London, January 10, 2026, 08:50 GMT — Market closed
- Babcock shares ended Friday up 1.3% at 1,469 pence
- Defence names stayed in focus after fresh U.S. budget talk lifted the sector
- Next catalyst: Babcock’s Q3 trading update on Jan. 26
Babcock International Group Plc (BAB.L) shares closed 1.3% higher at 1,469 pence on Friday, extending a run of daily gains into the weekend. Turnover was about 6.5 million shares, according to exchange data. (MarketScreener)
The bid under the stock has come with a broader push into defence names after U.S. President Donald Trump said the 2027 U.S. military budget should be $1.5 trillion, well above the $901 billion approved for this year. “Geopolitics is the inescapable story of 2026 thus far,” Neil Wilson, UK investor strategist at Saxo Bank, said, while RBC Capital Markets analysts led by Ken Herbert flagged “significant uncertainty” around where the final budget lands. (Reuters)
Babcock has its own headline in the mix. The company said on Wednesday it signed a memorandum of understanding — a non-binding cooperation agreement — with Frankenburg Technologies to explore a maritime counter-drone air-defence system, including a containerised launcher platform for low-cost missiles aimed at one-way attack drones. Chief executive David Lockwood said “defence has entered a new era” with the rapid rise of drone warfare, while Frankenburg CEO Kusti Salm said the goal is to “bring affordability and scale to modern air defence.” (Babcock International Group)
With the market shut until Monday, investors are now looking through the week to Babcock’s next scheduled milestone: a Q3 trading update on Jan. 26. Babcock describes itself as a FTSE 100 defence company providing through-life technical and engineering support and also making specialist equipment; the update is expected to give the next read on demand, delivery and cash generation. (Babcock International Group)
Technically, the stock has been trading near the top of its 52-week range, with Friday’s move leaving it close to recent highs. It has fluctuated in a recent day range of roughly 1,441 pence to 1,473 pence, with a 52-week span shown at about 479 pence to 1,476 pence. (Investing)
But the set-up cuts both ways. Defence stocks have moved fast on politics and headlines; if budget ambitions get trimmed, or if the sector cools on profit-taking, momentum trades can unwind quickly. And MoUs don’t guarantee revenue — the market will still want timelines, customers and funded orders.
When trading resumes on Monday, the next clear marker for Babcock is the Jan. 26 Q3 trading update, with investors watching for any shift in trading conditions and how management frames demand into the next fiscal year.
