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Babcock secures £1.6 billion MoD contract extension to support British Army readiness

26th March 2025 - 12:39 GMT | by Lucy Powell in London

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The Challenger 2 MBT is currently operated by the British Army. (Photo: Crown Copyright)

The five-year contract extension will be applied to the existing 10-year DSG Service Provision and Transformation Contract.

Babcock International has been awarded a £1.6 billion (US$ 2.06 billion) five-year contract extension by the UK Ministry of Defence (MoD) to support and maintain British Army equipment.

According to the MoD, the contract extension will cover assets including the Challenger 2 MBT, 105mm artillery guns and Trojan armoured vehicles. Babcock will also invest in its workforce of 1,600 people across its 20 UK-based sites. A total of £1 billion of the contract will go to Babcock, with the remaining £600 million given to sub-contractors.

Major General Lizzie Faithfull-Davies CBE, director – land environment at the UK MoD, said: “With this

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Lucy Powell

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Lucy Powell


Lucy Powell is Shephard’s Air Reporter. She has spent the last two years reporting …

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