Babcock International Group PLC
BAB
ISIN GB0009697037 / Valor 1142141
Babcock International Group PLC
UMushroom community rating:
About company
Babcock International Group PLC is a multinational company specializing in defense, aerospace, and security services, with a strong presence in the UK, Australasia, Canada, France, and South Africa. The company focuses on delivering engineering, support, and critical systems to both defense and civil markets, as well as designing and manufacturing specialist equipment such as naval ship systems and liquid gas handling systems. Babcock also offers integrated technology solutions in areas like secure communications, electronic warfare, and air defense. With a workforce of 26,000 employees, the company provides through-life technical and engineering support to improve performance, availability, and program cost for defense and civil customers, including naval, land, air, and nuclear operations.
Summarized from source with an LLMView SourceSector: IndustrialsLatest Results (10.08.2026):
Babcock International Group PLC — full year results for the year ended 31 March 2026 (FY26, covering Q4 FY26): the Group delivered strong underlying operational progress and cash generation but recognised a material programme charge. Statutory revenue was £5,177.7m and statutory operating profit £305.1m; underlying results were impacted by a £140.0m Type 31 charge recognised in FY26.
Headline numbers
Statutory revenue £5,177.7m; statutory operating profit £305.1m; basic EPS 42.1p. Underlying operating profit £293.3m and underlying EPS 39.6p for FY26.
Type 31 programme impact
Babcock recognised a £140.0m Type 31 contract charge in FY26 (includes a £95.5m revenue reversal). Excluding the Type 31 charge, underlying operating profit rises to £433.3m, underlying margin to 8.2% and underlying EPS to 60.5p.
Underlying performance and margins
Reported underlying operating margin was 5.7% (8.2% ex-Type 31). Revenue grew c.8% organically, driven by Nuclear and Aviation; all four sectors improved margins excluding the Type 31 impact.
Cash generation and balance sheet
Underlying free cash flow increased 71% to £261.8m; underlying operating cash conversion 119% (84% excluding Type 31). Net debt reduced to £329.0m (net debt excluding leases £22.7m); covenant net debt/EBITDA 0.2x.
Capital allocation & returns
Recommended full year dividend up 15% to 7.5p per share; completed a £200m buyback in April 2026 and announced a further £200m buyback expected in FY27.
Contract backlog, wins and strategy
Contract backlog £9.8bn. Major strategic progress: Indonesia Maritime Partnership Programme (up to £4bn), expanded HII partnership (support for US Virginia Class), Owners Engineer role for UK SMR programme, and other international defence/nuclear opportunities.
Outlook and guidance
FY27 expectations unchanged. Medium-term guidance reaffirmed: average mid-single-digit organic revenue growth, underlying operating margin of at least 9% and average underlying operating cash conversion of at least 80%.
Summarized from source with an LLMView SourceKey figures
Performance
Volatility
6412 M
Market cap (USD)
804,421
Daily traded volume (Shares)
5.025 / 4.928
1 day high/low (USD)
52 weeks high/low (USD)
Dividend ex-date
Dividend (USD)
Dividend yield (p.a.)
Est dividend (USD)
Est dividend yield
P/E ratio
Est P/E ratio
EPS (USD)
Est EPS (USD)
Ratings & reviews
EQUITIES OF THE SAME SECTOR
