Babcock awarded five-year extension to its British Army strategic support contract

Babcock International has secured a five-year contract extension as a strategic support partner to the UK Ministry of Defence (MoD), the company announced on 26 March 2025.

The total contract, worth GBP 1.6 billion (EUR 1.91 billion), includes around GBP 1 billion of revenue that will be taken into Babcock’s contract backlog and around GBP 600 million “delivered as agent, not recognised through revenue”, the company confirmed.

The strategic support contract extension further underpins Babcock’s long-term relationship with the British Army. Specialising in building new vehicles, supporting vehicle fleets and training British soldiers, Babcock says it plays a crucial role in ensuring operational readiness for the British Army.

The transformation of the original Defence Support Group (DSG) contract over the first 10 years will be further accelerated over the extension period, directly supporting the delivery of the UK’s Defence Industrial Strategy.

The extension to the existing DSG Service Provision and Transformation Contract (SPTC) will deliver a comprehensive range of support capabilities for the British Army. Through the course of the extension Babcock “will deliver improved readiness, regeneration and asset management services underpinned by extensive engineering and supply chain expertise”, the company stated, adding that this “will maximise the availability of critical army equipment whilst delivering increased value for money and better outcomes for both partners”.

A comprehensive transformation programme will deliver a step change in support outputs, setting the foundation for the army modernisation programme in the coming decades. In collaboration with the MoD, which has committed to investment in facilities and equipment, Babcock will continue to invest in its workforce of 1,600 skilled personnel across more than 20 sites throughout the UK, including skills development and a robust apprentice scheme dedicated to nurturing talent and building expertise.

“In a period of increased global instability, more is being expected of our armed forces,” noted Babcock CEO David Lockwood in a company press release. “This contract extension ensures that Babcock continues to provide the British Army with the tools to do its job, when and wherever they are needed. Our know-how, application of technology and extensive experience in the land domain help ensure that the British Army is ready to fight and win wars.”

UK Defence Secretary John Healey was quoted by Babcock as saying, “Tanks, armoured vehicles and kit are the backbone of the British Army. We are taking action to ensure the outstanding servicemen and -women of our armed forces are properly equipped and ready to respond to ever-changing global threats.

“Supported by the largest sustained increase in defence spending since the Cold War, this substantial investment with Babcock demonstrates how defence is an engine for growth, supporting businesses of all sizes and sustaining more than 1,600 good, well-paid jobs across Britain.”