Babcock International Reaffirms 2027 Outlook Amid Defense Spending Surge

Babcock International reaffirmed its full-year fiscal 2027 outlook on Wednesday, reporting strong momentum across its land, nuclear, and marine business segments. The company attributes this growth to a rise in defense spending triggered by the Iran war and broader geopolitical tensions. Analysts project fiscal 2027 sales of £5.49 billion and an underlying operating profit of £464 million.

To support its financial position, the group issued a £250 million six-year sterling bond and initiated a £200 million share buyback program. The company is currently awaiting specific details from the British government regarding a £15 billion expanded defense investment, which is part of a larger £298 billion four-year spending plan.

In a leadership transition, Harry Holt formally became chief executive on July 31. Former CEO David Lockwood will continue to provide support to the organization until January 2027.