Babcock International Shares Rise After Upbeat AGM Trading Update

Babcock International Group (LON: BAB) shares are up on Wednesday after the FTSE 250 defence support group told shareholders at its Annual General Meeting that trading remained in line with expectations, with full-year guidance left unchanged.

The stock climbed as much as 2.8% in London trading to around 1,021.5p, up from a previous close of 993.6p, as investors welcomed confirmation that momentum from the first five months of FY27 had been sustained.

In its update, Babcock said Nuclear and Aviation continued to perform strongly, with demand across its core defence markets remaining robust. The company confirmed it remains confident of hitting its medium-term guidance.

The update also drew a line under the group’s leadership transition, with Harry Holt formally taking over as Chief Executive on 31 July, succeeding David Lockwood, who will stay on to support the handover until his retirement in January 2027. Holt said the business had “started FY27 with good momentum,” while flagging continued uncertainty around the timing of UK government spending under its Defence Investment Plan.

Investors also took comfort from Babcock’s capital allocation moves, including a further £200 million share buyback launched in July and a £250 million six-year sterling bond issued to extend its debt maturity profile.

Contract wins highlighted in the update included a CAD$1.2 billion extension to support Canada’s Victoria Class submarines and a preferred bidder position on an eight-year French Air Force combat training contract.

Babcock said it would publish half-year results on 19 November.