QinetiQ : Preliminary Results for the year that ended 31st March 2026 - 21 May 2026 presentation

GINETIG

Resilient performance, foundations set for sustainable growth

Preliminary results for year-ended 31 March 2026 21 May 2026

Agenda

GINETIG

Highlights

Resilient performance,

foundations set for sustainable growth

FY26

Orders Revenue

• Resilient performance in more challenging markets

• Restructured the business, US options under active review

• Delivered higher-quality earnings and strong cash conversion

• Record order intake and backlog provides clear growth visibility

• Targeting ›£550m free cash flow over the next three years

• Dividend payout increased and share buyback extended

  1. Organic constant currency

  2. Operating profit from segments Funded and unfunded

  £5,575m £1,925m

  +83% +1.3%=

  Operating profit2 Free cash flow

  £218m £159m

  11.5%margin +41%

  Bacdog^ £4.8bn +41%

  GINETIG

  Improving earnings quality

  Delivered through restructuring, execution and strategic focus

  • Restructure with

  discipline

  • Execute with

  control

  
  
  
  
  

  Overall portfolio reshaped (US Fed IT disposal)

  Headcount resizing (c.1, 000 roles) and cost efficiency

  
  
  
  
  

  Strengthened delivery and business development

  Strong UK performance

  with 7% growth

  US business stabilised

  Improved margins and earnings quality

  Investment targeted on

  high return markets

  Major developments as HMG

  strategic partner (LTPA, EDP)

  Leveraging strengths into

  Australia and Europe

  GINETIG

  US business

  Operating environment, actions taken and current position

  
  
  

  US defence market challenging

• Heigntened geopolitical uncertainty benefited aefence hardware vs. services

• Impact of DOGE ana Government budget constraints slowing market order how

  Restructuring actions

• Resizing of cost base and simplification of operating footprint

• Exit from non-core activities including low return contracts ana Fed IT disposal

  Business focus

• Four diJerentiated segments delivering underlying growth ana aligned to customer priorities: Space & Missile Defence; Maritime; Sensors; Persistent Surveillance

  Current position

• Business stabilised at approximately S385m revenue

• Focus on driving organic growtn opportunities ana assessing fit within Group

  All options under active review to deliver enhanced returns

  
  
  

  GINETIG

  
  
  
  
  
  
  
  
  
  
  

  Financial highlights

  Delivering record orders, good profit and cash ñow in challenging markets

  FY26 FY25 % change % OCC' Key takeaways:

  Order intake		£3, 573m		£J, 955m		+83°		+85%
  Revenue Operating profit from segments		£1,925m £218m		£1,932m £185m		0°o +		+18°é
  Operating margin			9.6%		+170bps +170bps
  Underlying basic EPS	51.5p		26.1p		+21%
  Free cash flow	£159m		£113m
  Cash conversion	100°o		105%		-SOO
  ROCE	34°4		22%		+12ppts
  Full year dividend	11.00p		8.85p		+2 °o
  Organic constant currency

  • Record orders including the £1.7bn LTPA

    extension

  • £4.4bn funded backlog representing more than two years of revenues

  • Revenue 1% higher YoYOCC with strong UK progress partly offset by US portfolio actions

  • Underlying operating profit grew 18% YoY

  • Underlying margin +170bps higher at 11.Ti%

  • Cash conversion strong at 100%

  • ROCE 12 percentage points higher at 54%

  • Proposed dividend of 8p giving a full year payment of 11p (+21% YoY)

  • Dividend payout ratio increased to Ti5-40°é

GINETIG

Orders

Record order intake despite challenging markets

85% organic growth

85% total growth

Highlights:

Em 1,955 33

1,709 (85) (59)

3,573

LTPA extension

I, 09

Long-term revenue visibility Typhoon support

£205m

Long-term contract

R&D and innovation

£125m

Sovereign programmes

Space

£75m

FY25

EMEA Services LTPA Extension1 Global Solutions FX and disposal excl. LTPA Extension

