="solicitorgeneral">{{Cite news |title= BAE in several corruption probes |url= http://news.bbc.co.uk/1/hi/business/6339625.stm |publisher=BBC |date= 7 February 2007 |access-date=15 February 2007 |archive-url= https://web.archive.org/web/20070219035846/http://news.bbc.co.uk/1/hi/business/6339625.stm |archive-date= 19 February 2007 |url-status= live}}</ref> 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.<ref>{{cite web |url=http://investors.baesystems.com/~/media/Files/B/Bae-Systems-Investor-Relations-V3/PDFs/ims/2006-corporate-responsibility-report.pdf |title=Corporate Responsibility Report 2006 |access-date=7 September 2007 |publisher=BAE Systems plc |archive-url=https://web.archive.org/web/20161130061707/http://investors.baesystems.com/~/media/Files/B/Bae-Systems-Investor-Relations-V3/PDFs/ims/2006-corporate-responsibility-report.pdf |archive-date=30 November 2016 |url-status=live}}</ref> 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".<ref>{{cite news |title=Lord Woolf to head BAE's review |work=BBC News |date=11 June 2007 |url=http://news.bbc.co.uk/1/hi/business/6739805.stm |access-date=12 March 2009 |archive-url=https://web.archive.org/web/20080420083048/http://news.bbc.co.uk/1/hi/business/6739805.stm |archive-date=20 April 2008 |url-status=live}}</ref> The report, ''Ethical business conduct in BAE Systems plc – the way forward'', made 23 recommendations, measures which the company committed to implement. The finding stated that "in the past BAE did not pay sufficient attention to ethical standards in the way it conducted business", and was described by the BBC as "an embarrassing admission".<ref>{{cite news |title=BAE review seeks bribery controls |work=BBC News |date=6 May 2008 |url=http://news.bbc.co.uk/1/hi/business/7384937.stm |access-date=12 March 2009 |archive-url=https://web.archive.org/web/20080511101406/http://news.bbc.co.uk/1/hi/business/7384937.stm |archive-date=11 May 2008 |url-status=live}}</ref>

