Babcock Chief Executive David Lockwood Announces Retirement Following Remarkable Turnaround
The chief executive of leading defence and aerospace company Babcock International is set to step down from his role at the conclusion of this year, following a transformative five-year tenure that witnessed an extraordinary sixfold increase in the firm's share price. David Lockwood, who assumed the position of chief executive in September 2020, will retire from the company's board at the end of December, according to an official announcement made by the FTSE 100-listed group on Friday.
A Distinguished Career in Industry and Leadership
Lockwood, who has expressed his intention to retire following his departure, brings a wealth of executive experience from the defence and engineering sectors. Prior to joining Babcock, he served as the chief executive of British aerospace specialist Cobham, which was acquired by US private equity firm Advent International in a landmark £4 billion deal during 2020. His career trajectory also includes leadership of London-based electronics business Laird, which was subsequently purchased by the same private equity house.
In recognition of his significant contributions to industry, particularly within Scotland, Lockwood was honoured with an OBE for services to the sector back in 2011. His strategic vision and operational expertise have been widely credited with steering Babcock through a period of substantial growth and enhanced market positioning.
Succession Planning and New Leadership Appointment
The defence contractor has confirmed that Lockwood will be succeeded by Harry Holt, who currently serves as chief executive of Babcock's Nuclear sector – the organisation's largest and most strategically important division. Holt brings extensive experience from his previous role at Rolls-Royce, where he spent over a decade, including seven years on their executive leadership team in various senior capacities. His positions included president of the nuclear division and, most recently, chief people officer, complemented by his earlier service as an officer in the British Army.
Incoming chief executive Harry Holt commented on the transition, stating: "I would like to pay tribute to David's inspirational leadership that has put Babcock on an excellent footing from which we can continue to grow and am looking forward to working with him through the transition period."
Strong Financial Performance and Market Position
The London-headquartered company reported that it has experienced a continuation of the strong performance previously disclosed during the fourth quarter of 2025, with the vast majority of its anticipated annual revenue now secured under contract. This positive trajectory comes amidst renewed commitments across European nations to bolster defence expenditure, which has contributed to significant share price appreciation for defence contractors including Babcock.
Particularly robust demand has been noted within Babcock's nuclear division, driven by new-build clean energy initiatives and ongoing submarine maintenance operations. The company confirmed it remains on track to achieve its full-year margin objective of 8 per cent, reflecting disciplined financial management and operational efficiency.
Strategic Projects and Global Operations
Babcock continues to play a crucial role in significant international defence programmes, including participation in France's "Mentor 2" initiative to upgrade air force pilot training capabilities. Additionally, the company supports construction activities for the US Virginia Class submarine fleet, underscoring its position as a key partner in global defence infrastructure.
Despite a slight share price adjustment of 2.9 per cent to 1422p during Friday morning trading, Babcock's stock has demonstrated remarkable resilience with an 11.7 per cent increase year-to-date. The company emphasised in its statement: "Babcock's business momentum and operational performance have continued through the period with consistent delivery of our unique and critical capabilities for our customers around the world."
This leadership transition marks a significant moment for one of Britain's most important defence contractors as it builds upon the substantial growth achieved under Lockwood's stewardship and prepares for its next chapter under Holt's guidance.
