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BAE Systems

DEFENCE · LSE

◆ THESIS
  • UK's largest defence company. European defence spending surge. Record order book. Up 73% over 12 months — but still cheaper than US peers.

  • UK naval & missile systems supplier. Royal Navy commitment to Red Sea ops drives sustained UK defence spend.

  • AS90 howitzer reorders, Storm Shadow / SCALP integration, NLAW production. Permanent UK defence budget shift to 2.5% GDP, rising toward 3%. Locked-in capital expenditure cycle.

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