In September 2009, the SFO announced that it intended to prosecute BAE Systems for offences relating to overseas corruption. ''[[The Guardian]]'' claimed that a penalty more than £500 million might be an acceptable settlement package.<ref>{{Cite news|title=SFO seeks BAE prosecution over bribery claims |url=https://www.theguardian.com/world/2009/oct/01/bae-sfo-bribery-allegations-prosecution |work=The Guardian |location=UK |date=1 October 2009 |first=David |last=Leigh |access-date=1 October 2009 |archive-url=https://web.archive.org/web/20091004210503/http://www.guardian.co.uk/world/2009/oct/01/bae-sfo-bribery-allegations-prosecution |archive-date=4 October 2009 |url-status=live}}</ref> On 5 February 2010, BAE Systems agreed to pay criminal fines of £257 million (US$400 million) to the US and £30 million to the UK.<ref>{{Cite news |title=BAE admits guilt over corrupt arms deals |url=https://www.theguardian.com/world/2010/feb/05/bae-systems-arms-deal-corruption |work=The Guardian |location=UK |date=6 February 2010 |first=David |last=Leigh |access-date=7 December 2017 |archive-url=https://web.archive.org/web/20100209002847/http://www.guardian.co.uk/world/2010/feb/05/bae-systems-arms-deal-corruption |archive-date=9 February 2010 |url-status=live}}</ref> The $400 million fine was a result of a plea bargain with the [[US Department of Justice]] (DOJ) whereby BAE Systems was convicted of felony conspiracy to defraud the United States government.  This was one of the largest fines in the history of the DOJ. Judge Bates said the company's conduct involved "deception, duplicity and knowing violations of law, I think it's fair to say, on an enormous scale".<ref>{{Cite news |url=https://www.justice.gov/opa/pr/2010/March/10-crm-209.html |title=BAE Systems PLC Pleads Guilty and Ordered to Pay $400&nbsp;Million Criminal Fine |date=1 March 2010 |work=US Department of Justice press release |access-date=18 December 2010 |location=Washington, DC |archive-url= https://web.archive.org/web/20101128164521/http://www.justice.gov/opa/pr/2010/March/10-crm-209.html |archive-date= 28 November 2010 |url-status= live}}</ref><ref>{{Cite news |url=https://www.independent.co.uk/news/business/news/bae-protesters-win-sfo-injunction-1914892.html |title=BAE protesters win SFO injunction |first= Alistair |last= Dawber |date=3 March 2010 |work=The Independent |location=UK |access-date=14 June 2010 |archive-url= https://web.archive.org/web/20100306234822/http://www.independent.co.uk/news/business/news/bae-protesters-win-sfo-injunction-1914892.html |archive-date=6 March 2010 |url-status= live}}</ref> BAE Systems did not directly admit to bribery, and is thus not internationally blacklisted from future contracts. Some of the £30 million penalty the company will pay in fines to the UK will be paid ''ex gratia'' for the benefit of the people of Tanzania.<ref>{{Cite news|title=BAE admits guilt over corrupt arms deals |url= https://www.theguardian.com/world/2010/feb/05/bae-systems-arms-deal-corruption |work= The Guardian |location=UK |date= 6 February 2010 |access-date=20 February 2010 |first=David |last=Leigh |archive-url= https://web.archive.org/web/20100209002847/http://www.guardian.co.uk/world/2010/feb/05/bae-systems-arms-deal-corruption |archive-date=9 February 2010 |url-status= live}}</ref> On 2 March 2010, [[Campaign Against Arms Trade]] (CAAT) and [[The Corner House (organisation)|Corner House Research]] were successful in gaining a High Court injunction on the SFO's settlement with BAE Systems; however in April 2010 the two organisations withdrew their application for a [[Judicial review in English law|judicial review]].<ref>{{Cite web|date=8 April 2010|title=Campaigners Continue to Raise Concerns About SFO-BAE Settlement Process|url=https://caat.org.uk/news/2010-04-08-2/|access-date=30 December 2020|website=caat.org.uk}}</ref>

===Saudi Arabia===
[[File:Parking RSAF Tornado in 1991.jpg|thumb|One of 24 [[Panavia Tornado ADV]]s delivered to the [[Royal Saudi Air Force]] as part of the [[Al Yamamah arms sales]]]]
{{main|Al-Yamamah arms deal}}

