Babcock International: F26 results in line with pre-release; near-term uncertainty from UK politics but strong medium-term prospects

Research evidence excerpt

Babcock International: F26 results in line with pre-release; near-term uncertainty from UK politics but strong medium-term prospects

C A Z E N O V E Europe Equity Research

22 June 2026

Babcock International

F26 results in line with pre-release; near-term Overweight

uncertainty from UK politics but strong medium-term BAB.L, BAB LN

prospects Price (19 Jun 26):1,046.0p

Price Target (Dec-27):1,500.0p

This morning BAB has reported results for YE Mar 2026 (F26) in line with the European Aerospace & Defense

ACdetailed pre-release of May 13th. There is no material new info in the release and David H Perry, CFA

we have not changed our forecasts (Table1). Over the weekend many news (44-20) 7742-5606

agencies suggested that the UK Prime Minister could resign. The most likely david.h.perry@jpmorgan.com

candidate to be the new PM is Andy Burnham, who has expressed support for Lucy Fitzgerald

higher defence spending and manufacturing in the UK. This could be positive for (44 20) 3493-5251

BAB in the medium term. However, in the short term, we think that a change in PM lucy.fitzgerald@jpmorgan.com

J.P. Morgan Securities plc

could delay some contract awards (e.g. the new FMSP submarine maintenance

contract). In our view, this is only a matter of timing and it would be unlikely to Specialist Sales contact details:

impact BAB’s financial results. Lastly, we continue to believe that BAB could win

Sam Edmunds - Specialist Sales -

numerous international contracts in this financial year, which could bring upside European Industrials

to our medium-term estimates. (44-20) 7742-8733

sam.edmunds@jpmorgan.com

• Noteworthy areas: There are no surprises today, as all the key numbers were Style Exposure

in the pre-release. (1) Organic sales growth was 10% (the 4th year of DD