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Babcock International (GB:BAB)
LSE:BAB

Babcock International (BAB) Price & Analysis

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BAB Stock Chart & Stats

1299.00p
-1.00p(-0.20%)
At close: 4:00 PM EST
1299.00p
-1.00p(-0.20%)

Bulls Say, Bears Say

Bulls Say
Long-term Government ContractsBabcock's business is built on multi-year, mission-critical contracts (naval, submarine, aviation, training) with predominantly government customers. This creates durable, high-visibility recurring revenue, predictable workload phasing, and lower customer churn versus product cycles, supporting steady cash flows and planning horizon over 2–6 months and beyond.
Margin Improvement & ExecutionRecent margin expansion and a 19% rise in underlying operating profit reflect operational improvements and clearer program delivery. Management reaffirmed an 8% full-year margin target and medium-term 9%+ ambition, indicating structural efficiency gains and capacity investments that can sustain higher margins across core service lines if execution continues.
Strong Cash Generation & Capital ReturnsHigh cash conversion and meaningful free cash flow demonstrate the firm's ability to convert earnings into liquidity. That underpins a consistent capital allocation framework—dividend increases, buybacks and facility investment—enhancing financial flexibility to fund organic growth, targeted bolt-on M&A or further de‑leveraging over the medium term.
Bears Say
Modest Net ProfitabilityDespite recent margin gains, absolute net margins remain low for an engineering/services business, leaving limited buffer against contract cost overruns or pricing pressure. Thin profitability constrains reinvestment capacity and makes returns more sensitive to inflation, labor costs and one-off operational setbacks over a multi-month horizon.
Free Cash Flow DeteriorationA significant YoY fall in free cash flow and a low operating-cash-to-net-income ratio reduce headroom for discretionary spend. This increases sensitivity to working-capital swings on large programmes and can limit the company's ability to sustain M&A, capex or shareholder returns without tapping debt or delaying investments if weak cash trends continue.
Concentration & Programme RisksHeavy reliance on UK defence and public-sector programmes concentrates exposure to budget timing, recompete cycles and policy shifts. Sector-specific shocks (Land revenue declines, uneven Marine order replenishment) and persistent labour shortages raise delivery and margin risk across multi-year contracts, increasing the chance of revenue volatility and higher execution costs.

Babcock International News

BAB FAQ

What was Babcock International’s price range in the past 12 months?
Babcock International lowest share price was 600.94p and its highest was 1527.00p in the past 12 months.
    What is Babcock International’s market cap?
    Babcock International’s market cap is £6.47B.
      When is Babcock International’s upcoming earnings report date?
      Babcock International’s upcoming earnings report date is Jul 24, 2026 which is in 157 days.
        How were Babcock International’s earnings last quarter?
        Babcock International released its earnings results on Nov 21, 2025. The company reported 0.28p earnings per share for the quarter, beating the consensus estimate of 0.26p by 0.02p.
          Is Babcock International overvalued?
          According to Wall Street analysts Babcock International’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Babcock International pay dividends?
            Babcock International pays a Quarterly dividend of 2.5p which represents an annual dividend yield of 0.56%. See more information on Babcock International dividends here
              What is Babcock International’s EPS estimate?
              Babcock International’s EPS estimate is 0.25.
                How many shares outstanding does Babcock International have?
                Babcock International has 499,401,200 shares outstanding.
                  What happened to Babcock International’s price movement after its last earnings report?
                  Babcock International reported an EPS of 0.28p in its last earnings report, beating expectations of 0.26p. Following the earnings report the stock price went up 1.77%.
                    Which hedge fund is a major shareholder of Babcock International?
                    Currently, no hedge funds are holding shares in GB:BAB
                    What is the TipRanks Smart Score and how is it calculated?
                    Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                      Company Description

                      Babcock International

                      Babcock International Group PLC, together with its subsidiaries, provides value-add services for aerospace, defense, and security in the United Kingdom, rest of Europe, Africa, North America, Australasia, and internationally. The company operates through four segments: Marine, Nuclear, Land, and Aviation. It designs, procures, operates, and manages critical utility and process equipment; offers asset management, defense and maritime training, information and intelligence, equipment and system, and facilities and infrastructure services, as well as naval platforms; and designs, manufactures, and provides through-life support for mechanical and electrical systems and equipment. The company also offers naval architecture, engineering, and project management services; submarines and complex engineering services in support of various decommissioning programs and projects, training and operation support, new build program management, and design and installation; critical vehicle fleet management, and equipment support and training services for military and civil customers; and designs, assesses, manufactures, installs, maintains, and decommissions vehicles for police, fire and ambulance, civil service, military, and other security-focused organizations. In addition, it provides plain line track renewal services; and engineering services for track projects, signaling, telecommunications, and on-track plants. Further, the company offers critical engineering services to defense and civil customers, including pilot training, equipment support, and airbase management, as well as operates aviation fleets that provide delivering emergency services. Babcock International Group PLC was founded in 1891 and is headquartered in London, the United Kingdom.

                      Babcock International (BAB) Earnings & Revenues

                      BAB Stock 12 Month Forecast

                      Average Price Target

                      1,505.86p
                      ▲(15.92% Upside)
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