Both BAE Systems and its predecessor (BAe) have long been the subject of allegations of bribery in relation to its business in Saudi Arabia. The UK [[National Audit Office (United Kingdom)|National Audit Office]] (NAO) investigated the Al Yamamah contracts and has so far not published its conclusions, the only NAO report ever to be withheld.<ref>{{Cite news |first=Gideon |last=Burrows |url=https://www.theguardian.com/world/2003/aug/08/saudiarabia.usa |title=Out of arms way |work=The Guardian |location=London |publisher=Guardian Newspapers |date=8 August 2003 |access-date=1 October 2007 |archive-url=https://web.archive.org/web/20130827062401/http://www.theguardian.com/world/2003/aug/08/saudiarabia.usa |archive-date=27 August 2013 |url-status=live}}</ref> The MoD has stated "The report remains sensitive. Disclosure would harm both international relations and the UK's commercial interests."<ref name="SFO">{{Cite news |first=David |last=Leigh |author2=Evans, Rob |url=https://www.theguardian.com/uk/2006/jul/25/houseofcommons.armstrade |title=Parliamentary auditor hampers police inquiry into arms deal |work=The Guardian |location=London |publisher=Guardian Newspapers |date=25 July 2006 |access-date=12 August 2006 |archive-url=https://web.archive.org/web/20130830070627/http://www.theguardian.com/uk/2006/jul/25/houseofcommons.armstrade |archive-date=30 August 2013 |url-status=live}}</ref> The company has been accused of maintaining a £60&nbsp;million Saudi [[slush fund]]. In November 2006, Saudi Arabia put pressure on the British government to end the SFO investigation by suspending negotiations over a new deal for seventy-two Typhoon fighter jets.<ref>{{Cite book|title=AngloArabia: Why Gulf Wealth Matters to Britain |publisher=Polity Press |last=David|first=Wearing|isbn=9781509532032|location=Cambridge, UK|pages=P168-169|oclc=1027067212|date= 28 November 2018}}</ref> On 14 December 2006 it was announced that the SFO was "discontinuing" its investigation into the company. It stated that representations to its director and the [[Attorney General for England and Wales|Attorney General]] [[Peter Goldsmith, Baron Goldsmith|Lord Goldsmith]] had led to the conclusion that the wider public interest "to safeguard national and international security" outweighed any potential benefits of further investigation.<ref>{{cite news |title= Saudi defence deal probe ditched |url= http://news.bbc.co.uk/1/hi/business/6181949.stm|work=BBC News |date= 15 December 2006 |access-date=2 March 2007 |archive-url= https://web.archive.org/web/20070209004812/http://news.bbc.co.uk/1/hi/business/6181949.stm |archive-date= 9 February 2007 |url-status= live}}</ref> The termination of the investigation has been controversial.<ref>{{cite news |title= 'Great damage' of BAE deal ruling |url= http://news.bbc.co.uk/1/hi/uk_politics/6319833.stm|work=BBC News |date= 1 February 2007 |access-date=2 February 2007 |archive-url= https://web.archive.org/web/20070203050908/http://news.bbc.co.uk/1/hi/uk_politics/6319833.stm |archive-date= 3 February 2007 |url-status= live}}</ref> In June 2007, the BBC's [[Panorama (TV series)|Panorama]] alleged BAE Systems "paid hundreds of millions of pounds to the ex-Saudi ambassador to the US, [[Prince Bandar bin Sultan]]" in return for his role in the Al Yamamah deals.<ref>{{cite news |title=Saudi prince 'received arms cash' |url=http://news.bbc.co.uk/2/hi/business/6728773.stm |work=BBC News |date=7 June 2007|access-date=8 September 2007 |archive-url= https://web.archive.org/web/20071007015511/http://news.bbc.co.uk/2/hi/business/6728773.stm |archive-date= 7 October 2007 |url-status= live}}</ref> In late June 2007 the DOJ began a formal investigation into BAE's compliance with anti-corruption laws.<ref>{{Cite news|first=David|last=Robertson|author2=Baldwin, Tom|title=US Justice Department to scrutinise BAE's Saudi deals|url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article1991236.ece|work=The Times|location=London|date=27 June 2007|access-date=7 September 2007|archive-url=https://web.archive.org/web/20110616015546/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article1991236.ece|archive-date=16 June 2011|url-status=dead}}</ref> On 19 May 2008 BAE Systems confirmed that its CEO Mike Turner and non-executive director [[Nigel Rudd]] had been detained "for about 20 minutes" at two US airports the previous week and that the DOJ had issued "a number of additional subpoenas in the US to employees of BAE Systems plc and BAE Systems Inc as part of its ongoing investigation".<ref name="dojdetentions">{{Cite news |first=Suzy |last=Jagger |title=BAE accused of being uncooperative with US investigators |url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article3964882.ece |work=The Times |location=London |date=19 May 2008 |access-date=19 May 2008 |archive-url=https://web.archive.org/web/20110612062912/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article3964882.ece |archive-date=12 June 2011 |url-status=dead}}</ref> ''The Times'' suggested that such "humiliating behaviour by the DOJ" is unusual toward a company that is co-operating fully.<ref name="dojdetentions"/>

