Babcock reiterates outlook on strong first half
By Abigail Townsend
Date: Thursday 25 Sep 2025
(Sharecast News) - Defence contractor Babcock International reaffirmed its full-year outlook on Thursday after an "encouraging" start to the year.
Updating on trading, the blue chip said organic revenue growth and underlying operating margin progress had both been in line with expectations in the five months to August end.
Its nuclear and aviation divisions performed particularly well. In nuclear, it secured a £114m contract to the support the defueling of a decommissioned British submarine over 20 years, while aviation benefited from the ramp up of the French Mentor 2 contract.
Babcock also secured an eight-year contract with the Australian Border Force, to enhance maritime security operations in the Torres Strait.
The strong performances in nuclear, aviation and marine helped offset lower revenues in land, which were impacted by weaker activity in rail.
The firm said: "Trading in the first five months has been encouraging.
"Overall, expectations for the full year remain unchanged, and we continue to progress towards the group's medium-term guidance.
"The macro environment remains supportive, and we continue to make good strategic progress."
Babcock was updating investors at its annual general meeting.
It is due to publish interim results on 20 November.
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