Babcock secures £1 billion contract extension with UK Ministry of Defence

LONDON: Defence company Babcock International Group has clinched a five-year contract extension worth approximately £1 billion with the UK Ministry of Defence (MOD), reinforcing its strategic partnership with the British Army.

The contract, a continuation of the Defence Support Group (DSG) Service Provision and Transformation Contract (SPTC), is set to enhance the Army’s operational readiness by providing comprehensive support capabilities both domestically and globally. Over the next five years, Babcock will focus on improving equipment readiness, asset management, and supply chain efficiency to ensure critical army equipment remains available and reliable.

“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,” said David Lockwood, Babcock’s Chief Executive Officer. “Our expertise and application of technology are key to supporting the Army’s preparedness in a time of growing global instability.”

As part of the agreement, Babcock will also accelerate its transformation programme, laying a foundation for the Army’s modernisation efforts. The MOD has committed to investing in facilities and equipment, while Babcock will invest in its workforce, which includes 1,600 skilled personnel across over 20 UK sites. The company plans to expand skills development initiatives, including its robust apprenticeship scheme.

Defence Secretary John Healey hailed the partnership, emphasizing the role of defence in bolstering the economy. “This substantial investment demonstrates how defence acts as an engine for growth, supporting businesses and sustaining thousands of well-paid jobs across Britain,” he said. “National security is the cornerstone of a successful economy, and we are ensuring our Armed Forces remain equipped for evolving global threats.”

The contract extension aligns with the Defence Industrial Strategy, delivering significant value to the MOD while promoting economic growth and innovation across the UK.