Babcock International Group Plc · LSE:BAB
Babcock International — Investor Day (September 2025)
59 slides from Babcock International's investor day presentation, Sep 4, 2025
Slide 1: Marine investor day
Marine investor day Rosyth, Scotland 4 September 2025
Slide 2: Agenda
Agenda Session 1 Welcome Andrew Gollan Opening remarks David Lockwood Marine overview Sir Nick Hine Design and build Paul Watson Foundation for growth Ilgi Kim Q&A Session 2 Support Phil Craig Improved outcomes Sir Nick Hine Q&A Rosyth Royal Dockyard Gareth Hedicker Rosyth site tour Summary 2 Babcoc
Slide 3: Opening remarks
Opening remarks David Lockwood CEO 3
Slide 4: Marine overview
Marine overview Sir Nick Hine CEO Marine
Slide 5: Marine key messages
Marine key messages Strong platform for growth with unparalleled specialist capabilities and high barriers to entry Structural growth from global naval fleet recapitalisation Increased opportunity set led by design and build activities (>£17bn pipeline+) and long-term support (£5bn pipeline+) Organi
Slide 6: Marine: a major global naval partner
Marine A major global naval partner Babcock Group Marine FY25 Marine FY25 revenue FY25 revenue revenue by Market by business segment 7% 18% 17% 16% 33% 23% £4.8bn £1.6bn 53% £1.6bn 26% 29% 41% 37% Marine Nuclear Defence UK Land Aviation Defence International Design and build Support £0.9bn Civil Int
Slide 7: Marine – design, build and support: what we do
Marine – design, build and support: what we do Design, develop, manufacture and integrate specialist systems, and deliver technical through-life support Design Build Support Complex platforms, systems and Digitally-enabled, high-integrity Through-life support, life extension equipment design for thr
Slide 8: Marine - design, build and support
Marine - design, build and support Over 5,300 colleagues Strong pipeline: significant across: UK (70%), Australia, Long-term contracts and growth potential from global New Zealand, Canada, Poland, framework agreements naval shipbuilding and long- Ukraine, South Korea, Brazil, with decades of experie
Slide 9: Marine: major global naval partner
Marine: major global naval partner Industrial partners Government partners UK DEFENCE ROYAL ROYAL INDONESIAN POLISH ROYAL EQUIPMENT AUSTRALIAN CANADIAN NAVY NAVY ROYAL NEW ZEALAND NAVY & SUPPORT NAVY NAVY NAVY SWEDISH ROYAL DANISH SOUTH US UKRAINIAN ROYAL NAVY DANISH DEFENCE KOREAN Defence Materiel
Slide 10: Marine: unparalleled specialist capabilities
Marine: unparalleled specialist capabilities Distinctive skillset driving sustainable value Advanced manufacturing Integration capability Product development Engineering excellence Operational advantage From concept to capability delivery through digital innovation through collaboration • Partner wi
Slide 11: Marine: our differentiators
Marine: our differentiators • Skilled workforce of over 5,300 People • Skills, technology and capability training agenda to support growth Specialist • Deep technical competence building and supporting systems and platforms – ability to deliver with agility engineering capability • Leading edge tech
Slide 12: Marine: our journey
Marine: our journey A transformed platform for growth Pre 2010s: 2010s: 2020s: 2025+ Formation of modern Growth into sovereign Transformation into global World-class naval build and Babcock Marine naval prime partner naval partner support capability • 1997: Acquisition of • 2010s: Key contracts for
Slide 13: How we developed a leading naval shipbuilding capability
How we developed a leading naval shipbuilding capability Positioned to address global opportunities Naval New processes Developed Export Organic design and controls digital shipyard positioning investment • Acquired design rights • Lessons learned from • Construction of a new • Flexible frigate • Na
Slide 14: UK Type 31 Inspiration Class frigate programme today
UK Type 31 Inspiration Class frigate programme today • Five ship programme – on track to be delivered by FY30 • Production status • First of class – HMS Venturer: float-off in May, final fit out and integration of combat systems under way in dock • Ship 2 – HMS Active: late-stage assembly, float off
Slide 15: Arrowhead 140
