Babcock keeps reporting great numbers: In 2025, its revenues grew 11% and earnings 17%. The company announced something that (unfortunately) you rarely see with European companies: a £250 million share buyback (about 5% of its shares). It is a much better company today than it was 15 or even 5 years ago. It’s another testament that people make a huge difference. The credit goes to two Davids: David Lockwood and David Mellors.

As we look at Babcock today, the stock is around £10, and our conservative 2029 earnings estimate is about £1 (we are projecting 8% revenue growth) with the stock worth £17-20. BAB, a virtual unknown in the US, was until recently a hated stock in the UK – a so-called “widow maker.” Anyone who bought it over a ten-year period until recently lost money on it. Most institutional and retail investors stayed away from it, and few analyzed it. This is how opportunity was created for us.

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