Our strategy
Our purpose, to create a safe and secure world, together, informs all that we do.
We provide a range of products and service solutions to enhance our customers’ defence capabilities and critical assets. Our business model is underpinned by a deep understanding of technology integration and engineering, infrastructure management and specialist training. We help our customers around the world to cost effectively improve the capability, reliability and availability of their most critical assets.
Following a multi-year turnaround focused on portfolio simplification, balance sheet strength, and operational discipline, Babcock has successfully shifted from stabilisation to high-value growth.
Our long-term strategy
To maintain and grow our position as a trusted, long-term partner to the UK and allied governments, delivering critical defence and nuclear capabilities, and strengthening national resilience.
Achieved through our strategic framework
Leverage technical capability
Solve complex customer challenges across defence and nuclear, underpinned by deep domain expertise and regulated capability
Delivery excellence
Execute with discipline – on safety, schedule and quality – to deepen and protect customer relationships
Operational performance efficiency
Drive productivity and efficiency to expand margins, improve cash generation and enhance competitiveness
And a strategic focus to…
Grow in Defence and Nuclear:
Strengthen and expand capabilities aligned to evolving requirements; position in emerging ecosystems
Expand our international business:
Scale in priority markets, build positions in strategic geographies and grow direct exports
Develop and grow product-led capability:
Drive product and integration and through-life support opportunities to deepen customer embed
Increase agility:
Leverage engineering and technology expertise to respond rapidly to changing defence and energy needs
Build strategic partnerships:
Partner with best-in-class primes and OEMs; strengthen our role as a reliable government delivery partner
Invest in our people:
Attract, retain and develop critical skills; maintain a high-performance, safe and inclusive culture
Be a responsible business:
Embed sustainability and responsible practices in all that we do
…to progress against our medium-term targets…
Average annual organic growth
Mid-single digit
Underlying operating margin
≥9%
Average underlying operating cash conversion
≥80%
…and deliver value for all our stakeholders
Customers
improved capability outcomes with high delivery confidence
Colleagues
a safer, more engaging place to work with strong development pathways
Shareholders
sustainable value creation
Suppliers
benefiting from collaborative relationships with those who share our values
Communities
providing positive benefits to the places where we live and work
Annual Report 2026
Read our Annual Report and Financial Statements 2026 and find out how we’re delivering long term value through our innovative capabilities, for customers and stakeholders now and into the future.
Read report