Babcock announces CEO retirement and succession

Image courtesy Babcock
 
David Lockwood (above) 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."

David Lockwood is also the current President of ADS, the UK trade association for aerospace, defence, security and space. 

Kevin Craven, ADS CEO said: "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. 
 
"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."
 
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."