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Some of the biggest winners this year have been defence stocks. Babcock International and BAE Systems are leading the charge, up 130% and 65% respectively. But Chemring from the FTSE 250 has also rocketed 75% so far in 2025.
Another mid-cap stock doing well is Serco (LSE: SRP). Up 31% year to date, it’s now at an 11-year high!
Defence boost
Serco’s a government outsourcing specialist with fingers in many pies (transport, justice, immigration, hospitals, and more). But defence is the firm’s largest sector, now contributing around 40% of revenue. It does things like manage army bases, provide support for the Royal Navy, and run military training centres.
Yesterday (26 June), Serco released a stronger-than-expected update for the first six months of the year. Revenue is expected to tick up 2% year on year, while underlying operating profit will be at least £140m, with a…
