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Babcock announces FMSP contract bridging agreement
Babcock International Group PLC has secured a six-month bridging agreement under its Future Maritime Support Programme (FMSP) contract with the UK Ministry of Defence, ensuring continuity for critical naval base and nuclear submarine fleet support services following the completion of its previous five-year contract. This interim arrangement bridges to a new long-term agreement currently in final negotiation, supported by a Letter of Intent from the MOD reinforcing their commitment to a strategic partnership. The future agreement is expected to increase operations at key naval bases and Babcock's Devonport Royal Dockyard, facilitating the transition from the Vanguard to the Dreadnought Class submarines. Disclaimer*
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01 April 2026 Babcock announces FMSP contract bridging agreement Babcock International Group PLC (Babcock or the Group), the defence company, has agreed a six-month bridging agreement arranged under their Future Maritime Support Programme (FMSP) contract with the UK Ministry of Defence (MOD) to maintain continuity of our naval base and nuclear submarine fleet support services, critical to the UK. The contract bridging agreement follows the completion of the five-year FMSP support contract on 31 March 2026. The contract bridges to a new long-term agreement which is in the latter stages of negotiation with the MOD. A Letter of Intent from the MOD sits alongside the bridging agreement and reinforces the commitment to a long-term strategic relationship between the MOD, the Royal Navy and Babcock, and the critical contribution that Babcock makes to the UK defence capability, including as the sole provider of in-service submarine support to the Royal Navy. The future agreement supports the Government and Royal Navy's priorities and aligns with the Strategic Defence Review and Defence Industrial Strategy. It enables increased demand, scope and operations at His Majesty's Naval Bases Clyde and Devonport and Babcock's Devonport Royal Dockyard as well as the delivery of the transition from the Vanguard Class nuclear deterrent submarines to the Dreadnought Class. David Lockwood, CEO Babcock said: "The strength of Babcock's partnership with the Ministry of Defence and Royal Navy is critical to the increased availability and resilience of the UK's submarine fleet and the defence of our nation. This agreement with the Submarine Delivery Agency reinforces our joint intention to move to a new long-term agreement that will see even more investment in skills, communities and infrastructure, while growing this critical, sovereign capability, together." Sir Chris Gardner KBE, Submarine Delivery Agency, Chief Executive Officer , said: "This agreement provides continuity in the delivery of critical capabilities at a time of ever greater strategic importance for the UK's submarine programme whilst we finalise the negotiations of the longer-term agreement. The Ministry of Defence and Babcock have an enduring partnership, aligned around the government's mission to protect the nation. As we continue to work together towards our longer-term agreement, we are well positioned to build on this foundation, supporting sustained growth, strengthening the enterprise, and delivering against the UK's defence imperative." Together we're making a difference to UK regions, communities and families generating growth and prosperity through the defence dividend. ENDS For further information: Andrew Gollan, Director of Investor Relations +44 (0)7936 039004 Karen Mitchell, Director of Communications +44 (0)7568 103242 Harry Cameron / Camilla Cunningham, Teneo +44 (0)20 7353 4200
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