Trading over the first five months has been in line with group expectations. Its Nuclear and Aviation divisions have continued to perform strongly, alongside robust demand in its core defence markets.
Harry Holt became CEO on 31 July, and the former CEO will remain with the group until January 2027 to assist with the transition.
Mid-term guidance remains unchanged, pointing to average organic revenue growth in the mid-single-digits and underlying operating margins of at least 9%.
A £200mn share buyback programme is underway and is expected to complete in March 2027.
The shares were broadly flat in early trading.
Our view
HL view to follow.
Babcock key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.