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Highlights:
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QinetiQ Group PLC reported continued growth in order intake during the second quarter, maintaining momentum towards meeting annual expectations.
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The company anticipates a high single-digit growth in organic revenue for the year, supported by significant contract wins.
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Cash conversion remains strong at around 80%, with a substantial portion of a £100 million buyback completed during the quarter.
QinetiQ Group PLC (LSE:QQ), a leading defence technology company, has announced robust order intake growth for the second quarter, positioning the firm on track to meet its annual performance expectations. The company reported that organic revenue is projected to grow by a high single-digit percentage over the year, reflecting a solid operational performance during this period.
The momentum in order intake has been significant, with contracted revenue aligning with the previous year’s figures, amounting to approximately £840 million at the half-year mark in 2023. Chief Executive Steve Wadey highlighted the company’s strong operational and financial performance, emphasizing that the services and products provided by QinetiQ remain highly relevant and valuable to customers, particularly in a context of heightened global security threats.
During the quarter, QinetiQ secured noteworthy contracts, including a ten-year agreement valued at €284 million with the German armed forces for aerial training services. Additionally, a three-year deal with the British Army has been established, potentially worth up to £150 million. The company also marked its entry into the U.S. market as a prime contractor through new navy and army contracts, indicating an expansion of its operational footprint.
Cash conversion for QinetiQ has remained consistent with historical performance, recorded at around 80%. Furthermore, the company successfully completed £62 million of a £100 million share buyback during the quarter, demonstrating a commitment to enhancing shareholder value.
Overall, QinetiQ’s performance reflects its strategic focus on maintaining growth and operational excellence, ensuring it remains well-positioned in the defence sector amid ongoing geopolitical changes.