A judicial review of the decision by the SFO to drop the investigation was granted on 9 November 2007.<ref>{{cite news |title=Court to study BAE fraud decision |url=http://news.bbc.co.uk/1/hi/business/7086997.stm |work=BBC News |date=9 November 2007 |access-date=4 December 2007 |archive-url= https://web.archive.org/web/20090413185804/http://news.bbc.co.uk/1/hi/business/7086997.stm|archive-date=13 April 2009 |url-status= live}}</ref> On 10 April 2008 the High Court ruled that the SFO "acted unlawfully" by dropping its investigation.<ref>{{cite news |title=SFO unlawful in ending BAE probe |url= http://news.bbc.co.uk/1/hi/business/7339231.stm|work=BBC News |date= 10 April 2008|access-date=18 April 2008 |archive-url= https://web.archive.org/web/20080415132726/http://news.bbc.co.uk/1/hi/business/7339231.stm |archive-date= 15 April 2008 |url-status= live}}</ref> ''The Times'' described the ruling as "one of the most strongly worded judicial attacks on government action" which condemned how "ministers 'buckled' to 'blatant threats' that Saudi cooperation in the fight against terrorism would end unless the ...investigation was dropped."<ref>{{Cite news |first=Frances |last=Gibb |author2=Webster, Philip |title=High Court rules that the halt to BAE investigation was 'unlawful, a threat to British justice' |url=http://www.timesonline.co.uk/tol/news/politics/article3724411.ece |work=The Times |location=London |date=11 April 2008 |access-date=27 April 2008 |archive-url=https://web.archive.org/web/20110429094628/http://www.timesonline.co.uk/tol/news/politics/article3724411.ece |archive-date=29 April 2011 |url-status=dead}}</ref> On 24 April the SFO was granted leave to appeal to the House of Lords against the ruling.<ref>{{cite news |title=SFO allowed to contest BAE ruling |url= http://news.bbc.co.uk/1/hi/business/7364622.stm|work=BBC News |date= 24 April 2008 |access-date=24 April 2008 |archive-url= https://web.archive.org/web/20080429201527/http://news.bbc.co.uk/1/hi/business/7364622.stm |archive-date= 29 April 2008 |url-status= live}}</ref> There was a two-day hearing before the Lords on 7 and 8 July 2008.<ref>{{Cite news |first=Rob|last=Evans|author2=Leigh, David |title=Government 'did not try' to fend off Saudi inquiry threats |url=https://www.theguardian.com/politics/2008/jul/09/houseofcommons.saudiarabia |work=The Guardian |location=London |publisher=Guardian Newspapers |date=9 July 2008 |access-date=25 July 2008 |archive-url= https://web.archive.org/web/20080712224810/http://www.guardian.co.uk/politics/2008/jul/09/houseofcommons.saudiarabia |archive-date= 12 July 2008 |url-status= live}}</ref> On 30 July the House of Lords unanimously overturned the High Court ruling, stating that the decision to discontinue the investigation was lawful.<ref>{{cite news |title=Lords overturn Saudi probe ruling |url= http://news.bbc.co.uk/1/hi/business/7532714.stm|work=BBC News |date= 30 July 2008 |access-date=30 July 2008 |archive-url= https://web.archive.org/web/20081022041237/http://news.bbc.co.uk/1/hi/business/7532714.stm|archive-date=22 October 2008 |url-status= live}}</ref>

===Others===
[[File:Regele Ferdinand Frigate 22.jpg|thumb|150px|[[HMS Coventry (F98)|HMS ''Coventry'']] was one of two frigates sold to Romania.]]

In September 2005 ''The Guardian'' reported that banking records showed that BAE Systems paid £1&nbsp;million to [[Augusto Pinochet]], the former Chilean dictator.<ref name="Pinochet">{{Cite news |first1= David |last1= Leigh |last2= Evans |first2= Rob |title= Revealed: BAE's secret £1m to Pinochet |url= https://www.theguardian.com/world/2005/sep/15/bae.freedomofinformation |work= The Guardian |location= UK |publisher= Guardian Newspapers |date= 15 September 2005 |access-date= 27 October 2006 |archive-url= https://web.archive.org/web/20130829175630/http://www.theguardian.com/world/2005/sep/15/bae.freedomofinformation |archive-date= 29 August 2013 |url-status= live}}</ref> ''The Guardian'' has also reported that "clandestine arms deals" have been under investigation in Chile and the UK since 2003 and that British Aerospace and BAE Systems made a number of payments to Pinochet advisers.<ref>{{Cite news |first= Jonathan |last= Franklin |url= https://www.theguardian.com/world/2006/jul/12/chile.drugstrade |title= Pinochet and son deny selling cocaine to Europe and US |work= The Guardian |location= London |publisher= Guardian Newspapers |date= 12 July 2006 |access-date= 14 August 2006 |archive-url= https://web.archive.org/web/20130830071946/http://www.theguardian.com/world/2006/jul/12/chile.drugstrade |archive-date= 30 August 2013 |url-status= live}}</ref>

