Babcock International Group reaffirmed its full-year operating margin target of 8%, citing strong organic revenue growth through the third quarter. The British defense contractor also announced CEO David Lockwood will retire, with a successor from its Nuclear division selected after an internal and external search.

The company's performance is now contracted for the fiscal year ending March 2026, with potential upside tied to its Indonesian Arrowhead deal. Growth was driven by the Nuclear division's clean energy projects and Aviation's operational ramp-up. Land operations also expanded, though Rail revenue dipped on lower activity.

Key developments include a partnership for Indonesia's £4 billion Maritime Partnership Programme and a Letter of Intent for two additional Arrowhead 140 licenses. Babcock also expanded its role in the Virginia Class submarine program under AUKUS and launched an autonomous maritime systems partnership. It has returned £90 million to shareholders via its buyback program.