UK defence contractor Babcock has recorded revenue of £2.40bn ($3.04bn) for the first half of 2025 (H1 FY 2025), marking an 11% rise from £2.17bn in the same period in the previous year.
This growth is attributed to the performance of its marine, land, and nuclear divisions while the aviation sector experienced a slight decline year-on-year.
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Marine revenue rose by 5% to £789.8m in H1 FY 2025, compared to £750.1m in the previous year.
This increase was driven by the first year of the Skynet programme, higher LGE volumes, and support for Canadian submarines, among other factors.
Nuclear revenue saw an increase of 22%, reaching £865.7m in H1 FY 2025.
Land revenue also grew by 8% to £591.3m while aviation revenue declined by 5% to £162.1m compared to the same period last year.
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By GlobalDataFor the first six months ending 30 September 2024, Babcock’s underlying operating profit was £168.8m, an increase from £154.4m in the same period in 2024.
The company’s underlying profit before tax was £157.1m in HY25.
Underlying basic earnings per share (EPS) in H1 FY 2025 were 23.5p, up from 20.6p in H1 2024 while underlying diluted EPS rose to 23.0p from 20.1p in the same period last year.
During the period, Babcock secured a contract extension in Poland to support the Miecznik frigate programme until the delivery of three ships in 2031.
The company also made progress on the Type 31 inspiration class frigate programme, with three ships currently under construction.
Last month, steel was cut for the third Type 31 frigate, HMS Formidable, at Babcock’s Rosyth shipyard.
Additionally, Babcock completed the docking period for the aircraft carrier HMS Queen Elizabeth Class and delivered the survey phase on the Canadian HMCS Victoria Extended Docking Work Period contract.
Babcock CEO David Lockwood said: “We continue to focus on driving performance and sustainable growth. Working closely with our customers, we are consistently delivering key programmes and contracts, with enhanced standards of execution.
“Meanwhile, a backdrop of geopolitical instability means demand for what we do continues to increase, resulting in an expanding and attractive long-term opportunity set. We are selecting the right opportunities and are being disciplined in how we deploy capital to deliver growth which maximises shareholder value.”
Looking ahead, Babcock’s expectations for the FY 2025 remain unchanged. It expects to deliver mid-single-digit annual revenue growth with operating margins of 8% and an operating cash conversion of 80%.
