Qinetiq Group PLC: Cash Returns Anchor the Investment Case

研报英文原文证据摘录

Qinetiq Group PLC: Cash Returns Anchor the Investment Case

Equity Research

European Aerospace & Defence

21 May 2026

Qinetiq Group PLC

Cash Returns Anchor the

Investment Case

QQ offers LDD TSR with low volatility: 8-10% EPS growth in QQ.L/QQ/ LN OVERWEIGHT

FY27 underpinned by buybacks (£100mn p.a. out to FY29) on Unchanged

European Aerospace &

strong FCF (£550mn cumulated over next 3 years), plus Defence NEUTRAL

Unchanged

dividends (payout now at 35-40%). EPS estimates broadly Price Target GBp 540

Unchangedunchanged, reiterate OW.

Price (20-May-26) GBp 432

Potential Upside/Downside +25.1%QQ FY26 results and FY27 guidance largely in line with expectations. Despite softer organic

Source: Bloomberg, Barclays Research

revenue growth (1.3% vs. guidance ~3%) in FY26, underlying operating profit came in-line with

consensus expectations. Margin discipline remained the core driver of profitability, with

Market Cap (GBP mn) 2247management holding margins at 9% at Global Solutions despite the 7% organic revenue decline

Shares Outstanding (mn) 520.82and EMEA Services posting margin at the high end of the range (of 11-12%) at 11.9%. Strong FCF

Free Float (%) 84.71of £159mn funded continued dividends and buybacks, supporting EPS growth of 21%

52 Wk Avg Daily Volume (mn) 1.2(guidance: +15-20%) to 31.5p. Looking ahead, management expects another challenging year,

Dividend Yield (%) 2.10with revenue guided to +3% to +5% for FY27 and broadly stable margins (11-11.5% range vs.

Return on Equity TTM (%) -28.3011.3% in FY26). Earnings progression (EPS guided to +8-10%) should remain supported by

Current BVPS (GBp) 103strong cash generation (>90% FCF conversion) and capital allocation, notably through

Source: Bloomberg

buybacks.