UK's Babcock retains annual forecast as defence spending backs momentum

By Reuters News

Sept 16 (Reuters) - British defence and engineering group Babcock International BAB.L reaffirmed its full-year outlook on Wednesday on the back of strong momentum across its marine, nuclear and land businesses amid higher defence spending.

Here are some details from its trading update:

  • The company, which maintains Britain's naval fleet, provides weapons systems and supports nuclear projects, said its performance was supported by strong demand across core defence and nuclear markets

  • Babcock's update comes amid defence firms reaping benefits of militaries rearming heavily against heightened geopolitical tensions and the Iran war.

  • The firm which has several contracts with the British military said it was awaiting further details on the government's expanded defence investment after a £15 billion ($20.22 billion) plan was laid out in June in a boost for domestic suppliers.

  • Analysts per a company-provided poll expect Babcock to log 2027 sales of £5.49 billion and an underlying operating profit of £464 million, up from year ago's £5.19 billion and £293 million, respectively.

  • Larger rival BAE Systems BAES.L in July raised its 2026 profit outlook on soaring defence orders.

($1 = 0.7418 pounds)

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