Business
Q3 trading update and upgrade of FY25 expectations
Q3 trading update and upgrade of FY25 expectations.
About this update from Babcock International Group Plc
[{"type":"text","content":"\n\n\n \n \n6 February 2025\n \nThis announcement contains inside information\nThird quarter trading update and upgrade of full year expectations\n \nBabcock International Group PLC (\"Babcock\" or \"the Group\") provides an update on trading for the nine months of the financial year ending 31 March 2025 and upgrade of full year expectations.\n \nThe strong trading performance reported at HY25 continued throughout the third quarter of the year, and the preliminary view of performance in the month of January is also encouraging.\n \nThe majority of revenue for the year is now under contract and, having reviewed the delivery forecast for the remainder of the year, the Board now expects both revenue and underlying operating profit to exceed the top end of the range of analyst expectations1. Accordingly, we are upgrading our expectations for FY25 to c.£4.9 billion of revenue, with the expected overperformance due to double-digit organic growth in Nuclear and strong growth in Marine.\n \nIn Nuclear, growth is driven by increased new build and decommissioning work in civil nuclear, as well as increased submarine support activity and higher than originally expected infrastructure revenues. In Marine, the growth is enhanced by higher LGE volumes as well as the ramp-up of the Skynet programme.\n \nBabcock Chief Executive David Lockwood said: \"Today's announcement demonstrates that successful execution of our strategy is continuing to deliver value for all our stakeholders. Our engineering skills and know-how are in ever greater demand and with significant opportunities before us, I look forward to further profitable growth.\"\n \nOperational momentum\nWe continue to make good operational and strategic progress in the UK and internationally.\n \nIn January, HMS VICTORIOUS entered our 9-Dock facility in Devonport, marking a major milestone in the £560 million programme to modernise and refit the submarine. HMS VICTORIOUS is the second of the UK's four Vanguard Class submarines, which play a vital role as part of the UK's continuous at sea deterrent, to undergo a life extension programme. Moving the submarine into the dock enables us to deliver the work required to return this critical national defence asset back to the Royal Navy to continue operational patrols into the 2030s.\n \nWe ...