Babcock International (BAB.L) Reports FY26 Profit Drop, Backlog Decline; Ups Dividend, Reiterates FY27 Outlook

Babcock International (BAB.L) reported a decline in underlying operating profit and contract backlog for fiscal year 2026, while simultaneously increasing its dividend and reaffirming its fiscal year 2027 and mid-term guidance. Shares of the aerospace and defense company fell 7.8% in early London trading on June 22, 2026, following the mixed financial update. For the fiscal year ended March 31, 2026, Babcock's underlying operating profit decreased to £246.2 million from £291.1 million in FY25. The company's contract backlog also saw a reduction, falling to £9.9 billion from £10.9 billion in the previous fiscal year. Despite the profit and backlog drops, Babcock raised its final dividend to 3.6 pence per share, up from 1.2 pence. The company maintained its FY27 underlying operating profit guidance range of £270 million to £285 million, and reiterated its mid-term targets for high single-digit percentage revenue growth and operating margin improvement.