QinetiQ Group plc, a player in defence technology, has unveiled its first quarter trading update for FY25, marking a solid start to the financial year.
The company reported progress across various operational fronts.
The trading update underlines QinetiQ’s growth trajectory. The company is on track to achieve high single-digit organic revenue growth and stable margins, in alignment with its FY25 guidance. Notably, the company’s order intake performance has surged, elevating revenue under contract for the full year to 73%, an increase from the previous quarter.
QinetiQ also reported strong financial results for FY24, with revenue and operating profit rising by 21% and 20%.
Steve Wadey, Group Chief Executive Officer, expressed satisfaction with QinetiQ’s performance, emphasising the company’s commitment to delivering shareholder value amidst a challenging geopolitical landscape. “I am pleased that we have delivered a good start to the year, with performance for the first quarter in line with our expectations and attractive shareholder returns,” Wadey stated.
The EMEA Services division reported growth, driven by long-term contracts such as the Engineering Delivery Partner role in the UK and Major Service Provider engagements in Australia. Additionally, QinetiQ secured a new framework contract to provide test and evaluation services to NATO, reinforcing its footprint in defence solutions.
QinetiQ achieved milestones in global solutions, including a contract win in the US for the Future Long Range Assault Aircraft (FLRAA) programme. The contract solidifies QinetiQ’s role as the sole source provider of survivability solutions, leveraging its light-appliqué armour systems technology. Furthermore, the company expanded its contract value by delivering the Tethered Aerostat Radar System and securing framework agreements with new National Security customers.
Amidst these operational successes, QinetiQ also announced leadership changes. Martin Cooper was appointed as Group CFO effective September 2024, earlier than originally planned.
Looking ahead, QinetiQ remains confident in its ability to deliver organic revenue growth and shareholder returns. It aims towards its FY27 target of approximately £2.4bn in revenue at a 12% margin.
