It is involved in several major defence projects, including the Lockheed Martin F-35 Lightning II, the Eurofighter Typhoon, and the Astute, Dreadnought and SSN-AUKUS submarines.

[33] In contrast, DASA's response to the breakdown of the merger discussion was to merge with Aérospatiale to create the European Aeronautic Defence and Space Company (EADS), a horizontal integration.

"[37] When Dick Olver was appointed chairman in July 2004 he ordered a review of the company's businesses which ruled out further European acquisitions or joint ventures and confirmed a "strategic bias" for expansion and investment in the US.

[39] Between 2008 and early 2011 BAE acquired five cybersecurity companies in a shift in strategy to take account of reduced spending by governments on "traditional defence items such as warships and tanks".

On 11 December 2002, BAE Systems issued a shock profit warning due to cost overruns of the Nimrod MRA4 maritime reconnaissance/attack aircraft and the Astute-class submarine projects.

The Financial Times described the sale as "cut price" because French company Thales bid €300 million, but was blocked from purchasing Atlas by the German government on national security grounds.

[61] On 31 January 2006 the company announced the sale of BAE Systems Aerostructures to Spirit AeroSystems, Inc.,[62] having said as early as 2002 that it wished to dispose of what it did not regard as a "core business".

[79] Due to the slow pace of informal negotiations, BAE Systems exercised its put option which saw investment bank Rothschild appointed to give an independent valuation.

[82] In February 2010 BAE Systems announced a £592 million writedown of the former Armor Holdings business following the loss of the Family of Medium Tactical Vehicles contract in 2009.

[100] The Guardian reported that this was due to the German Government's concern about the "potential size of the French shareholding in the combined company, as well as disagreements over the location of the group's headquarters".

The resultant joint venture (JV), Rheinmetall BAE Systems Land (RBSL), was established in July 2019 following regulatory approval and is headquartered at the existing facility in Telford, Shropshire.

[114] In 2022, during the Russian invasion of Ukraine, major arms manufacturers, including BAE Systems,[115] reported a sharp increase in interim sales and profits.

[125] In July 2006, the British government declassified the HERTI (High Endurance Rapid Technology Insertion), an Unmanned Aerial Vehicle (UAV) which can navigate autonomously.

[144] The possibility of a merger between BAE Systems Inc. and major North American defence contractors has long been reported, including Boeing, General Dynamics, Lockheed Martin, and Raytheon.

[152] On 4 January 2024, BAE Systems announced an initial agreement, potentially worth up to $50 million, to resume production of titanium structures for the M777 howitzer for the U.S. Army, with the first deliveries expected in 2025.

[153] BAE Systems' 2022 Annual Report listed the following as "significant" shareholders: Barclays 3.98%, BlackRock 9.90%, Capital Group Companies 14.18%, Invesco 4.97% and Silchester International Investors 3.01%.

The non-executive directors are Crystal E. Ashby, Elizabeth Corley, Chris Grigg, Ewan Kirk, Ian Tyler, Nicole Piasecki, Stephen Pearce, Jane Griffiths and Nick Anderson.

Woodburn joined BAE Systems in May 2016 as Chief Operating Officer and Executive Board Director following over 20 years' international experience in senior management positions in the oil and gas industry.

[165] Financial information for the company is as follows:[2][85][87][166][167][168] BAE Systems has been investigated by the Serious Fraud Office (SFO) for the use of corruption to help sell arms to Chile, Czech Republic, Romania, Saudi Arabia, South Africa, Tanzania and Qatar.

[176] The $400 million fine was a result of a plea bargain with the US Department of Justice (DOJ) whereby BAE Systems was convicted of felony conspiracy to defraud the United States government.

[179] On 2 March 2010, Campaign Against Arms Trade (CAAT) and Corner House Research were successful in gaining a High Court injunction on the SFO's settlement with BAE Systems; however in April 2010 the two organisations withdrew their application for a judicial review.

In November 2006, Saudi Arabia put pressure on the British government to end the SFO investigation by suspending negotiations over a new deal for seventy-two Typhoon fighter jets.

It stated that representations to its director and the Attorney General Lord Goldsmith had led to the conclusion that the wider public interest "to safeguard national and international security" outweighed any potential benefits of further investigation.

[185] In June 2007, the BBC's Panorama alleged BAE Systems "paid hundreds of millions of pounds to the ex-Saudi ambassador to the US, Prince Bandar bin Sultan" in return for his role in the Al Yamamah deals.

[190] The Times described the ruling as "one of the most strongly worded judicial attacks on government action" which condemned how "ministers 'buckled' to 'blatant threats' that Saudi cooperation in the fight against terrorism would end unless the ...investigation was dropped.

[195] The Guardian has also reported that "clandestine arms deals" have been under investigation in Chile and the UK since 2003 and that British Aerospace and BAE Systems made a number of payments to Pinochet advisers.

[202][203] In January 2007, details of an investigation by the SFO into BAE Systems' sales tactics in regard to South Africa were reported, highlighting the £2.3 billion deal to supply Hawk trainers and Gripen fighters as suspect.

[204] In May 2011, as allegations of bribery behind South Africa's Gripen procurement continued, the company's partner Saab AB issued strong denials of any illicit payments being made; however in June 2011 Saab announced that BAE Systems had made unaccounted payments of roughly $3.5 million to a consultant; this revelation prompted South African opposition parties to call for a renewed inquiry.

[207] In September 2003 The Sunday Times reported that BAE Systems had hired a private security contractor to collect information about individuals working at CAAT and their activities.

For instance, on 10 November 2023, trade unionists in Rochester, Kent, blocked the entrances to a BAE Systems factory, stating the facility manufactured military aircraft components used to bomb the Gaza Strip.