# QinetiQ reports first-quarter trading in line with expectations

- Link: https://www.directorstalkinterviews.com/qinetiq-reports-first-quarter-trading-in-line-with-expectations/4121256529
- Published: 2026-07-16T07:24:53+01:00
- Author: Ethan Davis

**QinetiQ Group Plc** (LON:QQ), the leading defence and technology services company
focused on mission-led innovation, has issued 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 profit^(1) 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 profit^(1) 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.

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.

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