Regency View:

TAKE PROFITS Babcock International (BAB)

Close Babcock International (BAB) at market (806.5p)

After a strong run, we’ve taken the decision to lock in profits on Babcock International. The shares have more than doubled since we first flagged the opportunity, helped along by a clear macro tailwind: Europe’s growing commitment to defence spending. As one of the key contractors in naval support and nuclear infrastructure, Babcock was always well-positioned to benefit from this shift in policy—and the market has now priced in much of that upside.

We still like the defence theme, but with BAE Systems now added to our list of live positions, there’s less need to keep holding Babcock at these levels. BAE offers broader exposure across air, land and sea, with stronger cash flows and a growing order book. Taking profits here is less about a negative view on Babcock, and more about portfolio balance—recycling capital into new opportunities while holding on to the underlying trend.

Profit (ex dividends) = 110%

BAB Daily Candle Chart