REG - Babcock Intnl Group - Babcock announces CEO retirement and succession

Babcock InternationalAnnouncement

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RNS Number : 0474Q  Babcock International Group PLC  23 January 2026

23 January 2026

 

Babcock International Group PLC announces CEO retirement and succession

 

Babcock International Group PLC (Babcock or the Group), the defence company,
today announces the decision of David Lockwood, Group Chief Executive, to
retire by the end of this calendar year. The Board has chosen Harry Holt, the
current CEO of Babcock's Nuclear sector, as his successor.

 

David joined Babcock as Group Chief Executive in September 2020 and during
this tenure has led the business through a highly successful strategic and
financial transformation, building a strong, focused and high-performance
defence engineering business delivering growth, margin expansion, and cash
generation, alongside a comprehensive step-change in operating performance,
delivery track-record for customers, and portfolio alignment. David will leave
the Group with excellent momentum and an exciting opportunity set for future
growth. With a strengthened leadership team, David has driven a transformed
Babcock culture, one that is committed to expertise, encouragement, and
excellence.

 

Following an extensive internal and external search process, the Board has
selected Harry to succeed David as Group Chief Executive. The appointment of a
strong internal candidate ensures Babcock's ability to continue implementing
the strategy which has been fundamental to the business growth and success.

 

As CEO of Babcock's Nuclear sector, the largest sector in Babcock's global
business, Harry has been an integral part of David's senior management team
since November 2023, successfully helping to deliver the Group's
transformation and growth programme. Under his leadership, the sector has
improved performance on its many critical programmes and has grown revenue by
c54%, between FY23 and FY25, achieving margins reaching 9%, with both the
defence and civil businesses within the Nuclear sector growing significantly
and well-set for exciting future growth.

 

Prior to joining Babcock, Harry spent seven years on the Executive Team of
Rolls Royce plc in a number of senior roles, including President of its
Nuclear Division and latterly as Chief People Officer, leading a group-wide
transformation and restructuring. His industrial career has also included a
range of senior appointments across multiple organisations in the Aerospace,
Defence, Security and Nuclear sectors. Before joining Rolls-Royce, Harry had a
long and distinguished career as an officer in the British Army.

 

Harry's experience in leading Babcock's defence and civil nuclear operations,
allied to his strong existing relationships with the Group's key customers and
deep working knowledge of the wider defence sector, means that he is
exceptionally well-qualified to lead Babcock through the next stage of its
strategy as the business progresses to meet its medium-term targets and to
take advantage of its significant long-term opportunity set.

 

Harry will assume the newly created role of Deputy CEO and will join the Board
in June.  Following this, a comprehensive and seamless transition will be
completed before Harry succeeds David as Group Chief Executive and David steps
down from the Board. Thereafter, David will continue to support the business.

 

Dame Ruth Cairnie DBE, Babcock Chair, said:

 

"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."

 

David Lockwood, Group Chief Executive, said:

 

"It has been my privilege to lead Babcock, through a period that has seen the
COVID pandemic, international geopolitical unrest and an increased focus on
global security.  Babcock is a unique company, it has a team of great people,
with a range of important skills, alongside some of the most critical
specialist infrastructure needed today. I am proud to leave Babcock
well-positioned to deliver on the opportunities ahead in this new era in
international defence and security.

 

"I am delighted that the Board has chosen Harry to succeed me. 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."

 

Harry Holt, Deputy CEO, said:

 

"I am deeply honoured to have the opportunity to lead Babcock through its next
chapter. 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.

 

"With our great people and our financial strength, we have the means to
confidently address the exciting opportunities before us and to continue to
deliver for our customers, colleagues, and communities, while creating
long-term value for our shareholders. I look forward to working with the
executive team, as well as colleagues throughout the business to continue the
disciplined delivery of our strategy. In these uncertain times, our collective
purpose to create a safe and secure world has never been more important."

 

ENDS

 

For further information:

 

Andrew Gollan, Director of Investor Relations    +44 (0)7936 039004

Harry Cameron / Camilla Cunningham, Teneo     +44 (0)20 7353 4200

 

Remuneration arrangements

 

The Company will set out full details of Harry's remuneration as Group Chief
Executive in its 2026 Annual Report. His remuneration will be in line with the
Company's approved Directors' Remuneration Policy. As well as serving at
Rolls-Royce, Harry has worked at Go Ahead plc and Vertical Aerospace. There is
no other information required to be disclosed under UK Listing Rule 6.4.8R.

 

David will receive his salary, pension, and benefits in accordance with his
contract for 12 months starting on the date of this announcement. He will
remain eligible for his FY26 bonus and pro-rated FY27 bonus, which will be
subject to performance and deferral in the normal way. As he is retiring,
David is a good leaver for the purpose of all the Company's share schemes,
including the PSP. His awards under the PSP will vest on the normal vesting
dates subject to performance and pro-ration to the end of his time with the
Company.  All in-flight awards will be subject to the two-year holding period
after vesting. No payments fall to be made to David by way of compensation for
loss of office.

 

Details of David's remuneration and the extent to which any of it will fall
due for payment after he has retired from the Board will be disclosed as
required under section 430(2B) of the Companies Act 2006 in the Directors'
Remuneration Report which will form part of the Company's 2026 Annual Report
to be published later in the year. The required disclosures in relation to
former directors will be included in the Company's 2027 Annual Report after
David has stepped down from the Board.

 

Forward looking statements

Any forward-looking statements contained in this announcement are subject to
risks and uncertainties that may cause actual results to differ materially
from those projected.  Such factors include those described in the principal
risks section of the Company's 2025 Annual Report and Accounts. All
expectations, guidance, and outlooks regarding future performance should be
read together with the section "Risks and uncertainties" of the Company's HY26
results announcement.

 

This announcement contains inside information and the person responsible for
arranging the release of this announcement on behalf of the Company is Jack
Borrett, Company Secretary.

 

Babcock International Group PLC

33 Wigmore Street

London W1U 1QX

 

Registered in England & Wales 02342138

 

 

 

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