20th Jan 2026 09:56
(Alliance News) - QinetiQ Group PLC on Tuesday reiterated its full-year guidance despite "challenging" trading in core markets, but the defence technology firm said it remains "well positioned", backed by a strong order book.
Farnborough, Hampshire-based QinetiQ said it continues to expect 3% organic revenue growth, an operating margin of 11%, cash conversion of 90%, and earnings per share growth of 15% to 20% in financial 2026, which ends on March 31.
In financial 2025, QinetiQ reported revenue of GBP1.93 billion, an operating margin of 9.6%, cash conversion of 105%, and underlying EPS of 26.1 pence.
"Whilst the near-term trading environment in our core markets remains challenging and we have revenue to secure in the last quarter, we have achieved positive momentum on order intake. Our book-to-bill is now greater than 1x, and we remain confident in maintaining this ratio for the full year," the company said in a trading statement.
Shares in QinetiQ were up 0.5% at 524.00p each in London on Tuesday.
QinetiQ said it continues to be "highly" cash generative and is on track to deliver GBP150 million of free cash flow for the full year. This free cashflow will all be distributed back to shareholders through dividends and the company's on-going share buyback programme, it said.
Chief Executive Steve Wadey said QinetiQ has made "positive progress" securing more than GBP3 billion orders year to date.
"We remain well positioned to deliver good in-year performance, long-term growth and value creation for shareholders. With an order backlog of around GBP5 billion and a qualified pipeline of GBP11 billion we have significant long-term visibility. Combined with our strong cash flow this allows for both investment in the business and compelling shareholder returns."
By Jeremy Cutler, Alliance News reporter
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