News

Steve Wadey, Group Chief Executive Officer said: Operational performance in the half has been in line with our expectations. Despite tough market conditions, we delivered against our record order backlog and implemented our restructuring activities, including disposal of the US Federal IT business. Our mission critical capabilities remain highly relevant in a growing defence market and together with our significant backlog and pipeline, we have confidence to drive sustained long-term growth and compelling value creation for our shareholders.

Financial highlights

	Underlying1 results		Statutory results
	H1 FY26	H1 FY25	H1 FY26	H1 FY25
Revenue	£900.4m	£946.8m	£900.4m	£946.8m
Operating profit2	£96.0m	£106.6m	£64.3m	£94.3m
Profit after tax	£76.8m	£80.9m	£38.3m	£63.0m
Earnings per share	14.2p	14.2p	7.1p	11.1p
Interim dividend per share	3.0p	2.8p	3.0p	2.8p
Order intake	£2,416.5m3	£1,034.8m
Funded order backlog	£4,345.7m	£2,936.1m
Net cash flow from operations	£127.9m	£130.9m	£100.4m	£118.1m
Net debt	£180.9m	£190.9m

Group financial performance in line with our expectations for the half

• Organic⁴ revenue down 3% due to US restructuring and tough near-term market conditions
• Underlying operating profit down 10% with margin ahead of guidance at 10.7%
• Underlying EPS flat at 14.2p reflecting the benefits of the accelerated share buyback
• Cash performance remains strong with good conversion at 85% and leverage at 0.6x⁵
• Orders of £2.4bn, with a book-to-bill⁶ of 0.9x impacted by near-term UK market conditions
• Progressive dividend growth of 7%, with interim dividend at 3.0p
• £101m total returns to shareholders (dividend and share buyback) in the first half

Highly relevant to our customers’ mission in a growing defence market

• Differentiated company highly relevant to the increasing threat, with strong fundamental growth drivers structurally aligned to increasing defence spend
• US restructuring on track with business refocused and a book-to-bill of 1.5x to drive sustainable growth
• Secured £1.5bn LTPA extension to transform UK’s Test & Evaluation (T&E) for future warfare
• Significant backlog of £4.8bn (funded and unfunded) and strong pipeline of £11bn gives good long-term visibility

FY26 guidance unchanged with continued discipline on capital deployment

• On-track to deliver c.3% organic revenue growth pre-FX and Federal IT disposal
• Revenue cover of 89% for the second half of FY26
• Margin at c.11% with c.90% cash conversion
• EPS growth at 15-20%

Dividend Declaration

The company announces an interim dividend of 3.0p (H1 FY25: 2.8p) per share for the financial year ending 31 March 2026 on the Company’s shares of 1 pence. The interim dividend will be paid on Friday 6 February to shareholders on the register on Friday 9 January 2026. The interim dividend represents a 7% increase on the prior half year dividend in line with our progressive dividend policy. The full year proposed dividend will be announced with our full year preliminary results in May 2026.

The dividend is conditional upon the Directors not having determined (at their discretion) to cancel the dividend at any point prior to its payment.

This announcement contains regulated information as per Disclosure Guidance and Transparency Rule (DTR) 6.3.

Interim results presentation:

We will be hosting an in-person results presentation at 09:30 GMT at Deutsche Numis, 45 Gresham Street, London, EC2V 7BF. Registration to join in-person or via the live webcast is available via our website at https://www.qinetiq.com/en/investors or at https://brrmedia.news/QQ_FY26_Interim.

The interim results are also available in full on our Results, Reports & Presentations page.

The interim results for the year ending 31 March 2026 have been submitted in full unedited text to the Financial Conduct Authority’s National Storage Mechanism and will be available shortly for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

For further information please contact:

Stephen Lamacraft, Interim Group Investor Relations Director: +44 (0) 7471 885817
Stephanie Mann, Group Head of Media Relations: +44 (0) 7770 720268

---

¹ Definitions of the Group’s ‘Alternative Performance Measures’ can be found in the glossary.
² Underlying operating profit refers to operating profit from segments. See note 2 to the interim financial statements for details.
³ Including £1.5bn LTPA extension plus award of £166m relating to current investments.
⁴ Organic growth is the level of year-on-year growth, expressed as a percentage, calculated at constant prior year foreign exchange rates, adjusting for business acquisitions and disposals to reflect equivalent composition of the Group.
⁵ Net debt to underlying EBITDA for the last 12 months.
⁶ B2B ratio is orders won divided by revenue recognised, excluding LTPA orders and revenue of £132.1m (H1 FY25: £130.7m).