Babcock International Group (BAB.L), a British aerospace company, reported Monday lower profit for fiscal 2026, even as revenues were higher. Contract backlog declined, while the company raised annual dividend, and maintained outlook for fiscal 2027 and medium-term.
On the London Stock Exchange, the shares were losing around 4.11 percent, trading at 1,003.00 pence.
In the full year, profit before tax dropped to 283.7 million pounds from last year's 329.1 million pounds. Earnings per share were 41.3 pence, compared to 48.0 pence a year ago.
Underlying profit before tax was 267.2 million pounds, compared to 339.4 million pounds in the prior year. Underlying basic earnings per share were 39.6 pence, compared to last year's 50.3 pence.
Underlying earnings per share excluding Type 31 charge were 60.5 pence, compared to 50.3 pence last year.
Revenue for the year was 5.18 billion pounds, higher than prior year's 4.83 billion pounds. Revenues grew 8 percent organically, driven by strong performances in Nuclear and Aviation.
Contract backlog, meanwhile, dropped to 9.8 billion pounds from 10.4 billion pounds a year earlier.
Further, the company announced that a final dividend of 5.0 pence per ordinary share, higher than last year's 4.5 pence, is payable on September 25 to shareholders on the register on August 14. If approved by the Shareholders at the AGM on September 16, the total dividend for the year would be 7.5 pence, up 15 percent from prior year's 6.5 pence.
Looking ahead, Babcock said fiscal 2027 is expected to be another year of good progress, supported by strong revenue visibility with around 70 percent revenue under contract as of April 1, a similar percentage to the prior year.
Further ahead, the company reaffirmed medium-term guidance of average mid-single digit organic revenue growth, underlying operating margin of at least 9 percent and average underlying operating cash conversion of at least 80 percent.
David Lockwood, Chief Executive Officer, said, "We remain on track to deliver our medium-term guidance. With our core capabilities aligned to our customers' evolving priorities, we are building a high-quality pipeline of long-term growth opportunities."
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