Arrowhead 140 Already winning in the global market Frigate Indonesia Poland programmes Merah Putih frigate Miecznik frigate • Three AH140 licences sold in 2024 Contracts • Two AH140 licences sold in 2022 • Design, engineering, supply chain support awarded • Design, engineering, supply chain support
Slide 16: Marine: growth strategy
Marine: growth strategy Simpler, more focused approach, concentrating on priorities with impact Strong focus Become Strategic build and Grow on shipbuilding multi-domain naval prime support partner internationally and manufacture (ships – subs – build - support) How we deliver our growth • Expand gl
Slide 17: Marine – design, build, support: growth dynamics
Marine – design, build, support: growth dynamics FY25 Medium-term Activity Pipeline+ Commentary revenue expectations • Shipbuilding (>£16bn) Design £500m-600m • Advanced manufacturing (<£1bn) and £260m >£17bn revenue by • Significant global opportunities • Manufacturing programmes FY30 build • Long-
Slide 18: Marine: summary
Marine: summary Strong platform for growth with unparalleled specialist capabilities and high barriers to entry Structural growth from global naval fleet recapitalisation Increased opportunity set led by design and build activates (>£17bn pipeline+) and long-term support (£5bn pipeline+) Organic inv
Slide 19: Design and build
Design and build Paul Watson MD Arrowhead 19
Slide 20: Design and build: key messages
Design and build: key messages Major long-term structural global defence market drivers Strong position: leading naval shipbuilding and advanced manufacturing capabilities, and well developed infrastructure Accelerating adoption of digital tools, capabilities and people strategy Opportunity for disc
Slide 21: Design and build: what we do
Design and build: what we do Design Ship build Engineering support Advanced manufacturing Complex platforms, systems and Digitally-enabled, high-integrity Transfer of knowledge and Digitally-enabled, high-integrity equipment design for through-life advanced manufacturing of engineering to develop in
Slide 22: Design and build today
Design and build today Revenue • Around 1,700 colleagues delivering for defence customers £246m across: UK, USA, Poland, Indonesia and Sweden • Long-term build contracts and short-term licence sales • Competition: Global OEMs and smaller local shipyards Shipbuilding • Significant pipeline to be deci
Slide 23: Design and build: our differentiators
Design and build: our differentiators World-class, differentiated ship and equipment manufacturing base with exportability • Skilled workforce of over 1,700 People • Skills, technology and capability training agenda to support growth • Owned IP with design authority Specialist • Advanced shipbuildin
Slide 24: Advanced manufacturing
Advanced manufacturing What we do • The UK’s first large scale, digitally enabled advanced manufacturing facility, delivering high integrity, large scale, structural manufacturing of complex defence components and structures • Very high barriers to entry: low tolerance, digital precision engineering
Slide 25: Market dynamics
Market dynamics Increasing global threat leading to re-focus on naval capabilities Drivers Dynamics • Rising global naval investment across allied nations • Focus on speed of delivery Global defence Availability • NATO rearmament commitments spending increases • Industrial base revitalisation and re
Slide 26: Design and build: summary
Design and build: summary Strong position: leading naval shipbuilding and advanced manufacturing capabilities, and well developed infrastructure Major long-term structural global defence market drivers Accelerating adoption of digital tools, capabilities and people strategy 26 Babcock International
Slide 27: Design and build: Our foundation for growth
Design and build: Our foundation for growth Ilgi Kim Chief Commercial Officer 27
Slide 28: Design and build: strategy to address the opportunity
Design and build: strategy to address the opportunity Targeted, advanced international platforms delivered with investment Focus International on targeted Digitisation, partnerships programmes automation, autonomy • UK and in-country build capabilities • Strategic geographic access • Exportable plat
Slide 29: Shipbuilding: significant medium-term opportunities
