QinetiQ Group (LSE:QQ.), the London-listed defence technology company, guided revenue growth of 3-5% and an operating margin of 11.0-11.5% for the year to 31 March 2027 after publishing FY26 results for the year ended 31 March.
For the year ended 31 March, revenue was £1.923bn, broadly flat year-on-year with around 1% organic growth; underlying operating profit rose 18% to £218m, and underlying basic EPS increased 21% to 31.5p.
Order intake was the standout operational metric at a record £3,573m, leaving a year-end backlog of £4.8bn (funded backlog £4.4bn) and a book-to-bill of c.1.14x, which management says provides multi-year revenue visibility.
Cash generation strengthened with FY26 free cash flow of £159m (+41%), net debt of £159m at year-end and a targeted >£550m of free cash flow over FY27-29 alongside guidance for cash conversion of >90%.
Board returns were lifted with a 24% increase in the full-year dividend to 11.00p (final proposed 8.00p) and a £200m extension to the share buyback programme, while specific adjusting items amounted to £77.4m in FY26 versus £305.9m in FY25.
“Our record order intake and £4.8bn backlog provide clear visibility of sustainable growth and strong multi‑year cash flows,” Steve Wadey, Group Chief Executive Officer, said.
