Babcock International Group (BAB) Status Update summary

Strategic Positioning and Market Outlook

• Cavendish Nuclear is the UK's largest civil and defense nuclear services provider, benefiting from high barriers to entry and regulatory complexity, and is positioned for double-digit growth and above group average margins driven by global megatrends such as security, climate change, and energy security.

• The business supports nuclear assets across their full lifecycle, from design and build to operation, maintenance, and decommissioning, leveraging synergies between civil and defense markets.

• Cavendish Nuclear operates across clean energy, civil decommissioning, and defense, with a healthy order book of about £1 billion and a pipeline of £5 billion in the next three years.

• Clean energy is expected to be the main growth driver, with significant opportunities in new build, SMRs, and fuel manufacturing, supported by long-term government commitment and cross-party support.

• International expansion is underway, with partnerships such as HII for AUKUS and decommissioning markets in the US and Japan.

Financial and Operational Highlights

• FY25 unaudited revenue for Cavendish Nuclear is £320 million, with revenue projected to grow to around £600 million by FY30, maintaining double-digit growth and margins.

• Cavendish Nuclear supports all 36 UK nuclear licensed sites and maintains a workforce of about 11,000.

• The business is characterized by large, multi-year contracts, underpinned by strong customer relationships and a robust supply chain.

• Growth is expected to nearly double revenue over the next five years, with clean energy projected to comprise 50% of revenue.

• The UK’s 24 GW nuclear target by 2050, sovereign fuel ambitions, and global decarbonization needs are key structural drivers.

Business Segments and Capabilities

• Cavendish Nuclear delivers engineering solutions in clean energy, civil decommissioning, and defense, including support for the UK reactor fleet and nuclear waste retrieval.

• Expertise spans the full nuclear asset lifecycle: design, build, operations, defuel, and dismantle.

• Major contracts include long-term partnerships for Hinkley Point C, EDF reactor operations, and AWE defense projects.

• Strong technical competence, advanced manufacturing, and a skilled workforce underpin competitive advantage.

• Cavendish is engaged with all major SMR and AMR vendors, aiming to be technology agnostic and well-placed for upcoming procurement opportunities.