QinetiQ Group (QQ) Q1 2027 TU earnings summary

Executive summary

• First quarter trading aligned with full-year expectations, supported by a record opening order backlog.

• Revenue visibility remains strong, underpinned by robust demand and government defence priorities.

• UK Defence Investment Plan and NATO Summit reinforce sector growth and QinetiQ's strategic positioning.

Financial highlights

• FY27 guidance: 3-5% revenue growth, 11.0-11.5% underlying operating profit margin, 8-10% EPS growth, and over 90% cash conversion.

• First-half revenue expected to be about 46% of full-year revenue, with an underlying operating profit margin of approximately 11%.

• Targeting over £550m free cash flow for FY27-29.

Outlook and guidance

• Revenue, profit, and EPS growth targets reaffirmed for FY27.

• Continued strong cash generation and high conversion rates expected.

• Next update on US business review scheduled for November 2026.