- Babcock share price gained over 10% on Wednesday and has extended the upside as investors buy into strong fundamentals including NATO plans.
Babcock International Group (LSE: BAB) share price has extended its gains, driving on the upbeat sentiment created by its earnings report. The company released its Q4FY 2025 results on Wednesday, sending the stock to 52-week highs of 1,777p and closing the day’s session at +10.75%. The stock was up by 1.4% as of this writing, having corrected downwards to trade at 1,160p.
The company reported a 10% growth in revenue to £4.83 billion for the quarter ending March 2025, with its operating profit growing by 53% to £362.9 million. In addition, its profit margin went up from 5.4% a year ago to 7.5%. The impressive results are seen as proof that its strategic operations shakeup is paying off, with notable drops in cost overruns and underperforming contracts. Furthermore, Babcock announced a £200 million share buyback programming, signifying confidence in its future growth outlook.
Babcock share price upside momentum is also supported by NATO member’s commitment to increase their defence expenditure from 2% to 5% of GDP. That translates to increased revenues for defence contractors, and Babcock’s current stature as the second-largest customer to the UK’s Ministry of Defence likely gives it an edge. It also brought down its debt burden in the last quarter, reducing it by £63 million to £373.3 million.
The company sits in a healthy position, with its EPS having grown by an average of 15% per year for the last three years. Meanwhile, Babcock share price is up by 127% year-to-date, pointing to an underlying strong bullish traction.
Babcock Share Price Prediction
Babcock share price pivots at 1,140p and the upside will likely prevail if action stays above that level. The stock will likely meet initial resistance at 1,177p. A stronger momentum will break above that level and test the next barrier at 1,200p
Alternatively, action below 1,140p will favour the sellers to be in control. That will likely see primary support established at 1,110p. The upside narrative will be invalid if the price breaks below that level. An extended control by the sellers could extend the decline to test 1,080p.
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