QinetiQ Group (QQ) H1 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance in H1 FY25, with revenue up 7% year-over-year and operating profit up 7%, maintaining an 11.3% margin.

• Secured over £1 billion in orders, with a book-to-bill ratio of 1.3 and a robust funded order backlog of £2.9 billion, providing high visibility for future growth.

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

• On track to deliver FY 2027 guidance of c.£2.4 billion organic revenue at c.12% margin, with increasing visibility.

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

Financial highlights

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

• 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.

• Orders up 9% to £1,034.8 million; book-to-bill ratio at 1.3x; order backlog at £2.9 billion.

• Cash conversion was strong at 84%, supporting full-year guidance of ~90%+.

Outlook and guidance

• Full-year guidance unchanged: high single-digit organic revenue growth, stable operating margin, and cash conversion at ~90%+.

• FY 2027 outlook reaffirmed: c.£2.4 billion organic revenue at c.12% margin, ROCE at or above 15-20%.

• High backlog and pipeline (~£15 billion) provide strong multi-year growth visibility.