QinetiQ (QY6) AI Stock Analysis

7 Followers

QinetiQ

(Frankfurt:QY6)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Backlog VisibilityThe GBP 4.4 billion backlog provides a substantial base of contracted work and improves revenue visibility over coming periods. This supports planning, resource allocation and cash generation, while reducing reliance on winning entirely new business each quarter.

Negative Factors

Revenue and Profit VolatilityThe sharp revenue contraction and recent loss show that QinetiQ's earnings base has not yet demonstrated consistent stability. Although profitability returned, volatile revenue and margins could constrain planning, investment capacity and confidence in sustainable earnings power.

QinetiQ (QY6) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 2.46B
Dividend Yield: 2.00%
Average Volume (3M): 890
Price to Earnings (P/E): -53.9
Beta (1Y): 0.97
Revenue Growth: 0.64%
EPS Growth: 77.92%
Country: Germany
Employees: 7,378
Sector: Industrials
Sector Strength: 63
Industry: Aerospace & Defense

QinetiQ Business Overview & Revenue Model

Company Description

QinetiQ Group plc operates as a prominent science and engineering enterprise, primarily serving the defense, security, and infrastructure sectors across the United States, Australia, Europe, and other international markets. The company is structured...

QinetiQ Earnings Call Summary

Earnings Call Date:Nov 12, 2026(Q2-2027)|% Change Since:-1.97%|Next Earnings Date:May 27, 2027

Earnings Call SentimentPositive

The call was predominantly positive. Management reported solid first-half revenue, profit, margin, orders, backlog, EPS and ROCE performance, reaffirmed full-year guidance, and outlined significant growth opportunities in the U.K., European NATO and key allied markets. The main negatives were near-term budget pressures, the decline and strategic exit from the U.S. business, a GBP 175 million noncash impairment, the GBP 15 million to GBP 20 million U.K. Intelligence revenue drag, and lower first-half cash conversion. Highlights significantly outweighed the lowlights.

Positive Updates

Solid First-Half Financial Performance

First-half revenue increased 3% to GBP 923 million, operating profit rose 14% to GBP 110 million, operating margin improved to 11.9%, and operating cash flow was GBP 113 million. Orders increased 9% and closing order backlog was GBP 4.4 billion.

Negative Updates

Near-Term Customer Budget Pressures

The first-half performance was delivered against a backdrop of near-term customer budget pressures. These pressures continued to affect the timing of certain awards, and market headwinds remained in the U.K., U.S. and Australia.

Company Guidance

FY ’27 guidance is unchanged and includes a full year of U.S. performance; excluding the U.S. business, revenue is expected to grow circa 4% to 6%, margin is expected to be in the 11.5% to 12% range, cash conversion is expected to remain at around 90%, and EPS growth is expected to be in the 8% to 10% range, while the 3-year free cash flow guide remains at the GBP 550 million level. Pro forma FY ’26 excluding the U.S. business showed orders at GBP 1.6 billion, revenue at GBP 1.6 billion, margin at circa 12%, cash conversion at 100% and order backlog at GBP 4.2 billion. The company expects U.K. Intelligence to deliver modest growth this year, said the U.K. defense business has grown at the high single-digit level, expects progression next year and then double-digit growth, and said the U.K. defense investment plan has committed GBP 68 billion this financial year, growing at 5% over the next 3 years.

QinetiQ Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:QY6 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GB:AVON	75Outperform	GBP 687.62M	28.79	17.35%	0.80%	9.82%	203.64%
GB:BA	72Outperform	GBP 55.45B	26.94	17.49%	2.00%	7.20%	8.54%
GB:CHRT	68Neutral	GBP 580.17M	24.47	13.59%	1.43%	13.46%	15.89%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GB:CHG	53Neutral	GBP 1.38B	41.42	9.03%	1.60%	-3.99%	-22.35%
GB:ALRT	39Underperform	GBP 12.93M	-1.62	-241.82%	―	―	―

* Industrials Sector Average

Performance Comparison

DE:QY6 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:QY6	QinetiQ Group plc	6.21	1.32	26.97%
GB:BA	Bae Systems Plc	1886.00	114.33	6.45%
GB:AVON	Avon Technologies plc	2310.00	435.97	23.26%
GB:CHG	Chemring (CHG)	507.00	3.21	0.64%
GB:CHRT	Cohort plc	1248.00	81.43	6.98%
GB:ALRT	Defence Holdings Plc	0.53	-1.52	-74.39%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

QinetiQ AI Stock Analysis