Defence giant Babcock has posted a jump in profits for the first half, driven in part by demand from the nuclear and marine sectors.
Revenue for the six months to September 30 rose to £2.5bn - marginally up from £2.4bn a year earlier - while underlying operating profit increased 19 per cent to £201.1m. Basic earnings per share also rose from 25.7p to 33.7p.
The FTSE-100 group employs thousands of people in the South West, including at Devonport dockyard in Plymouth - one of the largest Naval support sites in Western Europe.
In a trading update on Thursday, Babcock said its contract backlog stood at £9.9bn for the period, reflecting "significant" land and aviation orders in the second half of 2025.
Meanwhile net debt, excluding leases, reduced by £90m over the period to £56m.
David Lockwood, chief executive, said: “Thanks to the skills and dedication of our people, Babcock continued its track record of profitable growth with a strong performance in the first half.
"Good momentum was underpinned by consistent delivery for our customers against a background of supportive market dynamics.
“We are on track to achieve our expectations for the full year and are pursuing exciting opportunities for sustainable growth and margin expansion, both in the Ƶ and internationally.”
Babcock confirmed an interim dividend of 2.5 pence per share - up 25 per cent.
"Our specialist capabilities continue to be highly relevant in the current uncertain geopolitical environment," the company said in a statement.
"With a clear strategy and a disciplined approach to capital allocation, we are positioning for opportunities that will sustain profitable growth over the long term."
In June, Babcock announced plans to initiate a £200m share buyback programme. On Thursday, the company confirmed that at the end of September it had executed £49m of the scheme.
Babcock said it expected to achieve an underlying operating margin of 8% for the 2026 financial year, and added that it had made "good progress" towards the medium-term guidance it set out in June.
