Babcock International Group (LON:BAB) Announces Earnings Results

Posted by Stanley Muller on Jun 24th, 2026

Babcock International Group (LON:BAB – Get Free Report) issued its quarterly earnings results on Monday. The company reported GBX 42.10 earnings per share for the quarter, Digital Look Earnings reports. The firm had revenue of GBX 517.77 billion for the quarter. Babcock International Group had a return on equity of 31.57% and a net margin of 4.08%.

Here are the key takeaways from Babcock International Group’s conference call:

Babcock reported strong FY 2026 underlying performance, with organic revenue growth of 8%, operating margin up 70 bps to 8.2%, operating profit up 19% to £433 million, and EPS up 20%.
The company took a £140 million charge on the Type 31 frigate program after rework and productivity issues, although management said the cash impact is spread over the remaining life of the contract and absorbed within guidance.
Cash generation remained strong, with 84% cash conversion and free cash flow of £262 million, supporting a strong balance sheet and continued shareholder returns, including another £200 million buyback in FY 2027 and a 15% dividend increase.
All major sectors improved, led by Nuclear and supported by Marine and Aviation, while Land saw mixed results due to weaker civil activities; management said Nuclear already exceeds its 9% margin target and the group remains on track toward 9%+ medium-term margins.
New CEO Harry Holt outlined a strategy centered on defense, civil nuclear, hybrid warfare, warfighting readiness, and national strategic resilience, while emphasizing capital discipline and a smooth leadership transition.

Babcock International Group Trading Down 1.4%

Shares of BAB opened at GBX 990.20 on Wednesday. The company has a debt-to-equity ratio of 178.86, a quick ratio of 0.76 and a current ratio of 0.80. The company has a market cap of £4.84 billion, a price-to-earnings ratio of 17.75, a PEG ratio of 1.35 and a beta of 0.89. The stock has a fifty day moving average price of GBX 1,080.05 and a two-hundred day moving average price of GBX 1,246.95. Babcock International Group has a 52-week low of GBX 934.76 and a 52-week high of GBX 1,527.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. Royal Bank Of Canada upped their price target on shares of Babcock International Group from GBX 1,280 to GBX 1,400 and gave the company an “outperform” rating in a research report on Friday, May 15th. Jefferies Financial Group reissued a “buy” rating and set a GBX 1,400 target price on shares of Babcock International Group in a research note on Monday. JPMorgan Chase & Co. lowered their price target on Babcock International Group from GBX 1,700 to GBX 1,500 and set an “overweight” rating on the stock in a report on Thursday, May 14th. Finally, Citigroup upgraded shares of Babcock International Group to a “buy” rating and set a GBX 1,554 price objective for the company in a research note on Wednesday, April 1st. Five equities research analysts have rated the stock with a Buy rating, According to MarketBeat, Babcock International Group currently has an average rating of “Buy” and an average price target of GBX 1,504.80.

View Our Latest Research Report on Babcock International Group

Key Babcock International Group News

Here are the key news stories impacting Babcock International Group this week:

Positive Sentiment: The company reported ongoing underlying growth in its core defence and nuclear businesses, which supports the view that operational momentum remains intact despite one-off charges. Babcock sees underlying growth despite frigate setback
Positive Sentiment: Babcock also announced a large share buyback program and said it is increasing shareholder returns, which can be supportive for the stock. Babcock International launches $265 million buyback program; pretax profit falls
Positive Sentiment: Jefferies reaffirmed its “buy” rating and set a GBX 1,400 price target, suggesting analysts still see upside from current levels. Broker views
Neutral Sentiment: The company posted quarterly EPS of GBX 42.10 and revenue of GBX 517.77 billion, reinforcing that the business remains profitable even as earnings headlines were dominated by the charge. Conference call transcript
Negative Sentiment: Annual profit fell after a frigate cost hike/charge, and several reports noted the stock slid as fiscal 2026 profit dropped in line with guidance, which likely pressured the shares. Babcock International Shares Slide as Fiscal 2026 Profit Drops

About Babcock International Group

(Get Free Report)

Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, information and intelligence, equipment and system, and facilities and infrastructure services, as well as naval platforms; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment.