Babcock International has reported a robust financial performance for the year ending 31 March 2025, with strong gains in revenue, operating profit, and free cash flow across all divisions.
According to a trading update published today, unaudited figures show the Group achieved revenue of £4.83 billion, up 11% organically, driven largely by its Nuclear and Marine sectors.
Underlying operating profit rose 17% year-on-year to £363 million, with a 7.5% margin and operating cash conversion of approximately 80%.
“In an uncertain world, we continue to see momentum across the business,” said CEO David Lockwood. “Our experience, know-how and application of technology play a critical role in ensuring our customers are ready to respond to ever-changing global threats.”
The Group’s contract backlog rose to £10.1 billion, up from £9.5 billion at the half-year, and includes two major fourth-quarter wins: a French military air training contract worth up to €800 million, and a five-year, £1 billion UK land equipment support extension.
Net debt fell to £373 million, or £101 million excluding leases, supported by a free cash flow of £153 million—despite a £40 million accelerated pension deficit contribution. Babcock says its long-term pension funding arrangements are now finalised across all three of its main schemes.
Full preliminary FY25 results will be published on 25 June 2025. Babcock will also host a civil nuclear business teach-in on 20 May at the London Stock Exchange.
If this company doubles it’s efforts producing (and fixing) quality kit quickly then I can see it’s profits rising yet further and it’s order pipeline requiring more facilities & people to service those orders.
“ Underlying operating profit rose 17% year-on-year to £363 million, with a 7.5% margin and operating”
Interesting as a net profit of 5-8% is the reasonable range. So even in make hay times profits are OK but not overwhelming.
If you can’t make a profit running a defence company at the moment, then you are doing something wrong.
NOT INTERESTED TAKE ME OFF YOUR CHANNEL AND MAILING LIST.
And today on not understanding how the internet works….
Take me off this Web site it was not what I expected or wanted I don’t want any emails from you adds or calls
We haven’t phoned you, what?!