QinetiQ Group raises dividend 24%, underlying profit +18%, backlog hits £4.42B
QinetiQ Group reported a fiscal year EPS loss of $0.58 on revenue of $1.27B, missing consensus estimates of $0.22 EPS and $1.35B revenue. Underlying operating profit rose 18% to £218M, dividend increased 24%, £200M share buyback added, and record order intake jumped 83% to £3.57B, lifting backlog to £4.42B.
1. Financial Results and EPS Shortfall
QinetiQ Group recorded an EPS loss of $0.58 for the period, falling short of the $0.22 consensus estimate, while revenue reached $1.27 billion versus expectations of $1.35 billion. The negative EPS reflects a net loss for the period despite solid underlying operations.
2. Strong Profit Growth and Shareholder Returns
Underlying operating profit climbed 18% to £218 million as management signaled confidence by boosting the dividend by 24% and allocating an additional £200 million to its share buyback program. The company has also launched a strategic review of its U.S. business and raised its fiscal 2027 forecast.
3. Record Orders Boost Backlog
QinetiQ secured a record order intake of £3.57 billion, up 83% year-on-year, driving its funded order backlog to £4.42 billion. This elevated backlog provides enhanced visibility into future revenue streams and underpins the company’s growth outlook.