Aerospace & Defence
Babcock International is a defence engineering and support group specialising in complex assets and critical infrastructure. It provides long-term engineering, maintenance, training and support services across marine, nuclear, land and aviation markets.
Warship and submarine support, naval engineering, nuclear infrastructure, military vehicle and equipment support, aviation services, training, technical services and long-term maintenance of complex defence assets.
The UK Ministry of Defence is central to the business, with additional defence and nuclear activities in Australia, Canada, France and other allied markets. Long-duration government contracts provide high revenue visibility.
Higher defence and nuclear spending, fleet modernisation, major contract wins, margin improvement, execution of long-term programmes, cash conversion, order-book growth and expansion in allied international defence markets.
Large fixed-price or complex contracts, programme delays, cost overruns, government budget changes, customer concentration, nuclear and safety obligations, skilled-labour constraints and execution of major naval programmes.
22 June 2026: Babcock reported another year of underlying growth, reaffirmed its medium-term guidance, increased the dividend and launched a further £200m share-buyback programme as defence and nuclear demand continued to strengthen.
Pays interim and final dividends. FY2026 total dividend is 7.5p: the 2.5p interim was paid on 16 January 2026 and the 5.0p final went ex-dividend on 13 August, with payment due on 25 September.
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