BAE Systems is alleged to have paid "secret offshore commissions" of over £7&nbsp;million to secure the sale of [[HMS London (F95)|HMS ''London'']] and [[HMS Coventry (F98)|HMS ''Coventry'']] to the [[Romanian Navy]]. The company received a £116&nbsp;million contract for the refurbishment of the ships prior to delivery;<ref>{{Cite news |first= David |last=Leigh |author2=Evans, Rob |url= https://www.theguardian.com/world/2006/jun/15/bae.armstrade |title=Bribery inquiry may force £7m refund to Romania |work=The Guardian |location= London |publisher=Guardian Newspapers |date=15 July 2006 |access-date=14 August 2006 |archive-url= https://web.archive.org/web/20130830053939/http://www.theguardian.com/world/2006/jun/15/bae.armstrade |archive-date=30 August 2013 |url-status=live}}</ref> however the British taxpayer only received the scrap value of £100,000 each from the sale.<ref>David Leigh and Rob Evans, [https://www.theguardian.com/armstrade/story/0,,1796377,00.html "We paid three times too much for UK frigates, Romania says"]. ''[[The Guardian]]'', 13 June 2006.</ref>

BAE Systems ran into controversy in 2002 over the abnormally high cost of a radar system sold to [[Tanzania]].<ref>{{cite news |title= Tanzania could seek radar refund |url= http://news.bbc.co.uk/1/hi/world/africa/6324169.stm |work=BBC News |date= 2 February 2007 |access-date=19 February 2007 |archive-url= https://web.archive.org/web/20070212160344/http://news.bbc.co.uk/1/hi/world/africa/6324169.stm |archive-date= 12 February 2007 |url-status= live}}</ref><ref name="gdn101219">{{cite news|last=Leigh|first=David|date=19 December 2010|title=WikiLeaks cables: Tanzania official investigating BAE 'fears for his life'|work=The Guardian|location=UK|url=https://www.theguardian.com/world/2010/dec/19/wikileaks-cables-tanzania-bae-fears|url-status=live|access-date=11 December 2016|archive-url=https://web.archive.org/web/20170209073156/https://www.theguardian.com/world/2010/dec/19/wikileaks-cables-tanzania-bae-fears|archive-date=9 February 2017}}</ref> The sale was criticised by several opposition MPs and the [[World Bank]];<ref>{{cite news |title= Tanzania radar sale 'waste of cash' |url= http://news.bbc.co.uk/1/hi/uk_politics/2044206.stm |work= BBC News |date= 14 June 2002 |access-date= 19 February 2007 |archive-url= https://web.archive.org/web/20021028010503/http://news.bbc.co.uk/1/hi/uk_politics/2044206.stm |archive-date= 28 October 2002 |url-status= live}}</ref> [[Secretary of State for International Development]] [[Clare Short]] declared that BAE Systems had "ripped off" developing nations.<ref>[http://news.bbc.co.uk/2/hi/business/8284073.stm "BAE Systems faces bribery charges"] {{Webarchive|url= https://web.archive.org/web/20091002003652/http://news.bbc.co.uk/2/hi/business/8284073.stm |date=2 October 2009}}. BBC News, 1 October 2009.</ref><ref>{{Cite news |title=BAE's government-backed rip-off |url= https://www.theguardian.com/commentisfree/2009/oct/01/bae-deal-blair-sfo |work=The Guardian |location= UK |date=1 October 2009 |access-date=1 October 2009 |first=Clare |last=Short |archive-url= https://web.archive.org/web/20091004205504/http://www.guardian.co.uk/commentisfree/2009/oct/01/bae-deal-blair-sfo |archive-date= 4 October 2009 |url-status= live}}</ref>

