Qinetiq shares surge on order intake record, buyback extension

(Sharecast News) - Shares in Qinetiq surged on Thursday as the UK defence company reported a big jump in its order book and extended its share buyback programme by £200m.

Order intake soared 83% to a record £3.5bn in fiscal 2026 with underlying operating profits up 18% to £218m as countries around the world spend more on weapons in response to the growing geopolitical instability.

Qinetiq's order backlog rose 55% to £4.4bn. It is now forecasting 2027 revenue growth of 3-5% and operating margins of 11.0-11.5%. Shares in the company were up more than 7% in morning trade.

"The threat environment continues to intensify, spanning advanced weapons, drones, cyber and electronic warfare. Customers are investing to deter and defeat increasingly sophisticated threats, with a growing emphasis on rapid innovation, resilience and adaptability," the company said.

"At the same time, autonomy is proliferating across domains. Demand for uncrewed and autonomous systems is accelerating, alongside the need to deploy these capabilities safely, at pace and at scale."

The company added that it was reviewing options for its struggling US business, as the defence services market "remained challenging during the year, reflecting a combination of budgetary pressures, a shift in customer spending towards platform and hardware programmes and slower contract awards".

Reporting by Frank Prenesti for Sharecast.com

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