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BAB 06:01

Babcock International Group PLC

Results for the six months ended 30 September 2025

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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.

Here is a comparison of the financials and debt year on year for Babcock International Group PLC, presented as an HTML table:

Metric	30 Sep 2025	30 Sep 2024	Change
Revenue (£m)	2,538.6	2,408.9	+5.4%
Operating Profit (£m)	234.3	183.8	+27.5%
Basic Earnings per Share (p)	33.7	25.7	+31.1%
Interim Dividend per Share (p)	2.5	2.0	+25.0%
Cash Generated from Operations (£m)	226.9	181.3	+25.2%
Net Debt (£m)	-351.1	-385.6	-9.0%
Net Debt Excluding Leases (£m)	-55.8	-145.8	-61.7%
Net Debt/EBITDA (covenant basis)	0.2x	0.6x	-66.7%

**Key Observations:** - **Revenue Growth:** Revenue increased by 5.4% from £2,408.9m in 2024 to £2,538.6m in 2025, driven by strong growth in Nuclear, Aviation, and Marine sectors. - **Profitability Improvement:** Operating profit saw a significant increase of 27.5%, from £183.8m to £234.3m, reflecting improved performance across all sectors. - **Earnings per Share:** Basic earnings per share increased by 31.1%, from 25.7p to 33.7p, due to higher operating profit and lower interest charges. - **Dividend Increase:** The interim dividend per share was raised by 25%, from 2.0p to 2.5p, indicating confidence in the company's financial health. - **Cash Flow Improvement:** Cash generated from operations increased by 25.2%, from £181.3m to £226.9m, supported by higher operating profit and improved cash conversion. - **Debt Reduction:** Net debt decreased by 9.0%, from -£385.6m to -£351.1m, with a more significant reduction in net debt excluding leases (61.7%), reflecting strong cash generation and disciplined capital allocation. - **Leverage Ratio:** The net debt/EBITDA ratio improved significantly from 0.6x to 0.2x, indicating a stronger balance sheet and reduced financial risk. This table provides a concise comparison of key financial metrics, highlighting Babcock International Group PLC's improved financial performance and stronger balance sheet position in 2025 compared to 2024.

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BAB 06:01

Babcock International Group PLC

Results for the six months ended 30 September 2025

AI Expand: Explanation + Tables

Go Back To AI Charts

Return to today’s catalyst cards, chart beacons and AI charts.

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.

Here is a comparison of the financials and debt year on year for Babcock International Group PLC, presented as an HTML table:

Metric	30 Sep 2025	30 Sep 2024	Change
Revenue (£m)	2,538.6	2,408.9	+5.4%
Operating Profit (£m)	234.3	183.8	+27.5%
Basic Earnings per Share (p)	33.7	25.7	+31.1%
Interim Dividend per Share (p)	2.5	2.0	+25.0%
Cash Generated from Operations (£m)	226.9	181.3	+25.2%
Net Debt (£m)	-351.1	-385.6	-9.0%
Net Debt Excluding Leases (£m)	-55.8	-145.8	-61.7%
Net Debt/EBITDA (covenant basis)	0.2x	0.6x	-66.7%

**Key Observations:** - **Revenue Growth:** Revenue increased by 5.4% from £2,408.9m in 2024 to £2,538.6m in 2025, driven by strong growth in Nuclear, Aviation, and Marine sectors. - **Profitability Improvement:** Operating profit saw a significant increase of 27.5%, from £183.8m to £234.3m, reflecting improved performance across all sectors. - **Earnings per Share:** Basic earnings per share increased by 31.1%, from 25.7p to 33.7p, due to higher operating profit and lower interest charges. - **Dividend Increase:** The interim dividend per share was raised by 25%, from 2.0p to 2.5p, indicating confidence in the company's financial health. - **Cash Flow Improvement:** Cash generated from operations increased by 25.2%, from £181.3m to £226.9m, supported by higher operating profit and improved cash conversion. - **Debt Reduction:** Net debt decreased by 9.0%, from -£385.6m to -£351.1m, with a more significant reduction in net debt excluding leases (61.7%), reflecting strong cash generation and disciplined capital allocation. - **Leverage Ratio:** The net debt/EBITDA ratio improved significantly from 0.6x to 0.2x, indicating a stronger balance sheet and reduced financial risk. This table provides a concise comparison of key financial metrics, highlighting Babcock International Group PLC's improved financial performance and stronger balance sheet position in 2025 compared to 2024.

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