Babcock has secured a five-year contract from the UK Ministry of Defence to provide engineering services to the Royal Navy at air stations in the south west of England.
Work under this aviation and engineering support and aircraft services (AESAS) contract includes forward maintenance and aircraft engineering for Merlin, Sea King, Lynx and Wildcat helicopters.
In addition, Babcock will be responsible for general airfield engineering services and aircraft operations support.
Babcock CEO Peter Rogers said: "Babcock is committed to delivering the improved performance levels, enhanced operational capability and increased cost-effectiveness, which are so critical for our customer."
Under the AESAS contract, full service delivery is expected to be provided by January 2016. The process will involve transfer of a significant number of skilled staff to Babcock.
In addition, Babcock's s existing DSG contract has been expanded to transact with suppliers directly.
The additional responsibility was awarded to Babcock after the company reached a milestone in the original contract for maintenance, repair, overhaul and storage of a range of current military vehicles and light-weapons.
Both contracts are expected to generate additional annual revenues of £100m.
In June, Babcock completed a refit of the UK Royal Navy's ocean survey vessel, HMS Scott, under the HMS Scott through life support (TLS) contract.
The refurbishment programme added several upgrades and improvements to the vessel, including removal and replacement of its rudder horn, and a new sewage treatment plant.