QinetiQ Group (QQ) Trading update summary

Executive summary

• Secured over £3bn in orders year to date, including major contracts for Typhoon engineering services and laser technology for future warfare.

• Order backlog stands at approximately £5bn, with a qualified pipeline of £11bn, providing strong long-term visibility.

• Operational execution remains strong, with key milestones achieved on major UK and US framework contracts.

Financial highlights

• Expecting around 3% organic growth for the full year, with an operating margin of approximately 11%.

• EPS growth forecasted at 15-20% year-over-year.

• Cash conversion rate anticipated at about 90%.

• On track to deliver about £150m in free cash flow for the full year.

Outlook and guidance

• Near-term spending uncertainty persists, but full-year guidance remains unchanged.

• Confident in maintaining a book-to-bill ratio above 1x for the full year.

• Revenue cover at 94%, consistent with the previous year and half-year expectations.