Shipbuilding: significant medium-term opportunities Long-term opportunities (> 10 years) Focused medium-term opportunities £460bn Global programmes+ £88bn >£23bn >£16bn Total market Addressable+ Based on our capabilities • 400+ programmes Pipeline + tracking Pipeline • c.2,000 ships decided over fiv
Slide 30: Shipbuilding: targeted near-term campaigns
Shipbuilding: targeted near-term campaigns >£16bn Medium-term guidance based on Decided over three years Strong incumbent positions winning two new programmes, National shipbuilder 5 20+ • representing • Long-term support partner • Embedded in current programmes £250m-350m additional Major build Shi
Slide 31: Advanced manufacturing: significant long-term potential
Advanced manufacturing: significant long-term potential Long-term opportunities (> 10 years) Focused medium-term opportunities Long-term tracking and prospecting opportunities >£2bn Medium-term pipeline >£500m Decided over 10+ years Decided over 3 years • Global SMRs and AMRs • Missile Tube Assembli
Slide 32: Design and build: long term visibility and opportunity
Design and build: long term visibility and opportunity A strong, diverse and international pipeline for sustained growth Focus Area Today 2050 UK Type 31 Multi-Role Strike Ship / Type 83 Sweden Sweden (development) Poland Poland follow on Europe Denmark Denmark follow on Shipbuilding Further Europea
Slide 33: Design and build: summary
Design and build: summary Major long-term structural global defence market drivers Strong position: leading naval shipbuilding and advanced manufacturing capabilities, and well developed infrastructure Accelerating adoption of digital tools, capabilities and people strategy Opportunity for disciplin
Slide 34: Q&A
O&A Babcock
Slide 35: Support
Support Phil Craig MD Programmes
Slide 36: Support: key messages
Support: key messages Shipbuilding and navy recapitalisation driving long-term growth opportunities Strong positions built over decades with support in focus countries Provide services to support availability, capability, affordability Leverage advanced digital support, operational asset knowledge,
Slide 37: Support: what we do
Support: what we do Long-term partner to global navies, providing through-life engineering for availability of warships, conventional submarines and equipment Focus area Support portfolio today Delivering Queen Elizabeth Class (QEC) carriers • In-service support for warships and conventional submari
Slide 38: Support today
Support today Revenue • Over 3,200 colleagues delivering for government customers across: UK, Australia, New Zealand, Canada, Ukraine, Brazil £650m • Long-term relationships, contracts and frameworks • Competition: OEMs and smaller local shipyards • UK contract backlog reflects final year of FMSP sh
Slide 39: Support: key contracts / programmes
Support: key contracts / programmes Technical through-life support across warships, conventional submarines and equipment UK Canada Australasia Second owners FMSP - Future Maritime Victoria In Service Regional Maintenance Brazil – Ukraine - Romania Support Programme Support Contract (VISSC) Provider
Slide 40: Support: market dynamics
Support: market dynamics Fleet recapitalisation, rising geopolitical risks and operational intensity Drivers Dynamics Global fleet • Build programmes driving long-term structural requirement for future support recapitalisation • Phasing of new build programmes driving need for availability and life-
Slide 41: Support: our differentiators
Support: our differentiators Specialist engineering • Deep technical competence and through-life operational asset knowledge supporting systems and platforms capability • Leading edge technologies and capabilities – Digital engineering, digital dockyard, predictive support Assets and • Owned UK dock
Slide 42: Support: strategy
Support: strategy Delivering integrated, through-life and digital solutions that maximise availability Secure next Increase generation technical of UK Accelerate differentiation contracts international growth • Delivering availability, capability, and • Secure future support contracts from affordabi
Slide 43: Digital support - predictive maintenance deep dive
Digital support - predictive maintenance deep dive Transforming support: We are embedding digital twins, predictive maintenance, and AI-enabled fleet management across support Reactive to predictive contracts, maximising availability, affordability, and positioning us as a leader in digitally enable
