Babcock International PLC (LSE:BAB) chief executive David Lockwood will step down later this year after five years in the role.
The defence contractor said that Harry Holt, chief of its nuclear division, will become deputy CEO in June and replace Lockwood when he retires towards the end of the year.
Meanwhile, the FTSE 100 group has kept its sights trained on its full-year guidance after a strong third quarter, with organic revenue growth described as "good" and progress on operating margins towards meeting the full-year margin target of 8%.
Strong performances in its Nuclear, Aviation and Marine divisions offset ongoing weakness in the Land sector.
The company highlighted several operational milestones, including progress on the UK Type 31 frigate programme, further licences under Indonesia’s £4 billion Maritime Partnership Programme, and the ramp-up of UK Land and submarine support contracts. A £200 million share buyback remains on track, with £90 million returned so far.
Chair Dame Ruth Cairnie said Lockwood "has been an exceptional chief executive... transforming Babcock into a leading global defence business.”
Lockwood said Holt was “the ideal person to drive Babcock forward,” having presided over the largest sector in Babcock's global business.
Holt has been part of the senior management team since November 2023, before which he spent 10 year at Rolls-Royce, including seven on the executive team, in roles including president of its nuclear division and latterly as chief people officer to lead group-wide transformation and restructuring under previous boss Warren East.
Previously, he had a distinguished career as an officer in the British Army, before joining Rolls as a government relations officer.