Business
AGM trading update
Babcock International Group reported encouraging trading for the first five months of the financial year, with organic revenue growth and underlying operating margin progress in line with expectations. Strong growth in Nuclear and Aviation was partially offset by lower revenue in Land. Full-year expectations remain unchanged, with continued progress towards medium-term guidance, including average revenue growth of mid-single digit, an underlying operating margin of at least 9%, and average operating cash conversion of at least 80%. The company secured a c£65 million contract for the Type 31 frigate programme and a £114 million contract for submarine disposal. Additionally, a new AU$250 million, 8-year contract was signed with the Australian Border Force. The company has completed around 25% of its £200 million share buyback program and entered into a new £600 million revolving credit facility, with an option to increase it by £200 million. Disclaimer*
About this update from Babcock International Group Plc
[{"type":"text","content":"\n\n25 September 2025\n \nBabcock International Group PLC\n\nAGM trading update\n \nContinued positive momentum, full year expectations unchanged\n \nBabcock International Group (\"Babcock\" or \"the Group\") provides a trading update for the first five months of the financial year ahead of its Annual General Meeting to be held at 11.00 am today.\nTrading update to 31 August 2025\nTrading in the first five months to 31 August 2025 has been encouraging, with the Group delivering organic revenue growth and underlying operating margin progress in line with the Board's expectations. \nStrong growth in Nuclear, driven by civil nuclear projects and submarine support, and Aviation, as a result of the ramp-up of the French Mentor 2 contract, and ongoing growth in Marine was partly offset by lower revenue in Land, due to lower activity in the Rail business.\nOverall, expectations for the full year remain unchanged and we continue to progress towards the Group's medium-term guidance, which we upgraded in June 2025 to average revenue growth of mid-single digit, underlying operating margin of at least 9% (previously at least 8%) and average operating cash conversion of at least 80%.\nDevelopments in the period\nThe macro environment remains supportive, and we continue to make good strategic progress. In the period we welcomed the UK Government's Defence Industrial Strategy, which strongly aligns with our capabilities. Babcock's business momentum has continued through the period with sustained delivery and strategic progress to support future growth.\n· Type 31 frigate programme - in April we were awarded a c£65 million Capability Insertion Programme contract on a sole source basis. In June, a major milestone was reached with float-off of the first ship, HMS Venturer. The second ship, HMS Active, is on track to float-off before the end of FY26.\n \n· Submarine disposal - in June we secured a £114 million contract to support the first defueling of a decommissioned British nuclear submarine in over 20 years. We will work with the UK Defence Nuclear Enterprise and industry partners to prepare for the defuel of four decommissioned submarines at our Devonport facility from 2026.\n \n· AUKUS - our joint venture with HII in...