Slide 44: Support: long term visibility as new platforms enter service
Support: long term visibility as new platforms enter service A strong, diverse and international pipeline for long-term growth Focus area Portfolio today Medium-term Long-term FMSP Naval Support Integrated Global Network (NSIGN) Queen Elizabeth Class (QEC) carriers QEC carriers follow on support and
Slide 45: Support: summary
Support: summary Shipbuilding and navy recapitalisation driving long-term growth opportunities Strong positions built over decades with support in focus countries Provide services to support availability, capability, affordability Leverage advanced digital support, operational asset knowledge, exper
Slide 46: Improved outcomes
Improved outcomes Sir Nick Hine Marine CEO 46
Slide 47: Marine: improved outcomes
Marine: improved outcomes Marine Sector a key contributor to achieving the Group’s medium-term guidance, underpinned by: Growth Investment Margin • Significant opportunity in Design and • Developed one of Europe's most • Quality growth and improved delivery build - >£17bn pipeline+ – strong advanced
Slide 48: Investing for growth
Investing for growth Strengthening the business to capture growth opportunities Investment focus Outcomes • Develop employee skills and capability • Increased capability + innovation People • Cutting edge technology training from design to manufacture and testing • Higher engagement + retention • En
Slide 49: Margin journey – roadmap to 9%+
Margin journey – roadmap to 9% + Delivering on the pillars of margin improvement Zero margin legacy contract ‘fade’ Marine Sector on track to support Group Productivity medium-term margin target of 9%+ gains • Type 31 margin drag fading until FY30 9%+ margin (c.90 basis points vs FY25 Marine margin
Slide 50: Summary
Summary Marine: a strong pillar for sustainable growth and shareholder value Strong platform for growth with unparalleled specialist capabilities and high barriers to entry Structural growth from global naval fleet recapitalisation Increased opportunity set led by design and build activates (>£17bn
Slide 51: Q&A
O&A Babcock
Slide 52: Rosyth Royal Dockyard
Rosyth Royal Dockyard Gareth Hedicker Marine Chief Operating Officer
Slide 53: Rosyth's history
Rosyth’s history A long history with the UK Royal Navy and shipbuilding Over 100 years of Royal Naval history: from Edwardian era dockyard to advanced dockyard today • Constructed between 1900-1916 • 1940s+ major wartime naval base • 1960s+ nuclear submarine facility (30yrs) • 2000s+ aircraft carrie
Slide 54: Rosyth: overview
Rosyth: overview Direct Impact • 2,500 people and growing • What we do: Ship build, • Bespoke skills programmes support, advanced manufacturing, LGE, • Panel line operations (new technology) dismantling • Increasing early careers entry routes • Group synergies: Nuclear, • Over 200 apprentices and gr
Slide 55: What you'll see today
What you’ll see today HMS Venturer Submarine dismantling HMS Queen Elizabeth Venturer building Advanced shipbuilding Advanced manufacturing 55 Babcock International Group – Marine investor day 4 September 2025 © 2025 Babcock International Group - Not Subject to Export Control
Slide 56: Health and Safety
Health and Safety • Working dockyard with hazards • Stay in your groups • Assigned PPE, please use all PPE at all times • hi-vis, hard hats, glasses, gloves • Personal audio equipment will be provided on transport • Use handrails, stay within designated routes • Please be aware of heights in the Ven
Slide 57: Appendix
Appendix : ® Babcock
Slide 58: Marine – key contracts
Marine – key contracts Contract Customer Start End Country Notes Type 31 + Capability Insertion UK MOD 2019 2028 UK Design, build and assembly of five general purpose frigates for the Royal Navy Programme Future Maritime Support Programme UK MOD 2021 2026 UK Through-life ship engineering management
Slide 59: Disclaimer
Disclaimer This document has been prepared by Babcock International Group PLC By their nature, forward-looking statements involve known and unknown (the “Company”) solely for use at a presentation in connection with the risks, uncertainties and other factors, many of which are beyond Company’s Marin
Babcock International Group — Investor Day (September 2025) on 6ix