Babcock International has confirmed that chief executive David Lockwood will retire by the end of the year, bringing to a close a five-year turnaround that has reshaped the defence engineering group and driven a sharp recovery in its financial performance.
Lockwood, who joined the company in September 2020, will be succeeded by Harry Holt, currently chief executive of Babcock’s Nuclear sector, following what the board described as an extensive internal and external succession process.
The announcement marks the end of a period in which Babcock was restructured into a more focused defence business, after earlier operational and accounting challenges. During Lockwood’s tenure, the company rebuilt its delivery record, narrowed its portfolio and benefited from rising defence spending across the UK and NATO allies. Babcock returned to the FTSE 100 in March after a seven-year absence, with its share price increasing almost sixfold over the past five years.
The group said Holt’s appointment as an internal successor would provide continuity as it pursues medium-term growth targets. As head of the Nuclear sector, Babcock’s largest business area, Holt has overseen improved programme performance and significant revenue growth, spanning both defence and civil nuclear work.
Before joining Babcock, Holt spent more than a decade at Rolls-Royce, including seven years on its executive team in senior roles such as president of the company’s Nuclear division. He previously served as an officer in the British Army.
Dame Ruth Cairnie, chair of Babcock, said Lockwood leaves the company in a strong position, noting that its capabilities have become increasingly relevant amid heightened global security concerns. She said the board’s succession planning had identified Holt as the right choice to lead the next phase of the company’s strategy.
“David has been an exceptional Chief Executive. Having delivered a strategic and financial transformation and set the business on a pathway of sustainable profitable growth, he leaves Babcock in a very strong position for the future, where the Group’s unique capabilities have never been more relevant.
On behalf of the Board, I would like to thank David for his excellent leadership that has transformed Babcock into a leading global defence business, creating significant shareholder value, as well as returning Babcock to the FTSE100. The Board has been undertaking a thorough succession planning process, which placed us in a strong position to identify Harry as the outstanding candidate to lead Babcock through its next chapter, given his background, skills and experience.”
Lockwood said it had been a privilege to lead the business through a period shaped by the pandemic, geopolitical instability and renewed focus on defence. He added that Babcock is now “well-positioned to deliver on the opportunities ahead in this new era in international defence and security.”
Holt said he was “deeply honoured” to be appointed and paid tribute to Lockwood’s leadership, which he said had placed the company on a strong footing for future growth. He added that, in an uncertain international environment, Babcock’s role in supporting defence and security had taken on greater significance.
Under the transition plan, Holt will take up a newly created role of deputy chief executive and join the board in June, before formally assuming the chief executive position later in the year. Lockwood will step down from the board at that point but is expected to support the business during the handover period.
Babcock seems to be rapidly becoming our best defence company. Great turnaround.