Babcock International Group PLC
LSE:BAB

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Babcock International Group PLC Logo
Babcock International Group PLC
LSE:BAB
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Price: 1 146 GBX -0.09% Market Closed
Market Cap: 5.7B GBX

Babcock International Group PLC
Investor Relations

Babcock International Group PLC, a stalwart in the realm of engineering support services, operates at the intersection of innovation and tradition. Born in the industrial heartlands of the United Kingdom, it has carved a niche by focusing on essential infrastructure and capabilities crucial to national security and societal functioning. Its expertise is predominantly centered around the defense, emergency services, and civil nuclear sectors. Babcock’s adaptability is exemplified through its involvement in critical projects - whether it’s maintaining naval fleets or ensuring the readiness of military aircrews. In essence, Babcock provides technical support that ensures the seamless operation of some of the most complex and vital systems, making it an indispensable asset to both government and private sectors alike.

Through its diverse offerings, Babcock generates revenue primarily by securing long-term contracts for providing services such as engineering support and fleet management. These contracts often come from governmental bodies, ensuring a steady flow of business with low commercial risk and high predictability. Moreover, its strategic focus on sectors that are less prone to economic cycles gives Babcock a stable financial footing. By investing in technology and skills development, the company not only enhances its service propositions but also fortifies relationships with clients, ensuring repeat business and operational scalability. It's this blend of robust sector focus and strategic foresight that enables Babcock International to maintain its pivotal presence in the global engineering services landscape.

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Last Earnings Call
Fiscal Period
Q2 2026
Call Date
Nov 21, 2025
AI Summary
Q2 2026

Strong Financials: Babcock delivered a robust set of half-year results, with all key financial metrics up year-on-year, including organic revenue growth, profit, margin, EPS, and dividend.

Margin Progression: Operating profit margin improved to 7.9%, up 90 basis points, putting the company on track for its 8% full-year target.

Cash Generation: Free cash flow reached GBP 141 million, a record for the first half, supported by higher profits and much lower pension deficit payments.

Confident Outlook: Management expressed confidence in meeting full-year expectations and reaffirmed medium-term guidance, citing strong order cover and sector momentum.

Capital Allocation: The company remains focused on organic investments, potential bolt-on M&A, and is progressing with a GBP 200 million share buyback.

Sector Strengths: Growth was driven by Marine, Nuclear, and Aviation, while Land was weaker due to nondefense businesses. Nuclear margins reached 9.1%.

Visibility & Opportunities: Good revenue visibility across contracts, with significant opportunities in civil and defense nuclear, submarine support, and international markets.

Key Financials
Organic Revenue Growth
7%
Operating Profit Margin
7.9%
Underlying Operating Profit
GBP 201 million
Free Cash Flow
GBP 141 million
Cash Conversion
83%
Share Buyback Executed
GBP 49 million
Marine Organic Revenue Growth
6%
Marine Profit Growth
up 38%
Marine Margin Improvement
up 160 bps
Type 31 Revenue (Marine)
GBP 100 million
Cavendish Growth
25%
Submarine Support Growth
31%
Nuclear Profit Growth
up 18%
Nuclear Margin
9.1%
Land Organic Revenue Growth
-11%
Land Margin Improvement
up 20 bps
Aviation Organic Growth
26%
Aviation Margin
7.2%
Operating Cash Flow
GBP 166 million
Working Capital Outflow
GBP 32 million
CapEx
GBP 46 million
Pension Cash Outflow
GBP 7 million
MIP Revenues (Nuclear)
GBP 215 million
Earnings Call Recording
Other Earnings Calls

Management

Mr. David Charles Lockwood B.A., F.C.A., O.B.E., RSA
CEO & Executive Director
No Bio Available
Mr. David Mellors ACA, MA
CFO & Executive Director
No Bio Available
Brad Yelland
Chief Engineering & Technology Officer
No Bio Available
Mr. Andrew Paul Gollan
Director of Investor Relations
No Bio Available
Mr. Nicholas James William Borrett
Group Company Secretary & General Counsel
No Bio Available
Ms. Nikki Fox
Chief Human Resources Officer
No Bio Available
Mr. Bob Whiley
Managing Director of Babcock Networks
No Bio Available
Ms. Kate Hill
Group Head of Financial Communications
No Bio Available
Mr. John Howie M.B.E.
Chief Corporate Affairs Officer
No Bio Available
Mr. Tom Newman
Chief Executive Officer of Land Sector
No Bio Available

Contacts

Address
London
33 Wigmore Street
Contacts