Babcock International has secured a five-year contract extension with the UK Ministry of Defence (MOD), valued at approximately £1 billion. The contract extends the existing DSG (Defence Support Group) Service Provision and Transformation Contract, reinforcing Babcock’s strategic role in supporting the British Army’s vehicle and equipment fleet.
Under the agreement, Babcock will deliver a broad range of support capabilities focused on readiness, maintenance, and asset management. These services aim to ensure the availability and operational performance of key platforms such as tanks, armored vehicles, and other land systems.
The extension also marks a step change in defense support strategy. Babcock and the MOD plan to accelerate a comprehensive transformation programme that will modernize logistics and engineering practices across the Army’s supply chain. Investment from both the MOD and Babcock includes upgraded facilities and workforce development.
Over 1,600 skilled workers across more than 20 UK sites will be involved, with Babcock highlighting its commitment to apprenticeships and talent development as part of its long-term contribution to UK defense capability.
David Lockwood, Babcock’s CEO, emphasized the growing demands on the armed forces amid global instability, stating that this extension ensures continued delivery of critical tools and services. UK Defence Secretary John Healey called the investment part of the government’s strategy to reinforce national security while supporting skilled jobs across Britain.
The total value of the contract is around £1.6 billion, though only £1.0 billion will be recognized in Babcock’s revenue backlog.