Babcock CEO succession announced as defence group builds on turnaround
January 23, 2026
Babcock International Group has announced that Group Chief Executive David Lockwood will retire by the end of calendar 2026, with current Nuclear sector CEO Harry Holt appointed as his successor following an extensive internal and external search process.
Holt will become Deputy CEO and join the Board in June, ahead of a phased handover later in the year.
Lockwood, who was appointed CEO in September 2020, is credited with leading a significant turnaround at Babcock, refocusing the business on defence engineering, strengthening operational delivery and financial performance, and returning the group to the FTSE 100.
Under his leadership, the company’s share price has risen sharply, and its strategic position in key markets has improved substantially.
Strong trading performance underpins Babcock CEO transition
The leadership announcement comes alongside a positive trading update for the nine months to 31 December 2025. Babcock reported solid organic revenue growth over the period, alongside continued improvement in underlying margins.
The company said that nearly all forecast revenue for FY26 is already under contract, underlining the visibility of its near-term earnings. Management also reiterated confidence in meeting its full-year margin target of around 8 per cent.
Analysts have pointed to recent strategic contract wins, particularly across naval and submarine programmes, as further strengthening Babcock’s order pipeline and supporting confidence in the group’s medium-term trajectory.
Strategic defence and naval contract wins strengthen Babcock pipeline
The CEO transition comes amid a number of other developments that highlight Babcock’s expanding role in defence and maritime support:
- Indonesia maritime partnership – Babcock has signed an initial framework agreement under Indonesia’s Maritime Partnership Programme, part of a broader £4 billion naval modernisation effort that includes expanded Arrowhead 140 frigate exports and associated infrastructure work.
- Contract backlog growth – The company reported a contract backlog of nearly £9.9 billion for the first half of FY26, reflecting steady demand across nuclear, marine and defence services.
- Armour and autonomous maritime systems – Initiatives such as the ARMOR Force, designed to integrate autonomous maritime platforms with the Royal Navy’s fleet, demonstrate Babcock’s engagement in future-focused defence technology.
- Simulation and sustainment partnerships – A memorandum of understanding with UK simulation specialist Skyral aims to enhance modelling and sustainment support for British Army equipment, signalling an expansion of Babcock’s services footprint beyond traditional engineering roles.
These developments underline the breadth of Babcock’s portfolio across defence sustainment, shipbuilding exports, nuclear support and emerging technology layers.
ADS Group welcomes Babcock leadership transition
Kevin Craven, CEO of ADS Group, paid tribute to Lockwood’s contribution to both Babcock and the wider UK defence community:
“David is a great colleague and a trusted friend to our sectors, and his leadership at Babcock, during what has been a period of great change for the organisation, has earned him very well-deserved respect,” Craven said.
“While this is a well-earned retirement from Babcock, I have no doubt that David’s insight and experience will continue to guide our community for many years to come. I look forward to working closely with him as he continues in his term as ADS President, championing the contribution our sectors make to the UK and to our international partners.”
Leadership continuity as Babcock enters next phase of growth
Holt’s appointment signals continuity of strategic execution at Babcock, with his leadership of the company’s largest sector, Nuclear, seen as a key credential for steering the group through its next growth phase.
Prior to joining Babcock, he held senior executive roles at Rolls-Royce and served as a British Army officer, bringing a blend of technical, operational and leadership experience to the top job.
Lockwood said he was proud to leave Babcock well-positioned to capitalise on the defence and security market’s structural growth.
“I am delighted that the Board has chosen Harry to succeed me,” Lockwood said. “Harry has been a key member of my senior management team. His skills, expertise, and deep knowledge of the business make him the ideal person to drive Babcock forward and I look forward to supporting this transition.”
Holt said he was deeply honoured to be given the opportunity to lead Babcock through its next chapter, praising Lockwood’s leadership, which he says has given the company an excellent footing for future growth.
“I look forward to working with the executive team, as well as colleagues throughout the business, to continue the disciplined delivery of our strategy,” said Holt. “In these uncertain times, our collective purpose to create a safe and secure world has never been more important.”
Featured image: Babcock
