REG - Babcock Intnl Group - Babcock announces FMSP contract bridging agreement

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RNS Number : 9447Y  Babcock International Group PLC  01 April 2026

01 April 2026

 

Babcock announces FMSP contract bridging agreement

 

Babcock International Group PLC (Babcock or the Group), the defence company,
has agreed a six-month bridging agreement arranged under their Future Maritime
Support Programme (FMSP) contract with the UK Ministry of Defence (MOD) to
maintain continuity of our naval base and nuclear submarine fleet support
services, critical to the UK. The contract bridging agreement follows the
completion of the five-year FMSP support contract on 31 March 2026. The
contract bridges to a new long-term agreement which is in the latter stages of
negotiation with the MOD. A Letter of Intent from the MOD sits alongside the
bridging agreement and reinforces the commitment to a long-term strategic
relationship between the MOD, the Royal Navy and Babcock, and the critical
contribution that Babcock makes to the UK defence capability, including as the
sole provider of in-service submarine support to the Royal Navy.

 

The future agreement supports the Government and Royal Navy's priorities and
aligns with the Strategic Defence Review and Defence Industrial Strategy. It
enables increased demand, scope and operations at His Majesty's Naval Bases
Clyde and Devonport and Babcock's Devonport Royal Dockyard as well as the
delivery of the transition from the Vanguard Class nuclear deterrent
submarines to the Dreadnought Class.

 

David Lockwood, CEO Babcock said: "The strength of Babcock's partnership with
the Ministry of Defence and Royal Navy is critical to the increased
availability and resilience of the UK's submarine fleet and the defence of our
nation.  This agreement with the Submarine Delivery Agency reinforces our
joint intention to move to a new long-term agreement that will see even more
investment in skills, communities and infrastructure, while growing this
critical, sovereign capability, together."

 

Sir Chris Gardner KBE, Submarine Delivery Agency, Chief Executive Officer,
said: "This agreement provides continuity in the delivery of critical
capabilities at a time of ever greater strategic importance for the UK's
submarine programme whilst we finalise the negotiations of the longer-term
agreement. The Ministry of Defence and Babcock have an enduring partnership,
aligned around the government's mission to protect the nation. As we continue
to work together towards our longer-term agreement, we are well positioned to
build on this foundation, supporting sustained growth, strengthening the
enterprise, and delivering against the UK's defence imperative."

 

Together we're making a difference to UK regions, communities and families
generating growth and prosperity through the defence dividend.

 

ENDS

 

For further information:

 

Andrew Gollan, Director of Investor Relations    +44 (0)7936 039004

Karen Mitchell, Director of Communications        +44 (0)7568 103242

Harry Cameron / Camilla Cunningham, Teneo     +44 (0)20 7353 4200

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