FY26

Expanded growtn adjacencies

LTPA extension plus award of £166m relating to current LTPA investments

GINETIG

Revenue

1.3% organic growth

55

(29)

Strong UK growth partly osset by portfolio actions and market challenges

Em 1,952

(35)

1,925

Highlights:

EMEA Services

• UK grew 8% underpinned by the LTPA, framework contracts and laser development

• Australia reduced on loss of advisory

  work

  
  
  

  Global Solutions

  • Growth in Space partially offsetting impact of US market conditions and business exits

  • Solid growth in targets business

FY25

EMEA Services Global Solutions FX and disposal

FY26

GINETIG

Profit and margin

Strong recovery in margins driven by focused execution and cost actions

20

Em 185

18% organic growth

(1)

218

FY26 FY25

Em Em

Margin 11.9%

Margin

9.0%

A25 EMEA Services Global Solutions Foreign Exchange

Research and Development Expenditure Credit

FY26

GINETIG

Cash Now and net debt

Strongfreecashñowunderpins shareholder returns and balance sheet strength

100% cash conversion

£m 218 29 97

(52) (72) (60) 159 (183) (2) (26)

1. Research and Development Expenditure Credit

2. Other includes disposal of business purchase of own shares for incentive arrangements foreign exchange and lease related movements

   
   
   

   GINETIG

   Net interest & Free cash flow taxation

   Revenue growth

   Sustained multi-year growth underpinned by our leading UK portfolio

   8.5% revenue CAGR over FY21-26

   • Hign single-aigit growth achieved respite international heaawina

     Revenue by segment (Em)

     Segment CAGR

     cr UpcAGR8./%

     
     
     

     Strongly performing UK business

   • UK Defence is a reliable growtn engine delivering critical capabilities

   • UK Intelligence remains a structurally high-growth business

   • Timing of specific short-cycle work nas impactea nistorically

   • FY26 the UK grew 7" in challenging markets

     4.0%

     9.5%

     Opportunity to drive enhanced growth levels

   • UK increased spending levels in coming years

   • Leveraging UK to arive increases European revenues

   • US stabilised - focuses on ariving growth througn core franchises

FY21 FY22

FY23

• UK

  FY24

  • ROW

FY25 FY26

GINETIG

Capital allocation policy

Investing for growth, delivering returns

GINETIG

Guidance and financial summary

Clear growth visibility from FY27 and strong shareholder returns

FY27 Guidance

• 5-5% revenue growth

• 11.0-11.5% profit margin

• 8-10% EPS growth

• ›90% cash conversion

• ›£550m free cash flow FY27-FY29

  Dividends and buybacks are a core capital allocation priority

• Target dividend payout ratio of 55-40%

• Share buyback extended at £100m p.a. to FY29

  Dividend per share (p)

  16

  
  
  

  14

  
  
  

  12

  
  
  

  10

  
  
  
  
  

  8

  6

  4

  2

  0

  FY24

  FY25 FY26 FY27E FY28E

  GINETIG

  
  
  

  Our role in modern warfare today

  Aligned to structural trends shaping defence and security

  
  
  
  
  

  Translates into increasing demand

  We deliver trusted sovereign capability

  We innovate to deter and defeat

  • Warfighting readiness at pace

  • New platforms and technologies

  • Upgrades of existing platforms

  • Interoperability across domains and nations

Driving sustained growth in defence and technology services

We de-risk and accelerate adoption

We build operational readiness

GINETIG

Our "right to win"

High-barrier capabilities embedded in long-term programmes

Competitiveadvantage Customer positioning Strategic focus

Defensible market positions • Repeat awards with scope to expand • Long-term growth visibility

GINETIG

Delivering mission critical programmes

Proven capabilities at scale, delivering competitive advantage

Engineering Services

Accelerating operational outcomes

• Getting the right capabilities into service at pace

• We deliver high end engineering for complex defence systems

  
  
  

