QinetiQ Group plc
16 July 2026
QinetiQ Group plc
Trading update
First quarter performance consistent with expectations; record backlog
and Defence Investment Plan support outlook
16 July 2026
QinetiQ Group plc ("QinetiQ"), the leading defence and technology services company focused on mission-led innovation, issues the following trading update for the first quarter period ending 30 June 2026 ahead of its Annual General Meeting (AGM) to be held later today.
Trading update
QinetiQ's trading in the period was consistent with full-year expectations. The Group continues to benefit from strong revenue visibility, underpinned by a record opening order backlog.
For FY27, QinetiQ continues to expect 3-5% revenue growth, 11.0-11.5% underlying operating profit1 margin, 8-10% EPS growth and >90% cash conversion. Over the FY27-29 period, the Group continues to target >£550m free cash flow.
Consistent with expectations, first-half revenue is expected to represent c.46% of full-year revenue, with an underlying operating profit1 margin of c. 11%.
Steve Wadey, Group Chief Executive Officer, said:
"The UK Defence Investment Plan and the NATO Summit reinforce the urgency to transform warfighting capabilities at pace and accelerate readiness. QinetiQ is focused on supporting customers in delivering against these priorities."
Key developments in the period
The UK Government published its Defence Investment Plan ("DIP") on 30 June, setting out funding priorities and creating a more certain backdrop for contracting activity over the next four years. The DIP places clear emphasis on areas where QinetiQ has direct exposure, including test and evaluation ("T&E"), mission systems integration, training and readiness, digital capability, autonomy, cyber and directed energy. These priorities align with QinetiQ's mission-critical, high-barrier capabilities in structurally important areas of defence.
QinetiQ continues to actively review all options for the US business, with the next update scheduled alongside interim results on 12 November 2026.
Farnborough International Airshow
QinetiQ will exhibit at the Farnborough International Airshow from 20-24 July, where it will feature its new laser source technology subsystem, supporting the Group's growth strategy in laser directed energy weapons. The Group will also host meetings with analysts and investors during the event. No material new financial or trading information will be disclosed.
Capital allocation
The Group continued to execute its share buyback programme, repurchasing £32.0m of shares in the period. The remaining c. £68m of the current programme will be completed by the end of FY27, after which the £200m programme announced on 21 May 2026 will commence.
AGM
QinetiQ's 2026 AGM will be held at 11am today at Ashurst LLP, London Fruit & Wool Exchange, 1 Duval Square, London E1 6PW.
About QinetiQ
QinetiQ is a leading provider of mission-critical defence and security solutions to the UK and its allies, protecting lives by serving the national security interests of our customers. Our innovative research and development, specialist engineering expertise, unique test and training facilities and mission support and operations capabilities deliver sustained warfighting readiness and operational advantage.
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For further information please contact: |
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Andrew Carter, Group Director Investor Relations |
+44 (0) 7392 289116 |
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Stephanie Mann, Group Head of Media Relations |
+44 (0) 7770 720268 |
1 Underlying operating profit refers to profit from segments and excludes specific adjusting items and research and development expenditure credits.
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