Babcock International Group PLC/£BAB
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About Babcock International Group PLC
Ticker
£BAB
Sector
Primary listing
LSE
Employees
29,381
Headquarters
Website
BAB Metrics
BasicAdvanced
£6.1B
25.42
£0.48
1.38
£0.07
0.53%
Price and volume
Market cap
£6.1B
Beta
1.38
52-week high
£13.32
52-week low
£4.61
Average daily volume
2M
Dividend rate
£0.07
Financial strength
Current ratio
0.898
Quick ratio
0.744
Long term debt to equity
157.301
Total debt to equity
164.989
Dividend payout ratio (TTM)
10.81%
Interest coverage (TTM)
6.65%
Profitability
EBITDA (TTM)
429.6
Gross margin (TTM)
7.59%
Net profit margin (TTM)
5.11%
Operating margin (TTM)
7.47%
Effective tax rate (TTM)
24.37%
Revenue per employee (TTM)
£160,000
Management effectiveness
Return on assets (TTM)
6.21%
Return on equity (TTM)
48.43%
Valuation
Price to earnings (TTM)
25.417
Price to revenue (TTM)
1.272
Price to book
10.2
Price to tangible book (TTM)
-20.37
Price to free cash flow (TTM)
34.036
Free cash flow yield (TTM)
2.94%
Free cash flow per share (TTM)
0.358
Dividend yield (TTM)
0.53%
Growth
Revenue change (TTM)
10.05%
Earnings per share change (TTM)
49.07%
3-year revenue growth (CAGR)
5.61%
10-year revenue growth (CAGR)
1.91%
3-year earnings per share growth (CAGR)
14.35%
10-year earnings per share growth (CAGR)
-0.91%
10-year dividend per share growth (CAGR)
-12.10%
What the Analysts think about BAB
Analyst ratings (Buy, Hold, Sell) for Babcock International Group PLC stock.
Bulls say / Bears say
Babcock posted 11% organic revenue growth for FY25 to £4.8 billion, and a 51% increase in operating profit to £364 million, benefitting from strong Nuclear and Marine business performance, and supported by a contract backlog of £10.4 billion.
The company confirmed FY26 guidance with revenue expected at £5.05 billion, underlying operating profit at £401 million, and raised medium-term targets to mid-single-digit revenue growth, at least a 9% operating margin, and 80% cash conversion.
Babcock secured a five-year, £1 billion contract extension from the UK Ministry of Defence to maintain Challenger 2 tanks, 105 mm artillery, and armoured vehicles, improving revenue visibility through 2030.
Revenue in the Land segment was weighed down by lower rail business revenues, partially offsetting Marine division growth and revealing ongoing execution challenges outside of the Nuclear segment.
The Group still carries significant defined benefit pension liabilities of over £2.7 billion, requiring annual deficit repair contributions of around £20 million, which could create volatility in future cash flows.
UK defence and intelligence spending is capped at 2.6% of GDP through this parliament, below the NATO target of 3.5%, and may limit budget increases that support Babcock's main revenue stream.
Data summarised monthly by Lightyear AI. Last updated on 7 Oct 2025.
BAB Financial Performance
Revenues and expenses
BAB Earnings Performance
Company profitability
Data displayed above is indicative only and its accuracy or completeness is not guaranteed. Actual execution price may vary. Past performance is not indicative of future results. Your return may be affected by currency fluctuations and applicable fees and charges. Capital at risk.
Market data provided by CBOE Europe and Deutsche Börse.
Capital at risk
Upcoming events
No upcoming events
FAQs
What’s the current market cap for Babcock International Group PLC stock?
Babcock International Group PLC (BAB) has a market cap of £6.1B as of October 25, 2025.
What is the P/E ratio for Babcock International Group PLC stock?
The price to earnings (P/E) ratio for Babcock International Group PLC (BAB) stock is 25.42 as of October 25, 2025.
Does Babcock International Group PLC stock pay dividends?
Yes, the Babcock International Group PLC (BAB) stock pays dividends to shareholders. As of October 25, 2025, the dividend rate is £0.065 and the yield is 0.53%. Babcock International Group PLC has a payout ratio of 10.81% on a trailing twelve-month basis.
When is the next Babcock International Group PLC dividend payment date?
The next Babcock International Group PLC (BAB) dividend payment date is unconfirmed.
What is the beta indicator for Babcock International Group PLC?
Babcock International Group PLC (BAB) has a beta rating of 1.38. This means that it is more volatile than the market, on average. A beta of 1 would indicate the stock moves in-line with the market, while a beta of 2 would indicate the stock moves twice as much as the market.