In January 2007, details of an investigation by the SFO into BAE Systems' sales tactics in regard to South Africa were reported, highlighting the £2.3&nbsp;billion deal to supply Hawk trainers and Gripen fighters as suspect.<ref>{{cite news |title= BAE South African deal 'probed' |url= http://news.bbc.co.uk/1/hi/business/6255725.stm |work=BBC News |date= 12 January 2007 |access-date=12 January 2007 |first=Martin |last=Plaut |archive-url= https://web.archive.org/web/20070116053801/http://news.bbc.co.uk/1/hi/business/6255725.stm |archive-date= 16 January 2007 |url-status= live}}</ref> In May 2011, as allegations of bribery behind South Africa's Gripen procurement continued, the company's partner Saab AB issued strong denials of any illicit payments being made; however in June 2011 Saab announced that BAE Systems had made unaccounted payments of roughly $3.5&nbsp;million to a consultant; this revelation prompted South African opposition parties to call for a renewed inquiry.<ref>Zander, Christina. [https://www.wsj.com/articles/SB10001424052748704904604576334822960474968 "Saab Denies South African Bribe Claim".] {{Webarchive|url= https://web.archive.org/web/20170709033747/https://www.wsj.com/articles/SB10001424052748704904604576334822960474968 |date=9 July 2017}} ''The Wall Street Journal''. 20 May 2011.</ref><ref>[https://www.bbc.co.uk/news/world-africa-13813281 "Call for new South African arms deal investigation."] {{Webarchive|url= https://web.archive.org/web/20121223173023/http://www.bbc.co.uk/news/world-africa-13813281 |date=23 December 2012}} ''BBC News'', 17 June 2011.</ref> The Gripen's procurement by the Czech Republic was also under investigation by the SFO in 2006 over allegations of bribery.<ref name="Guardian 292006">{{Cite news|date=29 November 2006|title=FAQ: The investigation|work=The Guardian|publisher=Guardian Newspapers|location=London|url=https://www.theguardian.com/uk/2006/nov/29/business.politics1|url-status=live|access-date=16 November 2007|archive-url=https://web.archive.org/web/20130830220148/http://www.theguardian.com/uk/2006/nov/29/business.politics1|archive-date=30 August 2013}}</ref>

==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 [[Campaign Against Arms Trade|CAAT]] and their activities.<ref>{{Cite news |title= How the woman at No 27 ran spy network for an arms firm |work=The Sunday Times |location=UK |publisher=Times Newspapers |page= 10 |date= 28 September 2003 <!--|access-date=28 November 2006-->}}</ref><ref>{{Cite news |first=Mark |last=Thomas |title=Martin and me |url=https://www.theguardian.com/world/2007/dec/04/bae.armstrade |work=The Guardian |location=London |publisher=Guardian Newspapers |date=4 December 2007 |access-date=4 December 2007 |archive-url=https://web.archive.org/web/20130901074033/http://www.theguardian.com/world/2007/dec/04/bae.armstrade |archive-date=1 September 2013 |url-status=live}}</ref> In February 2007, it was reported that the corporation had again obtained private confidential information from CAAT.<ref>{{Cite news |first=George |last=Monbiot |title=The parallel universe of BAE: covert, dangerous and beyond the rule of law |url=https://www.theguardian.com/commentisfree/2007/feb/13/bae.foreignpolicy |work=The Guardian |location=London |publisher=Guardian Newspapers |date=13 February 2007 |access-date=4 December 2007 |archive-url=https://web.archive.org/web/20130831013507/http://www.theguardian.com/commentisfree/2007/feb/13/bae.foreignpolicy |archive-date=31 August 2013 |url-status=live}}</ref>

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.<ref>{{cite news |url=http://www.theaustralian.com.au/news/world/security-experts-admit-china-stole-secret-fighter-jet-plans/story-fnb64oi6-1226296400154 |title=Security experts admit China stole secret fighter jet plans |work=theaustralian.com.au |publisher=The Australian |date=12 March 2012 |access-date=11 March 2012 |archive-url=https://web.archive.org/web/20120311221825/http://www.theaustralian.com.au/news/world/security-experts-admit-china-stole-secret-fighter-jet-plans/story-fnb64oi6-1226296400154 |archive-date=11 March 2012 |url-status=live}}</ref>

