QinetiQ Shares Plummet 20% Following Delays in UK and US Defence Contracts

The British defence firm cites restructuring costs, government policy changes, and geopolitical uncertainty as reasons for reduced revenue and profit forecasts.

QinetiQ warned of delays in awarding short-term defence contracts in both the UK and US, impacting revenue and profit expectations for the fiscal year ending March 31, 2025.
The company announced a £140 million impairment charge related to its American business, which is undergoing restructuring to drive future growth.
Organic revenue growth for the current fiscal year has been reduced to approximately 2%, down significantly from 14% in the previous year.
In the UK, the Labour government has promised to accelerate defence procurement, but industry clarity is pending a government spending review this spring.
Despite challenges, QinetiQ plans a £200 million share buyback over the next two years, signaling confidence in its long-term strategy.