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Babcock International Group (BAB) investor relations material

Babcock International Group H1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2026 earnings summary21 Nov, 2025

Executive summary

  • Achieved strong half-year performance with 7% organic revenue growth to £2,538.6m, robust profit and EPS increases, and margin expansion to 7.9%, with all business segments contributing, especially defense, marine, and nuclear.

  • Statutory operating profit rose 27% to £234.3m, underlying operating profit increased 19% to £201.1m, and EPS rose 21% to 28.5p.

  • Strong cash conversion at 83% and net debt excluding leases reduced to £55.8m, with gearing at 0.2x.

  • Interim dividend increased 25% to 2.5p per share; £49m of a £200m share buyback completed in H1.

  • Confident outlook for 2026 and reaffirmed medium-term guidance, supported by resilient market demand and contract visibility.

Financial highlights

  • Revenue grew 7% year-over-year to £2,538.6m, with underlying operating profit up 19% to £201.1m and margin up 90bps to 7.9%.

  • EPS rose 21% to 28.5p; free cash flow up 48% to £140.6m; cash conversion at 83%.

  • Dividend increased 25% to 2.5p; £49m share buyback executed in H1, with the remainder to be completed in H2.

  • Net debt (excluding leases) reduced to £55.8m; net debt/EBITDA at 0.2x; facility headroom over £1.4bn.

  • Return on invested capital (pre-tax) increased to 38.0% and interest cover rose to 54.6x.

Outlook and guidance

  • FY26 expectations unchanged: targeting 8% underlying operating margin, mid-single digit average revenue growth, and at least 80% operating cash conversion.

  • Medium-term guidance: underlying margin of at least 9%.

  • FY26 revenue contract cover at approximately 90%, supporting confidence in meeting full-year expectations.

  • Positive momentum in civil nuclear and defense markets, with significant growth opportunities in the pipeline.

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Frequently asked questions

Babcock International Group PLC is a global support services company that provides value-added services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land and Aviation. Babcock supports critical utility and process equipment; offers asset management, defense training and maritime services; designs nuclear power plants; operates facilities including air bases and offers through-life support for mechanical and electrical systems and equipment

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