Babcock International Group (BAB) Trading Update summary

Trading performance and guidance update

• Strong trading momentum continued through Q3, with January performance also encouraging.

• Full-year revenue and underlying operating profit now expected to exceed the top end of analyst expectations.

• FY25 revenue guidance upgraded to approximately £4.9 billion, driven by double-digit organic growth in Nuclear and strong Marine growth.

• Nuclear growth supported by increased civil nuclear work, submarine support, and higher infrastructure revenues; Marine growth aided by higher LGE volumes and Skynet programme ramp-up.

Operational and strategic progress

• HMS Victorious entered Devonport's 9-Dock for a major £560 million refit, supporting UK's continuous at-sea deterrent.

• Progressing build of first three Type 31 Inspiration Class frigates, with key float-off milestones expected in FY26.

• Awarded a new 17-year, up to €800 million contract for military air training solutions in France, expanding international military activity.

• Initial revenue of about £180 million from the French contract expected over FY26–FY28, with working capital investment in FY26 to be recovered in FY27.

Strategic outlook and leadership commentary

• CEO highlights continued successful execution of strategy and growing demand for engineering expertise.

• Significant opportunities identified for further profitable growth.