(RTTNews) - Babcock International Group (BAB.L), a UK aerospace firm, posted reduced profit for fiscal 2026 on Monday despite higher revenues. The contract backlog decreased, although the company lifted its annual dividend and kept its guidance for fiscal 2027 plus the medium term intact.

On the London Stock Exchange the shares fell roughly 4.11 percent to trade at 1,003.00 pence.

Full-year profit before tax declined to 283.7 million pounds from 329.1 million pounds previously, while earnings per share slipped to 41.3 pence from 48.0 pence.

Underlying profit before tax reached 267.2 million pounds versus 339.4 million pounds a year earlier, and underlying basic earnings per share stood at 39.6 pence compared with 50.3 pence.

Underlying earnings per share excluding the Type 31 charge rose to 60.5 pence from 50.3 pence last year.

Revenue climbed to 5.18 billion pounds from 4.83 billion pounds, reflecting 8 percent organic growth fueled by strong Nuclear and Aviation results.

Contract backlog eased to 9.8 billion pounds from 10.4 billion pounds.

The firm declared a final dividend of 5.0 pence per share, up from 4.5 pence, payable September 25 to holders of record August 14. Subject to shareholder approval at the September 16 AGM, the full-year payout would total 7.5 pence, a 15 percent increase over the prior 6.5 pence.

Babcock expects fiscal 2027 to show further solid progress, backed by revenue visibility with about 70 percent of sales already under contract as of April 1, matching last year's level.

The company reiterated its medium-term targets of average mid-single-digit organic revenue growth, underlying operating margin of at least 9 percent, and average underlying operating cash conversion of at least 80 percent.

Chief Executive David Lockwood noted the firm stays on course for its medium-term goals and is developing a strong pipeline of long-term opportunities aligned with customer needs.