UK's Babcock books $190 million charge on Type 31 frigate contract (updated)
13/05/2026 07:30
Adds more details on contract May 13 (Reuters) - Britain's Babcock BAB.L on Wednesday said it expects to incur a 140-million-pound ($189.64 million) charge on its Type 31 frigate contract due to higher-than-expected rework costs, though it kept its fiscal 2027 outlook unchanged. The defence contractor signed a fixed price contract to deliver five Type 31 frigates - a type of warship - to the Royal Navy in 2019. However, inflation and design-related rework have driven up costs, leaving Babcock with losses of more than 300 million pounds. Due to the contract's re-estimate, Babcock now expects to publish its audited preliminary results for fiscal 2026 in late June. ($1 = 0.7382 pounds) (Reporting by Yamini Kalia in Bengaluru; Editing by Janane Venkatraman) ((Yamini.Kalia@thomsonreuters.com))