Babcock International: Type 31 Takes More Charges

2026-05-28 09:28:31 ET

Babcock International Group PLC ( BCKIY )( BCKIF ) provided some FY 2026 disclosure on a preliminary basis. There are further charges on the Type 31 project in marine, currently on the first ship in the prototyping phase. The poor quote on this project and the execution issues were mentioned in our previous coverage . The reserve for the project is getting hit further, already heavily penalized as the project gets debugged in a less conceptual and more fact-oriented phase. Additionally, some of the planned contract awards touted in November haven't materialized. While Indonesia is incoming, hopefully in 2027, the Swedish subcontract went a different way despite being counted on by markets, explaining the volatility some weeks ago on the announcement that it went to the French. We understand they are still waiting on a possible contract from Denmark....

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