Babcock Chief Executive Announces Departure Following Remarkable Share Growth
David Lockwood, the chief executive of defence contractor Babcock International, has confirmed his intention to step down from the company's board at the close of this year. This announcement comes after a tenure that witnessed an extraordinary sixfold increase in the firm's share price, marking a period of significant transformation for the London-based business.
Leadership Transition at the Defence Giant
Lockwood, who assumed the role of chief executive in September 2020, plans to retire following his departure. His career includes previous leadership positions as chief executive of British aerospace firm Cobham, which was acquired by US private equity firm Advent for £4 billion in 2020, and at London-based electronics company Laird, also later acquired by Advent. In recognition of his contributions to industry in Scotland, Lockwood was awarded an OBE in 2011.
He will be succeeded by Harry Holt, the current chief executive of Babcock's Nuclear sector, which represents the largest segment within the organisation. Holt brings extensive experience from over a decade at Rolls-Royce, including seven years on their executive team in senior roles such as president of the nuclear division and chief people officer. His background also includes service as an officer in the British army.
"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," Holt stated regarding the handover.
Strong Performance Amid Defence Spending Increases
Babcock, a constituent of the FTSE 100 index, has experienced substantial stock growth driven by renewed commitments from European nations to boost defence expenditure. The company reported a continuation of strong performance from the final quarter of 2025, with the vast majority of its forecast revenue for the year now under contract.
The business highlighted particularly robust demand within its nuclear segment, fuelled by new-build clean energy initiatives and submarine support activities. Babcock expressed confidence in achieving its full-year margin target of 8 per cent. The company's involvement includes the French "Mentor 2" programme, which aims to modernise pilot training for the air force, and support for the US Virginia Class submarine construction project.
Despite the positive outlook, Babcock shares experienced a slight decline of 2.9 per cent to 1422p on Friday morning. However, the stock has maintained an overall increase of 11.7 per cent since the beginning of the year.
"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," the company affirmed in its statement.
