Babcock International Group (BAB)

Sector:

Defense and Aeronautics

Index:

FTSE 100

1,131.50p
   
  • Change Today:
    -7.00p
  • 52 Week High: 1,502.00
  • 52 Week Low: 921.00
  • Currency: UK Pounds
  • Shares Issued: 492.77m
  • Volume: 2,592,982
  • Market Cap: £5,576m
  • RiskGrade: 290

Royal Navy to replace ageing destroyers with hybrid warships

By Abigail Townsend

Date: Monday 29 Jun 2026

LONDON (ShareCast) - (Sharecast News) - The Royal Navy is to acquire at least six hybrid warships, the government confirmed on Monday, as it looks to replace its fleet of Type 45 destroyers.
The Ministry of Defence had been exploring replacing the ageing Type 45 with the Type 83, an experimental vessel that is still at concept phase. Defence contractor Babcock International had been one of the candidates bidding to build it.

However, the MoD confirmed that it was instead opting for six common combat vessels, which are smaller than traditional destroyers and able to deploy drones both in the air and underwater.

It said: "Rather than concentrating capability in a small number of large, expensive ships, the Royal Navy's shift to a hybrid navy will mix crewed and uncrewed capabilities and be more suited to the pace and nature of modern warfare."

Defence secretary Dan Jarvis added: "The new ships will be British-built, supporting jobs across the nation and giving the Royal Navy a capability built for modern warfare."

Confirmation of the shift away from the Type 83 weighed on Babcock's shares, which fell as much as 7% earlier in the session. By 1500 BST the blue chip had pared back some losses, but remained down 3% at 940p.

The ships are being acquired under the government's much-anticipated defence investment plan, with delivery expected in the early 2030s. Outgoing prime minister Keir Starmer has committed to publish the full plan ahead of the Nato summit in Turkey on 7 July.

The MoD said: "The funding announced in the DIP allows the National Armaments Director Group to commence the design work that will underpin the fundamental shift in how to deliver air defence at and from the sea."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BAB Market Data

Currency UK Pounds
Share Price 1,131.50p
Change Today -7.00p
% Change -0.61 %
52 Week High 1,502.00
52 Week Low 921.00
Volume 2,592,982
Shares Issued 492.77m
Market Cap £5,576m
RiskGrade 290

BAB Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
81.95% below the market average81.95% below the market average81.95% below the market average81.95% below the market average81.95% below the market average
27.27% below the sector average27.27% below the sector average27.27% below the sector average27.27% below the sector average27.27% below the sector average
Price Trend
95.90% above the market average95.90% above the market average95.90% above the market average95.90% above the market average95.90% above the market average
83.33% above the sector average83.33% above the sector average83.33% above the sector average83.33% above the sector average83.33% above the sector average
Income
60.61% below the market average60.61% below the market average60.61% below the market average60.61% below the market average60.61% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average
Growth
85.90% above the market average85.90% above the market average85.90% above the market average85.90% above the market average85.90% above the market average
27.27% above the sector average27.27% above the sector average27.27% above the sector average27.27% above the sector average27.27% above the sector average

BAB Dividends

  Latest Previous
  Final Interim
Ex-Div 13-Aug-26 04-Dec-25
Paid 25-Sep-26 16-Jan-26
Amount 5.00p 2.50p

Trades for 19-Aug-2026

Time Volume / Share Price
16:35 720,532 @ 1,131.50p
16:35 520 @ 1,131.50p
16:35 2,339 @ 1,131.50p
16:35 2,552 @ 1,131.50p
16:35 5,648 @ 1,131.50p

BAB Key Personnel

Chair Ruth Cairnie
CFO David Mellors
CEO Harry Holt

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