BAE Systems has posted record-breaking financial performance in 2025, with sales climbing 10% to £30.7bn and underlying earnings per share rising 12% to 75.2p, driven by strong demand across all its business sectors.

It will come as no surprise that BAE Systems had a strong 2025, given heightened geopolitical risks and a push by governments globally to ramp up defence spending.

Underlying earnings before interest and tax rose 12% to £3,322m, with return on sales improving to 10.8%. The defence giant generated free cash flow of £2,158m, whilst its order backlog swelled to a record following £36.8bn of new order intake during the year.

“A 12% rise in operating profit tells you governments aren’t hesitating in reaching for their chequebooks,” said Mark Crouch, market analyst for eToro.

“BAE’s order book now stands at a record £83.6bn, stretching years into the horizon, and it’s why BAE shares have definitively outpaced the FTSE 100. With free cash flow set to top £6bn through 2026, that trajectory looks set to continue.”

Shareholders will receive a dividend of 36.3p per share, up 10% on the prior year.

BAE Systems shares were 3.1% higher at the time of writing, but failed to convincingly break through previous highs in the 2,150p – 2,160p region, suggesting the market may have been hoping for a little more from the group.

Nonetheless, today’s results reflect a broad increase in demand for the group’s products that more than justifies the meteoric rise in shares over the past four years.

Norway selected BAE’s Type 26 frigate for its future warship programme in a Government-to-Government agreement worth £10bn, potentially the UK’s largest ever warship export deal by value. A separate agreement saw Turkey commit to purchasing 20 Typhoon aircraft in a deal anticipated to be worth £4.6bn to BAE, sustaining Typhoon production and supporting 20,000 UK jobs.

In space, the company secured a $1.2bn contract to provide the US Space Force with space-based missile-tracking capabilities, whilst its Armored Multi-Purpose Vehicle programme reached 500 deliveries for the US Army.

The company also launched Edgewing, a joint venture with Italian and Japanese partners to design and develop the next-generation combat aircraft under the Global Combat Air Programme (GCAP).

The growing orderbook underpins BAE Systems’ orderbook, and analysts see the stock as a solid option for seeking exposure to the sector.

“Despite a good run so far in 2026, with the shares up around 15%, its valuation isn’t too demanding, especially compared to some peers. For investors looking to get exposure to the defence sector, BAE Systems remains a compelling choice,” explained Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

AFC Energy has received revised approval from the UK Environment Agency to export and sell low-carbon hydrogen produced at its pilot ammonia-cracking plant in Dunsfold, Surrey, thereby accelerating revenue generation by several months.

The revised Research and Development permit reflects the company’s ability to produce ISO 14687 grade D hydrogen at 99.97% purity, in volume, and to demonstrate safety protocols.

The Dunsfold plant can produce up to 300kg of hydrogen per day in its current configuration.

The permit revision also provides operational flexibility, allowing AFC Energy to train operatives on-site at Dunsfold ahead of the plant’s planned relocation, removing a previous scheduling constraint.

AFC Energy is progressing its Joint Venture with Industrial Chemicals Group Ltd (ICL) to establish hydrogen production at ICL’s Port Clarence facility in Middlesbrough, deploying multiple Hy-5 ammonia cracker units, each capable of producing up to 500kg of hydrogen per day.

The JV is engaging with the Environment Agency at both local and national levels to develop an accelerated permitting framework for future Hy-5 deployments across the UK.

Applied Nutrition has delivered a barnstorming first half, with revenues jumping 57% to £74.5 million as the sports nutrition and wellness brand reaps the rewards of its push into mainstream retail.

Revenue, covering the six months to 31 January 2026, comfortably beat management expectations, with EBITDA also coming in ahead. The company has now upgraded its full-year outlook, guiding to approximately £140 million in revenue for FY26, ahead of the updated market consensus.

Applied Nutrition shares were 6% higher at the time of writing.

Much of the momentum stems from a successful diversification into UK high street health retailers, grocers, and discounters. Retail orders and customer stock levels heading into the key January health and fitness season were significantly above expectations, a clear sign the brand is gaining shelf space and consumer traction beyond its traditional channels.

However, the company noted that the first half is likely to be more heavily weighted than in previous years, suggesting possible natural moderation in the second half.

Applied Nutrition listed at 140p in 2024 and is now changing hands at 257p.

Antofagasta shares were slightly weaker on Tuesday as traders reacted to the copper miner’s bumper 2025 results. 

Results were nothing short of spectacular, and the 2% decline in early Tuesday trading was more a reflection of the stock’s rip-roaring rally over the past year than a sign of disappointment with the numbers.

Antofagasta shares have rallied 98% over the past year.

Investors know it’s sometimes better to travel than to arrive, and Antofagasta’s 2025 journey was powered by higher copper prices, leading to the sharp jump in revenue and EBITDA confirmed today. 

Revenue surged 30% to $8.6 billion in 2025, driven by both higher metals prices and increased volumes. 

A burgeoning top line led to a whopping 52% increase in EBITDA and an EBITDA margin of 60%. 

The group is rewarding investors who haven’t had the easiest ride prior to 2025 with an eye-catching 106% increase in the full-year dividend to 64.6 cents. 

“When a miner generates that kind of return, doubling earnings and more than doubling the dividend, investors sit up and take notice,” said Mark Crouch, market analyst for eToro.

“As for Dr Copper, the market’s wily diagnostician, he has finally delivered his verdict. The world needs more copper. Electrification, renewables, AI’s power-hungry data centres, all roads lead back to the red metal. Even after a pause for breath in 2026, prices remain historically elevated. Yet measured against the S&P 500, copper still looks surprisingly undervalued.

“Antofagasta looks beautifully positioned in 2026. Disciplined, cash-generative, and leveraged to a structural demand story that’s only just gathering heat. Barring a global downturn, this cycle has the feel of something deeper. In copper, conviction counts, and right now, Antofagasta has it in abundance.”