The company also has a large order backlog of £40.5bn.
Ian King, chief executive, said: "In 2014, BAE Systems delivered a solid overall performance, in line with guidance. We continue to win significant new business with over £10bn of new orders from the UK and US for the third successive year.
"As a result, the large order backlog of £40.5bn continues to provide good, multi-year visibility across many of our businesses. Looking ahead, defence spending remains a high priority in a number of international markets. In the UK, we benefit from long-term contracts, notwithstanding continued pressure on public spending."
He added: "We believe US budgets are now relatively stable, with some early indications of a modest improvement in 2016. These are competitive times and we will continue to invest in and develop the technology, skills and market positions needed to drive the business forward."
