LONDON: The chief of Britain's biggest defense company said he was encouraged by the outlook for orders of the Typhoon fighter jet in the Middle East.
But BAE Systems forecast flat earnings overall in 2018 as it adjusted to lower production of the aircraft.
“The opportunity pipeline - in terms of campaigns in Europe and in the Middle East is as good as we’ve seen it,” BAE Systems’ CEO Charles Woodburn said
in a webcast following the announcement of the UK-headquartered company’s annual results.
“It certainly encourages us we will see growth coming into the next decade in Typhoon production,” he said.
His comments come as Typhoon production has slowed, at the cost of jobs, with the company announcing last October it would make nearly 2000 job cuts, due in part to a lack of jet orders.
BAE’s earnings statement released on Feb. 22 said that overall sales of airborne vehicles is expected to be 5 percent lower due to the completion of Typhoon contracts with Europe, Saudi Arabia and Oman.
Last year, the first eight Typhoon and all eight Hawk aircraft for Oman were delivered. The four remaining Typhoon aircraft are due to be delivered this year.
Typhoon support service packages are now helping deliver more revenue than aircraft production, and this is an area that is expected to grow, said Woodburn.
However, he said he expected Typhoon production will start to stabilize in coming years, particularly due to the confirmed £5 billion contract with Qatar, secured last December, to supply 24 Typhoon aircraft.
“We continue to pursue further export opportunities which if secured would drive growth back,” he said in his presentation.
Woodburn’s optimism could revive hopes in the industry that there might be progress on the much-anticipated, but yet to materialize deal to sell 48 Typhoons to Saudi Arabia.
Saudi Arabia accounted for 16 percent of BAE Systems’ total sales last year, with the US remaining the company’s biggest market accounting for 39 percent of sales.
Overall, BAE Systems’ sales were up by £0.6 billion to reach £19.6 billion in 2017. Operating profit decreased to £1.48 billion from £1.74 billion recorded in 2016.
“With an improving outlook for defence budgets in a number of our markets, we are well placed to generate good returns for shareholders,” Woodburn said in an official statement.
The company decided on a final dividend of 13 pence per share, making a total of 21.8 pence per share for the year, marking an increase on 2 percent on 2016.
BAE Systems chief sees encouraging outlook for Typhoon orders in Middle East
BAE Systems chief sees encouraging outlook for Typhoon orders in Middle East
PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
