Babcock International Group PLC on Thursday said trading in the first five months of its financial year was encouraging, with organic revenue growth and margin progress keeping it on track to meet expectations.
Ahead of its annual general meeting, the London-based aerospace, defence and nuclear engineering company said growth in Nuclear, Aviation and Marine businesses offset weaker revenue in its Land unit, which was hit by lower activity in Rail. Guidance for the full year and medium term is unchanged.
In its 2025 results, Babcock set medium-term guidance of mid-single digit average revenue growth, an underlying operating margin of at least 9%, and average cash conversion of at least 80%.
In recent months, Babcock has secured a string of contracts, including £65 million for its type 31 frigate programme, £114 million for submarine defueling at Devonport, and an A$250 million, eight-year follow-on deal with the Australian Border Force.
Its AUKUS joint venture with HII won its first supply chain contract in Australia, while the company also launched Nomad, its first fully AI-powered intelligence product.
Babcock has also completed around 25% of a £200 million share buyback programme and refinanced its revolving credit facility with a new £600 million arrangement, expandable by £200 million.
The half-year results for the period ended September 30 will be released on November 20.
Shares in Babcock were 1.8% lower at 1,208.00 pence each in London early Thursday.
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