===Cluster bombs===
In 2003, BAE Systems was criticised for its role in the production of [[cluster bombs]], due to the long-term risk for injury or death to civilians. Following the 2008 Oslo [[Convention on Cluster Munitions]] BAE Systems was among the first defence contractors to stop their manufacture<ref>{{cite news |title=Do you make or sell cluster munitions? |url=http://www.baesystems.com/article/BAES_052468/cluster-bombs?_afrLoop=2997644007578000&_afrWindowMode=0&_afrWindowId=null#!%40%40%3F_afrWindowId%3Dnull%26_afrLoop%3D2997644007578000%26_afrWindowMode%3D0%26_adf.ctrl-state%3Dwzijqwb8e_370 |newspaper=BAE Systems |access-date=19 June 2015 |archive-url=https://web.archive.org/web/20150619174023/http://www.baesystems.com/article/BAES_052468/cluster-bombs?_afrLoop=2997644007578000&_afrWindowMode=0&_afrWindowId=null#!%40%40%3F_afrWindowId%3Dnull%26_afrLoop%3D2997644007578000%26_afrWindowMode%3D0%26_adf.ctrl-state%3Dwzijqwb8e_370 |archive-date=19 June 2015 |url-status=live}}</ref><ref>{{cite web|url=http://www.baesystems.com/BAEProd/groups/public/documents/bae_publication/bae_pdf_cr08_cr_panel.pdf |title=Corporate Responsibility Panel |access-date=17 April 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110611075402/http://www.baesystems.com/BAEProd/groups/public/documents/bae_publication/bae_pdf_cr08_cr_panel.pdf |archive-date=11 June 2011}}</ref> and by 2012 the majority of the munitions had been destroyed.<ref>{{cite news |last=Norton-Taylor |first=Richard |title=Most of Britain's cluster bomb stockpile has been destroyed, say activists |url=https://www.theguardian.com/world/2012/sep/06/britain-cluster-bomb-stockpile-destroyed |date=6 September 2012 |access-date=19 June 2015 |archive-url=https://web.archive.org/web/20150619175230/http://www.theguardian.com/world/2012/sep/06/britain-cluster-bomb-stockpile-destroyed |archive-date=19 June 2015 |url-status=live}}</ref>

===Saudi war in Yemen===
{{Main|Saudi Arabian–led intervention in Yemen}}
Saudi Arabia is BAE's third biggest market.<ref>"[https://www.bloomberg.com/news/articles/2015-02-19/bae-s-annual-profit-shrinks-12-as-defense-spending-stagnates BAE Says Islamic State War Is Call to Arms for Weapons-Maker] {{Webarchive|url=https://web.archive.org/web/20161221195654/https://www.bloomberg.com/news/articles/2015-02-19/bae-s-annual-profit-shrinks-12-as-defense-spending-stagnates |date=21 December 2016}}". Bloomberg. 19 February 2015.</ref> ''The Independent'' reported that BAE-supplied aircraft were used to bomb Red Cross and MSF hospitals in Yemen."<ref>"[https://www.independent.co.uk/voices/saudi-arabia-un-human-rights-council-theresa-may-expel-she-should-enough-a7199066.html Theresa May should expel Saudi Arabia from the UN Human Rights Council, but that's not enough to absolve the UK] {{Webarchive|url=https://web.archive.org/web/20170513121145/http://www.independent.co.uk/voices/saudi-arabia-un-human-rights-council-theresa-may-expel-she-should-enough-a7199066.html |date=13 May 2017}}". ''The Independent''. 19 August 2016.</ref> Sir Roger Carr rejected criticism over BAE's continued work in Saudi Arabia, saying "We will stop doing it when they tell us to stop doing it...  We maintain peace by having the ability to make war and that has stood the test of time."<ref>"[https://www.theguardian.com/business/2016/may/04/peace-activists-bae-systems-agm-saudi-arms-sales BAE chairman to peace activists: 'weapons sales encourage peace'] {{Webarchive|url=https://web.archive.org/web/20160828192738/https://www.theguardian.com/business/2016/may/04/peace-activists-bae-systems-agm-saudi-arms-sales |date=28 August 2016}}". ''The Guardian''. 4 May 2016.</ref> BAE Systems sold weaponry worth £17.6 billion to Saudi Arabia during the Yemen war.<ref>{{Cite web|url=https://www.dailymaverick.co.za/article/2021-04-16-bae-systems-sold-weaponry-worth-17-6bn-to-saudis-during-yemen-war/|title=DECLASSIFIED UK: BAE Systems sold weaponry worth £17.6bn to Saudis during Yemen war|first=Phil|last=Miller|date=16 April 2021|website=Daily Maverick}}</ref>

