Swedish businesses lead BAE Systems growth

BAE Systems’ Swedish businesses Bofors and Hägglunds grew by nearly 30 percent in the first half of 2026, driven by European demand for combat vehicles.

That is according to the British defence group’s newly published half-year report. The Swedish growth helped the Platforms & Services division outpace the wider group, although both order intake and backlog declined in the segment.

BAE Systems said it continues to see a growing pipeline for CV90, BvS10 and Beowulf vehicles, as well as Bofors artillery, naval guns, air defence systems and ammunition.

The expansion is being supported by a five-year investment programme of more than GBP 223m at Hägglunds in Sweden. The programme includes new assembly and welding lines and expanded testing capacity.

Bofors has meanwhile acquired Swedish supplier Aston Harald Mekaniska Verkstad to bring more production in-house and strengthen security of supply. The company also received new Swedish orders for ARCHER artillery and TRIDON Mk2 air defence and counter-drone systems during the half-year.

Elsewhere in the Nordics, upgrades of Finland’s CV90 vehicles are nearing completion. BAE Systems’ MBDA joint venture also won orders for Aster and VL MICA-based air defence systems for Denmark.

Guidance for underlying operating profit growth was raised to 10-12 percent from 9-11 percent, implying a result of around GBP 3.65-3.72bn.