Babcock has secured a £1bn contract with the Australian Ministry of Defence to supply weapons handling systems for their submarines.
The programme will see 12 new Australian attack class submarines being built with new technology which is part of a £26bn programme.
Archie Bethel, chief executive of Babcock, said: “I am delighted that Babcock will play a significant role in Australia’s future submarine programme.
“The ability to transfer our unique Babcock intellectual property, know-how and expertise internationally across the group allows us to play an increasing role in ensuring the defence of countries around the world.”
The defence giant who are a FTSE 250 company are to build the new systems immediately which will start in Bristol then it will be given to Babcock’s Australian business.
Shares in Babcock were up 1.7% to 597p.