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Babcock International (GB:BAB)
LSE:BAB

Babcock International (BAB) Price & Analysis

588 Followers

BAB Stock Chart & Stats

1158.00 p
-1.00 p(-0.20%)
At close: 4:00 PM EST
1158.00 p
-1.00 p(-0.20%)

Bulls Say, Bears Say

Bulls Say
Service-led, Multi-year ContractsBabcock’s business is anchored in long-term, government service contracts that produce recurring revenue and high visibility. This model smooths demand cyclicality, supports predictable cash flows, and creates high switching costs vs. product vendors, sustaining revenue over multi-year horizons.
Improving Revenue And MarginsRecent organic growth with margin expansion and double-digit operating profit gains indicate operational leverage and execution on cost and productivity. Reaffirmed margin guidance (8% FY, 9%+ medium term) suggests management expects these structural improvements to persist into coming quarters.
Improved Leverage And High ROEReduction in leverage alongside very high ROE signals more efficient capital use and rising resilience to shocks. An improving balance sheet enhances flexibility for contract delivery, bidding on new work and targeted acquisitions, supporting sustainable growth and strategic optionality over months.
Bears Say
Free Cash Flow WeaknessA notable drop in free cash flow and modest operating cash conversion reduce financial flexibility for capex, buybacks, or working-capital demands on long contracts. If FCF underperformance persists it could constrain reinvestment, limit margin-improving projects, or increase reliance on debt.
Land Sector Revenue DeclineAn 11% organic drop in Land revenues erodes business diversification and creates persistent headwinds in that segment. Prolonged weakness in non-defence or rail exposure could reduce group growth and offset gains in other divisions, pressuring overall revenue and margin recovery.
Labor And Attrition PressuresStructural labour shortages in specialist areas (e.g., nuclear) increase recruitment and retention costs, limit capacity to win or deliver contracts, and can slow margin improvement. Over months, persistent skills gaps could constrain growth and raise contract delivery risk on complex, mission-critical programs.

Babcock International News

BAB FAQ

What was Babcock International’s price range in the past 12 months?
Babcock International lowest share price was 600.94 p and its highest was 1527.00 p in the past 12 months.
    What is Babcock International’s market cap?
    Babcock International’s market cap is £5.72B.
      When is Babcock International’s upcoming earnings report date?
      Babcock International’s upcoming earnings report date is Jul 24, 2026 which is in 114 days.
        How were Babcock International’s earnings last quarter?
        Babcock International released its earnings results on Nov 21, 2025. The company reported 0.28 p earnings per share for the quarter, beating the consensus estimate of 0.26 p by 0.02 p.
          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 2.5 p 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 495,171,080 shares outstanding.
                  What happened to Babcock International’s price movement after its last earnings report?
                  Babcock International reported an EPS of 0.28 p in its last earnings report, beating expectations of 0.26 p. 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

                      1,588.50 p
                      ▲(37.18% Upside)
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