Babcock International Group, the operator of Devonport dockyard in Plymouth, is predicting profits will rise to £363m, surpassing market expectations.
In a statement to its investors, the engineering heavyweight indicated that its underlying operating profit for the past year is anticipated to have surged by 17%.
The firm, which is currently managing a major overhaul of the infrastructure at Devonport, characterised its annual performance up to March 2025 as "strong". Babcock attributed the robust showing to the extension of positive trends observed in the third quarter.
While the figures are pending audit, Babcock anticipates revenues of £4.83bn, bolstered by an organic growth rate of 11%.
According to the group's report to the º£½ÇÊÓƵ Stock Exchange, this vigorous expansion is ongoing, particularly within its nuclear and marine divisions, both of which have a substantial presence in Plymouth.
The company also reported a "one-off benefit" of £5m in the marine sector during the first quarter of the year. Additionally, the group has successfully reduced its net debt, including leases, to £373m from £435m, or to £101m when excluding leases, a decrease from £211m.
At the end of March, Babcock's backlog of contracted work stood at £10.1bn, a rise from £9.5bn six months prior. The group views this as providing a "strong platform for sustained growth", reports .
This year, Babcock has secured two significant multi-year contracts. In January, the company clinched a deal to provide and support military air training for the French Air and Space Force and Navy, valued at up to €800m.
Last month, it also secured a five-year extension on its military land equipment support contract, worth approximately £1bn. This reinforces Babcock's role as a strategic partner to the British Army and lays the groundwork for the army's modernisation programme in the forthcoming decades.
Babcock's chief executive, David Lockwood, said: "In an uncertain world, we continue to see momentum across the business.
This has driven strong performance in all four of our divisions in the fourth quarter, resulting in full-year underlying operating profit ahead of expectations.
"Our experience, know-how and application of technology play a critical role in ensuring that our customers are ready to respond to ever-changing global threats."