===Israel's war in Gaza===
[[Direct action]] was taken against arms companies in the United Kingdom, including BAE Systems, that supplied weapons to [[Israel]] during the [[2023 Israel–Hamas war]]. For instance, on 10 November 2023, trade unionists in [[Rochester, Kent|Rochester]], Kent, blocked the entrances to a BAE Systems factory, stating the facility manufactured military aircraft components used to bomb the [[Gaza Strip]].<ref>{{cite news |last1=Luck |first1=Flaminia |title=Israel-Gaza: Union members block arms factory in protest over conflict |work=BBC News |date=10 November 2023 |url=https://www.bbc.com/news/uk-england-kent-67378052 |archive-date=10 November 2023 |archive-url=https://web.archive.org/web/20231110162943/https://www.bbc.com/news/uk-england-kent-67378052 |url-status=live }}</ref>

===Political influence and donations===
Former Foreign Secretary [[Robin Cook]] said of his time in office that he "came to learn that the chairman of BAE appeared to have the key to the garden door to [[10 Downing Street|number 10]]. Certainly I never knew No 10 to come up with any decision which would be incommoding to BAE."<ref>{{cite news |url=https://www.independent.co.uk/news/business/news/the-firm-with-a-back-door-key-to-number-10-1796377.html |title=The firm with a 'back door key to Number 10' |newspaper=The Independent |access-date=2 April 2017 |archive-url=https://web.archive.org/web/20170407053440/http://www.independent.co.uk/news/business/news/the-firm-with-a-back-door-key-to-number-10-1796377.html |archive-date=7 April 2017 |url-status=live}}</ref>

In the United States BAE Systems is a significant political donor to both Democratic and Republican candidates and organisations.<ref>{{cite news |last1=Ralph |first1=Alex |last2=Greenwood |first2=George |title=Donations to US election candidates linked to British companies |url=https://www.thetimes.co.uk/article/donations-linked-to-companies-06tj6hw8v |website=www.thetimes.co.uk |publisher=The Times |access-date=5 June 2021}}</ref> In 2016 its [[political action committee]] (PAC) contributions were the second largest of any foreign corporation after [[UBS]].<ref>{{cite web |last1=Knigge |first1=Michael |title=Foreign-connected PACs spent $10 million on the US election so far |url=https://www.dw.com/en/foreign-connected-pacs-spent-10-million-on-the-us-election-so-far/a-19297597 |website=www.dw.com |publisher=DW |access-date=5 June 2021}}</ref> In January 2021 following the [[2021 United States Capitol attack]] BAE Systems announced that it was suspending political donations in the US. On 30 March it once again began making large political contributions, including one to the [[National Republican Senatorial Committee]].<ref>{{cite web |last1=Gould |first1=Joe |title=Defense firms quietly resume political giving after post-insurrection pause |url=https://www.defensenews.com/congress/2021/06/04/defense-firms-quietly-resume-political-giving-after-post-insurrection-pause/ |website=www.defensenews.com |date=4 June 2021 |publisher=Defense News |access-date=5 June 2021}}</ref>

==See also==
{{Portal|London|Hampshire|Companies|Aviation}}
* [[Aerospace industry in the United Kingdom]]
{{clear}}

==References==
{{Reflist|30em}}

==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==
{{Commons category|BAE Systems}}
* {{official website}}

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