QinetiQ (GB:QQ)
LSE:QQ
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QinetiQ
(LSE:QQ)
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Rating:58Neutral
Price Target:
515.00 p
▲(8.42% Upside)
Action:ReiteratedDate:11/15/25
QinetiQ's overall stock score is primarily influenced by its strong financial performance and positive earnings call, which highlight strategic wins and a robust order backlog. However, technical analysis indicates bearish momentum, and valuation concerns due to a negative P/E ratio weigh down the score. The company needs to address operational challenges to improve profitability and investor sentiment.
Positive Factors
Strong Order Backlog
A record GBP 4.8bn backlog provides durable revenue visibility from multi-year, defence-focused contracts. This pipeline supports steady utilization of specialist facilities, reduces short-term top-line volatility, and underpins multi-period planning, bidding leverage and long-term client relationships.
Negative Factors
Organic Revenue Decline
A 3% organic revenue decline highlights exposure to contract timing, programme losses and portfolio disposals. Sustained top-line shrinkage reduces scale advantages, pressures fixed-cost absorption and constrains long-term reinvestment in R&D and specialised facilities if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Order Backlog
A record GBP 4.8bn backlog provides durable revenue visibility from multi-year, defence-focused contracts. This pipeline supports steady utilization of specialist facilities, reduces short-term top-line volatility, and underpins multi-period planning, bidding leverage and long-term client relationships.
Read all positive factors
QinetiQ (QQ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.41B
Dividend Yield2%
Average Volume (3M)1.20M
Price to Earnings (P/E)20.0
Beta (1Y)0.74
Revenue Growth-4.59%
EPS Growth-256.51%
CountryUK
Employees8,500
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.13
Shares Outstanding525,027,340
10 Day Avg. Volume1,056,778
30 Day Avg. Volume1,195,703
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)3.47
Price to Sales (P/S)1.13
P/FCF Ratio19.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£545.00Price Target Upside14.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.31
Revenue Forecast (FY)£1.93B
QinetiQ Business Overview & Revenue Model
Company Description
QinetiQ Group plc operates as a science and engineering company primarily in the defense, security, and infrastructure markets in the United States, Australia, Europe, and internationally. The company operates through EMEA Services and Global Prod...
How the Company Makes Money
QinetiQ makes money primarily by delivering contracted services and solutions to defence and security customers, with revenues largely derived from long-term and multi-year contracts. Key revenue streams include: (1) Services and engineering suppo...
QinetiQ Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted a strong order backlog and successful restructuring efforts, particularly in the U.S. However, there were notable challenges, including revenue declines and market pressures in Australia and the U.K. The company remains confident in its long-term growth potential and maintained its full year guidance.Positive Updates
Record Order Intake and Backlog
Order intake for the half was GBP 2.4 billion, driving a closing order backlog of GBP 4.8 billion, both reported records for the group.
Negative Updates
Revenue Decline
Revenue was down 3% on an organic basis at GBP 900 million due to sale of Fed IT business and tough market conditions.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Order Intake and Backlog
Order intake for the half was GBP 2.4 billion, driving a closing order backlog of GBP 4.8 billion, both reported records for the group.
Read all positive updates
Company Guidance
In the recent call, the company provided a comprehensive overview of its fiscal performance and future outlook amidst challenging market conditions. Key metrics highlighted include a record order intake of GBP 2.4 billion and a closing order backlog of GBP 4.8 billion, although revenue saw a 3% organic decline to GBP 900 million. The book-to-bill ratio stood at 0.9x, reflecting delays in contract awards, particularly in the U.K. and Australia. Despite these challenges, underlying profit was GBP 96 million, with a margin of 10.7%, supporting a full-year margin target of around 11%. The company emphasized its strategic positioning with significant milestones, such as the GBP 1.5 billion extension of the LTPA contract and an enhanced EDP contract, underpinning long-term growth visibility. The company also reported strong cash conversion at 85% and a leverage ratio of 0.6x, with shareholder returns totaling GBP 101 million through dividends and a share buyback program. The guidance remains unchanged, projecting circa 3% organic growth on a like-for-like basis, with a continued focus on execution and capital discipline to navigate market headwinds and drive value creation for shareholders.QinetiQ Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
65
Positive
Cash Flow
70
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.93B | 1.91B | 1.58B | 1.32B | 1.28B |
| Gross Profit | 1.93B | 268.70M | 480.50M | 416.40M | 431.80M |
| EBITDA | 26.20M | 292.90M | 226.70M | 176.60M | 205.60M |
| Net Income | -185.70M | 139.60M | 154.40M | 90.00M | 121.70M |
Balance Sheet | |||||
| Total Assets | 1.83B | 2.11B | 2.10B | 1.79B | 1.50B |
| Cash, Cash Equivalents and Short-Term Investments | 290.60M | 231.00M | 155.60M | 248.30M | 190.60M |
| Total Debt | 428.90M | 391.80M | 368.90M | 22.10M | 26.70M |
| Total Liabilities | 1.20B | 1.18B | 1.13B | 746.70M | 611.60M |
| Stockholders Equity | 626.50M | 926.10M | 968.30M | 1.04B | 884.60M |
Cash Flow | |||||
| Free Cash Flow | 112.50M | 146.80M | 97.00M | 106.40M | 102.10M |
| Operating Cash Flow | 221.30M | 243.10M | 206.00M | 190.70M | 178.00M |
| Investing Cash Flow | 400.00K | -99.10M | -464.40M | -83.60M | -49.60M |
| Financing Cash Flow | -158.40M | -63.20M | 159.70M | -50.40M | -55.60M |
QinetiQ Technical Analysis
Negative
475.00
Price Trends
501.15
Negative
471.77
Negative
481.74
Negative
Market Momentum
-7.51
Positive
35.19
Neutral
15.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:QQ, the sentiment is Negative. The current price of 475 is below the 20-day moving average (MA) of 497.21, below the 50-day MA of 501.15, and below the 200-day MA of 481.74, indicating a bearish trend. The MACD of -7.51 indicates Positive momentum. The RSI at 35.19 is Neutral, neither overbought nor oversold. The STOCH value of 15.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:QQ.
QinetiQ Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £569.10M | 24.99 | 11.27% | 1.58% | 23.91% | -14.66% | |
69 Neutral | £61.00B | 24.91 | 17.90% | 1.99% | 11.60% | 8.03% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £1.38B | 32.18 | 13.12% | 1.64% | -2.53% | 22.25% | |
58 Neutral | £2.41B | 20.00 | -35.50% | 2.00% | -4.59% | -256.51% | |
54 Neutral | £499.60M | 79.43 | 4.62% | 1.02% | 10.74% | 237.07% | |
41 Neutral | £29.68M | -0.12 | 192.83% | ― | ― | ― |
* Industrials Sector Average
GB:QQ
QinetiQ
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16.84%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.