The confirmed Iran linked cyberattack on a UK gas fired plant has turned industrial cyber security from a niche concern into front page risk. As UK authorities push utilities to upgrade old control systems, attention is shifting to companies tied to operational technology and critical infrastructure. This article walks through three stocks that are closely exposed to these headlines and why they may matter for your portfolio watchlist today.

The stocks covered in the article below are just a starting sample, and the full screen surfaced 22 more companies with equally compelling operational technology and industrial cyber security narratives that are not covered here. To identify your own highest conviction ideas in this space, head straight into the Operational Technology & Industrial Cyber Security screener.

Babcock International Group (LSE:BAB)

Overview: Babcock International Group is a UK based aerospace, defense and security contractor that designs, builds and supports complex systems for naval fleets, nuclear facilities, land vehicles and aviation services, which often sit inside critical national infrastructure. Its role integrating and maintaining secure, mission critical platforms gives it a clear link to the operational resilience and industrial systems focus of this OT and critical infrastructure screener.

Operations: Babcock generates most of its revenue from Nuclear at £2.1b and Marine at about £1.6b, with Land contributing £1.1b and Aviation about £0.4b, and the United Kingdom accounting for £3.6b of its sales compared with £1.5b across international markets.

Market Cap: £5.4b

Babcock International Group gives you exposure to defense, nuclear and critical infrastructure projects at a time when the UK is publicly reassessing the resilience of its energy and industrial systems after the confirmed cyberattack on a gas fired plant. The company has grown sales to £5.2b while still working to lift margins. Some analysts have noted the potential for higher earnings and future buybacks if execution on major contracts such as Type 31 frigates and nuclear projects continues to improve. The flip side is meaningful debt, lumpy order intake and recent earnings that dipped despite higher revenue, which can pressure cash flow if large programs move against it. For investors who want security focused integration rather than pure play cyber software, that mix of strengths and pressure points is a key part of the investment narrative.

Babcock International Group is already tied to high profile nuclear and defense contracts, yet the full investment story may hinge on how its contract execution really feeds through to cash and balance sheet strength. Get the Babcock International Group financial health report

Zscaler (ZS)

Overview: Zscaler is a cloud security company that runs a large, global platform to protect users, applications and data as traffic moves between the internet, private apps and public clouds. Its Zero Trust services such as Zscaler Internet Access and Zscaler Private Access are widely used by enterprises that need to control network access and segmentation, which can include connections into critical infrastructure and OT environments.

Operations: Zscaler generates essentially all of its US$3.2b in revenue from sales of subscription services to its cloud platform and related support, with sales spread across the United States, Europe, Middle East and Africa, Asia Pacific and other regions.

Market Cap: US$29.4b

For investors watching the fallout from the confirmed cyberattack on a UK gas fired plant, Zscaler offers an example of rising focus on Zero Trust and secure remote access without relying on pure OT security tools. The company is heavily geared to recurring subscription revenue, has a broad enterprise customer base and is pushing into AI driven security and Zero Trust Branch, which could matter as utilities and manufacturers tighten access to industrial systems. At the same time, Zscaler is still working towards consistent profitability, faces strong competition and has seen insider selling, so investors need to weigh growth and thematic appeal against execution risk and valuation. The full story on Zscaler’s financial strength, growth expectations and risk profile sits in the detailed analyst work behind its narrative and forecasts.

Growth-heavy Zscaler is pushing hard on Zero Trust and AI security, yet the market debate on its future earnings power is only half the story. Start with the analyst forecasts for Zscaler to see what might change that narrative next.

ESCO Technologies (ESE)

Overview: ESCO Technologies is a US based engineering group that supplies mission critical components and systems to aerospace, defense, navy and utility customers, including filtration and fluid control hardware, submarine signature and power management solutions, and diagnostic and decision support tools for power grids and renewable assets. That mix ties it into the Operational Technology & Industrial Cyber Security theme through hardened equipment and grid monitoring products that sit close to critical infrastructure.

Operations: ESCO Technologies generates most of its revenue from Aerospace & Defense at about US$632.7 million, with the Utility Solutions Group contributing around US$391.2 million and the Test segment about US$266.8 million, while reported geographic data indicates the United States accounts for roughly US$837.8 million of sales.

Market Cap: US$7.4b

For investors following the confirmed cyberattack on a UK gas fired plant, ESCO Technologies offers a different angle on infrastructure resilience through its mix of utility testing solutions and defense focused hardware rather than pure cyber software. The company combines a large reported backlog around US$1.54b with exposure to long term themes like grid modernization, electrification and submarine programs. This has supported repeated guidance raises. At the same time, a premium P/E, reliance on external funding and modest forecast ROE mean expectations are high and execution on acquisitions such as Megger and integration of utility and test platforms really matters. For those seeking exposure to critical infrastructure diagnostics and mission critical defense components in one package, ESCO Technologies may warrant a closer look.

ESCO Technologies has a reported US$1.54b backlog and exposure to grid modernization, electrification and submarine programs. Yet the real story is what that pipeline could mean for future returns. Get the analyst forecasts for ESCO Technologies before one key assumption in those forecasts is tested.

Seeking Alternatives Before The Crowd Moves

Fresh themes are breaking out, momentum is shifting and some ideas stay under the radar for now. Use these curated stock lists before the edge drops away and to get in early.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.