Babcock International Group PLC reported its half-year results for the six months ended 30 September 2025, showcasing consistent delivery, growth, and margin expansion. Key highlights include
**Revenue Growth**Revenue increased by 7% to £2,538.6 million, driven primarily by the Nuclear division, which saw a 14% organic growth.
**Profitability**Statutory operating profit rose by 27% to £234.3 million, while underlying operating profit grew by 19% to £201.1 million. Underlying operating margin improved by 90 basis points to 7.9%.
**Cash Flow**Underlying free cash flow increased by 48% to £140.6 million, supported by strong cash conversion of 83%.
**Dividend**The interim dividend was raised by 25% to 2.5 pence per share.
**Contract Backlog**The contract backlog stood at £9.9 billion, reflecting significant orders in Land and Aviation.
**Strategic Progress**Notable achievements include the completion of the first Type 31 frigate, re-opening of Devonports 15 Dock, and securing a £114 million nuclear defueling contract.
**Market Dynamics**The company benefited from supportive market conditions in defense and nuclear sectors, securing new contracts and partnerships globally.
**Balance Sheet**Net debt excluding leases reduced by £90 million to £55.8 million, with a gearing ratio of 0.2x.
**Outlook**Babcock remains on track to achieve its FY26 targets, including an underlying operating margin of 8% and medium-term goals of mid-single-digit revenue growth and a margin of at least 9%.
CEO David Lockwood emphasized the companys strong performance, consistent delivery, and strategic positioning for sustainable growth, both in the UK and internationally.