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Babcock International Group PLC (BAB.L)

Industrials Balanced

Babcock International is a British engineering giant that keeps complex equipment running for the military, emergency services, and nuclear sectors.

By the Sterling Almanac editorial team · plain-English, education only · how we check the numbers

£11.21
≈ 1,121p · London-listed shares are usually quoted in pence (GBX) elsewhere; the Almanac shows pounds (£1 = 100p).

Is Babcock International Group PLC a good stock for a UK beginner?

The honest version: There's no rating here and nothing for sale. In its favour: Strong position in essential national infrastructure. Worth weighing: Very thin net profit margins. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.

No rating · no target price · nothing for sale here
Price+111.1%
52-week range+8% past year
£11.21
Low £9.02High £15.27
Where today's price sits versus its past year - context, not a signal.
If you had put £1,000 into Babcock International Group PLC
£2,111+111%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.

How much has Babcock International Group PLC actually fallen?

−39%

Over the last 2 years of daily prices, Babcock International Group PLC fell as much as −39% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.

Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
£5.51B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
2.94M
Day range: The lowest and highest price the shares traded at during the latest day.
£11.18 – £11.54
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
£9.02 – £15.27
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
27.3
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
0.7%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.89
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.89
Calm
Wild
Roughly in step with the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +8% past week · ▲ +8% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Successful expansion into international defence markets.

The bear case

Loss of key long-term government partnerships.

What does Babcock International Group PLC do?

Babcock acts as a long-term partner for governments and large organisations, maintaining everything from warships and submarines to fire engines and nuclear power stations. They make their money through long-term service contracts that provide steady, predictable work over many years. What to follow is how well they run their large-scale projects and keep profit margins healthy while working through complex government budgets.

VQGMI
Factor profile

On our factor screen it looks strongest on income and quality, and weakest on value.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 33Quality: How profitable and financially healthy the company is (higher = stronger). 50Growth: How fast revenue and earnings are growing (higher = faster). 36Momentum: How the share price has been trending recently (higher = stronger recent run). 36Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 55
Quick checks
What's strong
  • Strong position in essential national infrastructure
  • Long-term contracts provide predictable revenue
  • High return on equity suggests efficient use of capital
What to watch
  • Potential for cost overruns on complex projects
  • Political changes affecting defence spending
  • Operational challenges in the nuclear sector

What do Babcock International Group PLC's numbers mean?

Forward P/E
13.7
This compares the share price to expected future earnings, suggesting investors are looking for a recovery in profitability over the coming year.
Lower than most of the 123 Industrials shares we cover
Net margin
4.1%
This shows that for every pound of revenue, the company keeps about four pence as actual profit after all expenses are paid.
Lower than most of the 123 Industrials shares we cover
Return on equity
33.7%
This measures how efficiently the company uses the money invested by shareholders to generate profit, with a higher number generally indicating better performance.
Higher than most of the 114 Industrials shares we cover
P/S
1.0
This ratio compares the company's total market value to its annual sales, showing that investors are currently paying roughly one pound for every pound of revenue the business generates.
Lower than most of the 123 Industrials shares we cover

Does Babcock International Group PLC pay a dividend?

Yes - Babcock International Group PLC currently pays a dividend of about 0.7% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

What do the numbers say about Babcock International Group PLC's dividend?

There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.

Dividend yield0.7%The yearly dividend as a percentage of today's price. A very high figure often means the price has fallen because the market expects a cut, so a big yield is a question to look into, not a prize.
Payout ratio17%The share of profit paid out as dividends. A lower figure leaves headroom; near or above 100% means most or all of the profit is going out as dividends.
Dividend cover5.9×Profit divided by the dividend (the payout ratio the other way up). As a rough convention many income investors like around 2× or more; below 1× means the company paid out more than it earned that year.

Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.

When does Babcock International Group PLC report earnings, and how did recent quarters go?

Babcock International Group PLC is next scheduled to report on about 2026-11-19 - dates can move, and we don't predict results; this just tells you when to look.

Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.

See who else reports over the next two weeks →

Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.

More in Industrials

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What are the scenarios for Babcock International Group PLC?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

£15£11£9today · £11▲ Bull · £12• Base · £11▼ Bear · £10in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+5% to +10%New government defence contracts are secured.
Base
-2% to +2%Steady operational performance continues.
Bear
-5% to -10%Unexpected delays in major engineering projects.

What are the pros and cons of Babcock International Group PLC?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Strong position in essential national infrastructure
  • Long-term contracts provide predictable revenue
  • High return on equity: How much profit the company makes for each £1 shareholders have put in. Higher usually means a more efficient business. suggests efficient use of capital
The catch3
  • Very thin net profit margins
  • Significant drop in recent earnings
  • Heavy reliance on government budgets
Key risks3
  • Potential for cost overruns on complex projects
  • Political changes affecting defence spending
  • Operational challenges in the nuclear sector
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: GBP · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-02. Prices may be delayed and numbers can go stale - always double-check before acting.