EarningsQ4 2026 Earnings Report
MX:BABBN Q4 2026 EPS Results
Actual EPS$2.04
Consensus EPS$5.95
Beat/MissMissed by -$3.91
One Year Ago EPS$6.43
MX:BABBN Q4 2026 Revenue Results
Actual Revenue$63.31B
Expected Revenue$61.39B
Beat/MissBeat by +$1.91B
YoY Revenue Growth+8.95%
Earnings Announcement Details
QuarterQ4 2026
Date06/22/2026
TimeBefore Open
Conference CallMonday, June 22, 2026
MX:BABBN Upcoming Earnings
Babcock International's next earnings date is estimated for November 19, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q4 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a broadly positive picture: strong organic growth, margin improvement, robust cash generation and shareholder returns, and clear strategic opportunities (nuclear, AUKUS, exports). The main negative element is the Type 31 program cost reestimate (GBP 140m charge) and some sector-specific headwinds (Land revenue decline, infrastructure revenue phasing, and a lost Swedish export opportunity). Management has absorbed the Type 31 charge within guidance and reconfirmed medium-term targets, and balance-sheet strength and cash metrics mitigate near-term risks.Company Guidance
Strong Organic Revenue Growth
Organic revenue growth of 8% year-on-year (8% after Type 31 reversal, 10% before), outperforming mid-single-digit target and driven by Nuclear, Marine and Aviation.
Profitability and Margin Improvement
Operating profit up 19% to GBP 433 million; operating profit margin improved 70 basis points to 8.2% and Nuclear margin reached 9.5%.
Earnings and Cash Generation
Earnings per share up 20%; free cash flow of GBP 262 million, supported by 84% operating cash conversion and substantially reduced pension deficit payments.
Capital Return to Shareholders
Completed GBP 200 million buyback after year-end and announced a further GBP 200 million buyback for FY2027; dividend increased by 15%.
Sector Outperformance: Aviation and Cavendish Nuclear
Aviation revenues grew 34% driven by mobilization in France (Mentor 2), UK scope growth and Canadian BC HEMS; Cavendish (civil nuclear) grew 18% and submarine support grew 26%.
Balance Sheet and Guidance Reaffirmation
Investment grade balance sheet (BBB+); medium-term guidance reaffirmed: mid-single-digit organic revenue growth, 9%+ margins, and 80%+ operating cash conversion; Type 31 charge absorbed within guidance.
Strategic Opportunities and Partnerships
Significant contract and program opportunities highlighted: GBP 4 billion Indonesian framework; HII collaboration/AUKUS joint ventures and Virginia-class submarine build potential at Rosyth; owner's engineer role for SMRs (Rolls-Royce SMR).
Operational Execution Progress on Major Programs
Type 31 program continuing to progress operationally: Ship 1 outfitting; Ship 2 floated off; Ship 3 keel laid and block assembly underway; Ship 4 commenced—program delivering required capability despite cost reestimate.
MX:BABBN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed