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QinetiQ Group PLC on Thursday extended its share buyback as it reported strong profit growth supported by a record order intake. In response, shares in the defence technology company jumped 10% to 475.62 pence each in London on Thursday morning. Farnborough, Hampshire-based QinetiQ said it swung to a pretax profit of £155 million in the half-year to March 31 from a loss of £106 million the year prior. Underlying operating profit increased 18% to £218 million from £185 million at a margin of 11.3%, up from 9.6%. Revenue edged down 0.5% to £1.92 billion from £1.93 billion, but increased 1.3% on an organic basis driven by a good UK performance. Earnings per share totalled 20.1 pence, swung from 33.0p losses per share a year ago. On an underlying basis, EPS grew 21% to 31.5p from 26.1p. The FTSE 250 listing flagged a record order intake of £3.57 billion, up 83% on-year, and record year-end backlog of £4.8 billion. Chief Executive Steve Wadey said: ‘We have delivered a resilient performance in more challenging markets, with organic revenue growth, margin expansion and strong cash generation driven by disciplined execution and restructuring. Our record order intake and £4.8 billion backlog provide clear visibility of sustainable growth and strong multi-year cash flows.’ Free cash flow ticked up to £159 million from £113 million a year ago. Qinetiq’s total dividend was raised by 24% to 11.00 pence per share from 8.85p, including a final payout of 8.0p, lifted from 6.05p. In addition, it announced a £200 million extension to its existing share buyback programme, over two years commencing in March 2027, when the firm completes its current buyback. In January 2024, QinetiQ announced a £100 million share buyback, which it extended by £50 million in November of that year, with a further £200 million extension announced in March 2025. For financial 2027, it expects revenue growth between 3% and 5%, an operating margin 11.0% to 11.5%, EPS growth of 8% to 10% with more than £550 million of free cash flow targeted over financial 2027 to 2029. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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