QinetiQ Group (QQ) H1 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in H1 FY25, with revenue up 7% and operating profit up 7%, maintaining an 11.3% margin, and record order intake despite a challenging geopolitical environment.

• Secured over £1 billion in orders, with a book-to-bill ratio of 1.3, and maintained a robust order backlog of £2.9 billion, supporting long-term growth outlook.

• Extended the share buyback program by £50 million and increased the dividend by 7%, reflecting disciplined capital allocation and increased shareholder returns.

• Leadership strengthened with new CFO and COO appointments to support global expansion.

• Well positioned for long-term sustainable growth and compelling value creation for shareholders.

Financial highlights

• Revenue reached £946.8 million, up 7% year-over-year; organic revenue up 8%.

• Underlying operating profit rose 7% to £106.6 million, with a stable 11.3% margin.

• Underlying basic EPS increased 6% to 14.2p; statutory EPS at 11.1p.

• Cash conversion improved to 84%, supporting full-year guidance of ~90%.

• Return on capital employed at 20.1%, at the top end of the 15%-20% midterm guide.

Outlook and guidance

• FY25 guidance unchanged: high single-digit organic revenue growth at stable margin and high cash conversion (90%+).

• FY27 target: c.£2.4 billion organic revenue at c.12% margin, ROCE at or above 15-20%.

• Robust pipeline and backlog provide high revenue visibility and confidence in multi-year guidance.