Finance
UK's Babcock secures $1.3 billion defence contract extension
Published by Global Banking & Finance Review®
Posted on March 26, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 26, 2025
1 min readLast updated: January 24, 2026
Babcock secures a five-year $1.3 billion contract from the UK Ministry of Defence to maintain British Army equipment, following a commitment to increase defence spending.
(Reuters) -Defence group Babcock on Wednesday said it had secured a five-year contract worth around 1 billion pounds ($1.29 billion) from the UK Ministry of Defence to maintain tanks, armoured vehicles and other equipment for the British Army.
The contract extension, valued at 1.6 billion pounds in total, including 600 million pounds for sub-contractors, will cover equipment such as Challenger 2 tanks, 105mm artillery guns and Trojan armoured vehicles, the government said.
It follows Prime Minister Keir Starmer's commitment last month to increase defence spending to 2.5% of GDP, the biggest increase in the budget since the end of the Cold War.
Finance Minister Rachel Reeves will announce an extra 2.2 billion pounds for defence, including advanced technologies for modern warfare, in her budget update on Wednesday.
Shares in Babcock, which have risen 45% since the start of 2025, opened up 1.5%.
($1 = 0.7740 pounds)
(Reporting by Yamini Kalia in Bengaluru and Paul Sandle in London; Editing by Mrigank Dhaniwala and Sarah Young)
The article discusses Babcock securing a $1.3 billion contract extension from the UK Ministry of Defence to maintain British Army equipment.
The contract covers maintenance of Challenger 2 tanks, 105mm artillery guns, and Trojan armoured vehicles.
Shares in Babcock have risen 1.5% following the announcement of the contract extension.
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