Babcock International Group, the FTSE 100 defence and nuclear services company, said trading over the first five months of its financial year had run in line with expectations, leaving its full-year outlook and medium-term guidance unchanged.
The update, issued ahead of Wednesday's annual general meeting, covered the opening stretch of the year to March 2027 and pointed to robust demand across the group's core defence markets.
Nuclear and Aviation were singled out as the standout performers.
The company added that it remained confident of achieving its medium-term guidance.
Chief executive Harry Holt said the group had started the year with good momentum and operational delivery, supported by strong demand across its defence and nuclear markets.
His comments marked the first trading statement since he took the top job on 31 July, completing a handover from David Lockwood, who will stay on to support the transition until his retirement in January 2027.
Holt said his focus had been on disciplined execution, customer engagement and sharpening the group's priorities for long-term growth.
The backdrop is a sharp rise in UK military spending, with the government's Defence Investment Plan, published in June, setting out £298 billion of expenditure over the next four years.
Babcock also pointed to Royal Oak, a £26 billion, decade-long programme to modernise naval infrastructure, including £7 billion for the Devonport naval base and dockyard and £15 billion to regenerate the Clyde submarine base.
As the sole through-life support provider for the UK's nuclear submarine fleet and the incumbent operator of both sites, the company said it was well placed to benefit.
New work during the period included a CAD$1.2 billion (£600 million) six-year extension to support the Royal Canadian Navy's Victoria Class submarines, plus selection as preferred bidder for an eight-year French Air Force combat training contract.
On the balance sheet, Babcock issued a £250 million six-year sterling bond and launched a further £200 million share buyback in July, which it expects to complete by the end of the financial year.
