QinetiQ Group, the defence and technology services company, said trading in the first quarter to 30 June was consistent with full-year expectations, citing a record opening order backlog for strong revenue visibility.
The group reiterated its FY27 guidance of 3-5% revenue growth, an underlying operating profit margin of 11.0-11.5%, earnings per share growth of 8-10% and cash conversion above 90%.
QinetiQ also maintained its target of more than £550m in free cash flow over the FY27-29 period, with first-half revenue expected to represent about 46% of the full-year total and an underlying operating profit margin of around 11%.
The UK Government's Defence Investment Plan, published on 30 June, set out funding priorities that QinetiQ said align with its capabilities in test and evaluation, mission systems integration, training, digital capability, autonomy, cyber and directed energy.
"The UK Defence Investment Plan and the NATO Summit reinforce the urgency to transform warfighting capabilities at pace and accelerate readiness," said Steve Wadey, group chief executive officer.
QinetiQ continues to review options for its US business, with the next update due alongside interim results on 12 November.
