BAE Systems raised shareholder payouts after defense orders climbed to a record level, as increased military spending across Europe and the United States supported revenue growth. The British defense company recommended a final dividend of 22.8 pence, taking the total annual dividend to 36.3 pence, marking a 10% increase from the previous year.

Sales rose 10% on a constant currency basis to a record £30.7 billion, while underlying earnings before interest and tax increased 12% to £3.32 billion. Order intake reached £36.8 billion, lifting the company's order backlog to a record £83.6 billion. The book-to-bill ratio stood at 1.2, indicating strong future revenue visibility.

Chief executive Charles Woodburn highlighted "another year of strong operational and financial performance." The company repurchased 30 million shares during the year at a cost of £502 million and returned £1.53 billion to shareholders through dividends and buybacks. Net debt fell 22% to £3.84 billion as the defense contractor capitalized on heightened global security spending.