QinetiQ (QQ) Shares Edged Higher for the Third Day on Q2 Results

The QinetiQ Group plc (LON: QQ) share price increased for the third day after the company released a trading update about its performance in Q2 2023. The company delivered an impressive second-quarter performance, improving its organic revenue growth and operating profit margin during the year’s first half.

Furthermore, the company secured an all-time high order intake for the year's first half, amounting to approximately £950 million. This achievement has bolstered the firm’s order backlog and reinforced its revenue under contract for the entire year, which remains consistent with the previous year at 90%.

While the company’s cash conversion during the year's first half showed a slight decrease compared to the previous year, this was mainly attributed to short-term timing issues. However, the firm reassured its stakeholders that its full-year cash conversion was on track and aligned with its previous forecast. 

QinetiQ also intends to maintain stable margins per its full-year expectations and long-term guidance. The performance of Global Solutions has been nothing short of stellar. The former Avantus business in the United States continues to impress by generating revenue at double-digit margins.

The company won two crucial contracts with the US military, one being the five-year, $224 million contract to provide mission support to the US Space Development Agency (SDA) and the second being the five-year, $127 million contract with the US Department of Defense (DoD) Strategic Capabilities Office (SCO).

Steve Wadey, QinetiQ Group’s Chief Executive Officer, said: “I am extremely pleased that the Group continues to perform well, delivering strong organic revenue growth at stable margins in the first half of the year, moderately ahead of expectations.  Record first half order intake demonstrates that our distinctive offerings remain in high demand across all our home countries, as our people continue to deliver high-value services and products critical to national defence and security. Based on our strong first-half performance, we have de-risked our full-year results and are on track to deliver another year of good organic revenue growth at stable margins in line with our full-year expectations.” 

QinetiQ share price. 

The QinetiQ share price edged 1.50% higher to trade at 331.60p, from Tuesday’s closing price of 326.70p.