QinetiQ Shares Plunge 20% as US and UK Defence Contract Delays Hit Revenue

The British defence firm cuts growth forecasts and restructures US operations amid geopolitical uncertainty and shifting spending priorities.

QinetiQ has revised its annual organic revenue growth target to 2%, down from 7%, and reduced profit margin expectations to 10%, citing delays in short-term contract awards in the US and UK.
The company's US operations will undergo restructuring, with a £140 million impairment charge and additional one-off costs of £25-30 million related to inventory and cost recovery challenges.
Geopolitical uncertainty, including shifts in US defence policy under President Trump and a UK defence review, has led to delays in high-margin product sales and contract awards.
QinetiQ's UK intelligence division, which accounts for 25% of revenue, has experienced contract delays, while its main UK defence division, responsible for 50% of revenue, continues to perform well on long-term contracts.
The company announced an extension of its share buyback program, returning £200 million to shareholders over two years, as it seeks to reassure investors despite near-term volatility.