UK's Babcock retains annual forecast as defence spending backs momentum
UK's Babcock retains annual forecast as defence spending backs momentum Sept 16 (Reuters) - British defence and engineering group Babcock International BAB.L reaffirmed its full-year outlook on Wednesday on the back of strong momentum across its marine, nuclear and land businesses amid higher defence spending.
Here are some details from its trading update:
The company, which maintains Britain's naval fleet, provides weapons systems and supports nuclear projects, said its performance was supported by strong demand across core defence and nuclear markets
Babcock's update comes amid defence firms reaping benefits of militaries rearming heavily against heightened geopolitical tensions and the Iran war.
The firm which has several contracts with the British military said it was awaiting further details on the government's expanded defence investment after a £15 billion ($20.22 billion) plan was laid out in June in a boost for domestic suppliers.
Analysts per a company-provided poll expect Babcock to log 2027 sales of £5.49 billion and an underlying operating profit of £464 million, up from year ago's £5.19 billion and £293 million, respectively.
Larger rival BAE Systems BAES.L in July raised its 2026 profit outlook on soaring defence orders.
($1 = 0.7418 pounds)
(Reporting by Yamini Kalia and Prerna Bedi in Bengaluru)
((Yamini.Kalia@thomsonreuters.com))