London, January 6, 2026, 10:50 GMT — Regular session
- Babcock shares rise about 2.2% in London trade, close to a 52-week high
- Australasia unit wins $42 million extension to Australian Defence Force C‑CBRNE support contract
- Company discloses fresh share buybacks; investors eye Jan. 16 interim dividend payment
Shares of Babcock International Group (BAB.L) rose about 2.2% to 1,376.7 pence by 10:42 GMT, edging toward the day’s high around 1,379p. The defence and engineering contractor stayed in focus after it announced an Australian defence contract extension and disclosed further share buybacks.
Babcock has been riding a broader bid for UK defence names. The FTSE 100 closed above 10,000 for the first time on Monday and aerospace and defence stocks rose 3.8%, with Babcock and BAE Systems up more than 5% each, Reuters reported (source).
The latest catalyst came from overseas. Babcock Australasia said it had been awarded a $42 million extension to its Counter Chemical, Biological, Radiological, Nuclear and Explosive (C‑CBRNE) asset management contract — a programme that supports specialist equipment used by the Australian Defence Force.
The three-year continuation runs through to 2030 and covers 132 asset types and about 65,000 pieces of kit, the company said (statement). “This extension ensures Defence personnel continue to benefit from a trusted, long‑term industry partner,” Mission and Support Systems Managing Director Richard Udall said.
In London, a regulatory filing on Tuesday showed Babcock bought back 1,283 shares on Jan. 5 through Jefferies at a volume‑weighted average price of £13.3102. The company said it would hold the shares in treasury — stock kept by the company rather than cancelled (filing).
A separate notice a day earlier put another 38,567 shares repurchased on Jan. 2 through J.P. Morgan. Since July 24, 2025, the group has spent about £87.6 million buying back 7.87 million shares, the filings showed ( notice).
Investors have also been digesting a product update from Babcock’s LGE business, which said on Monday it lifted the guaranteed capacity of its ecoSMRT LNG reliquefaction system to 1.9 tonnes an hour. It also launched a next‑generation ecoSMRT 2.5 model, capable of guaranteeing up to 2.5 tonnes an hour, the unit said ( update).
Reliquefaction systems capture natural “boil‑off” gas from liquefied natural gas cargoes and turn it back into liquid, reducing waste and improving efficiency on LNG carriers. Babcock said the higher‑capacity model responds to demand driven by changing vessel requirements and environmental rules.
At the latest price, Babcock is valued at about £6.9 billion and trades on roughly 25 times trailing earnings, according to Google Finance data (quote). The shares have risen nearly 190% from their 52‑week low of 478.7p and are pressing the top of that range.
But the stock’s rapid climb leaves it sensitive to execution setbacks on complex defence and engineering work, where schedules and costs can shift quickly. Traders are watching whether the shares hold above Monday’s 1,347p close and push through the 1,400p round number.