• £205m Typhoon aircraft contract enhancing airwolhiness and accelerating mission readiness

• Strengthened EDP partnership including Al augmentation at scale

  Delivering increased productivity forcustomers

  Mission Support & ODerations

  Protecting platforms with mission data

  
  
  

• Actionableintelligencecritical for safety in hostile environments

• We collect, manageandexploit data for defencemissions

• HMG MoU signed to design and build missiondatacapability in Belgium G150mprogramme

  
  
  

• Leveraging strength with UKMOD acrossNATO allies

  Mission data isa significant growth opportunity

  GINETIG

  Delivering national security priorities

  Proven capabilities advancing operational edge

  Test & Training

  Responding to growing T&E demand

  ==

  
  
  

• Specialist T&E critical to delivering

  warfighting readiness

• We operate unique capabilities & deliver high value test & training

  
  
  

• £1.5bn LTPA extension, expanding intohypersonics, autonomy and directed energyweapons

• Delivering urgent requirements for UK support to Middle East conflict

  Increasing utilisation through delivery to UK and NATOaIIies

  LTPA extension plus award of £166m relating to current LTPA investments

  Researcn & DeveloDment

  Delivering disruptive laser technologies

  
  
  

• Game-changing capability for

  counter-drone and air-defence

• We design andbuild high power laser sources for laser weapons

  
  
  

• £85m contracts in FY26 (+45%) for development and initial production for RoyalNavy

• Strong partnerships providing route to market e.g. MBDA, RHM

Lasertechnologiesarea significant growth opportunity

GINETIG

QINETIQ GENERAL

FY26 FY27 FY28 FY29 FY50 FY51

QINETIQ GENERAL

Summary and guidance

Foundations set for sustainable growth

• Resilient performance in more challenging markets

• Restructured the business, US options under active review

• Delivered higher-quality earnings and strong cash conversion

• Record order intake and backlog provides clear growth visibility

• Targeting ›£550m free cash flow over the next three years

• Dividend payout increased and share buyback extended

  FY27 guidance

• 5-5% revenue growth

• 11.0-11.5% operating margin

• 8-10% EPS growth

• ›90% cash conversion

GINETIG

COMMERCIAL IN CONFIDENCE

COMMERCIAL IN CONFIDENCE

Company strategy

Driving sustainable growth

Our strategy continues to evolve to match customer needs

GINETIG

Glossary

Term

Definition Term

Definition

B2B CAGR DOGE

DoW

EBITDA EDP EMEA

EPS HMG LTPA

M&A

Book-to-Bill

Compound Annual Growth Rate Department of Government Efficiency Department of War

Earnings Before Interest, Taxes, Depreciation and Amortisation Engineering Delivery Partner

Europe, Middle East and Australasia Earnings Per Share

His Majesty's Government

Long Term Partnering Agreement

Mergers and Acquisitions

OCC PPTS RDEC RHM ROCE

R&D SCO SDA TARS

T&E

WSRF

Organic Constant Currency

Percentage Points

Research and Development Expenditure Credit Rheinmetall

Return On Capital Employed Research and Development Strategic Capabilities Office Space Development Agency Tethered Aerostat Radar System Test and Evaluation

Weapons Sector Research Framework

GINETIG

Definitions of alternative performance measures

Underlying performance is stated before:

• Amortisation of intangibles arising from acquisitions

• Pension net finance income

• Gains/(losses) on aisposal of businesses, investments ana property

• Transaction, integration ana one-off remuneration costs in respect of business acquisitions and aisposals

• Impairment of property ana gooawill

• One-off perioa of digital investment

• Costs and otner impact of group-wide restructuring programmes

• Tax impacts of the above items

• Other significant non-recurring tax ana RDEC movements

  Book-to-bill:

• Orders won aivided by revenue recognises excluding LTPA contract

  Organic growth

• Tne level of year-on-year growth, expressed as a percentage, calculates at constant prior year foreign excnange rates, adjusting for business acquisitions ana aisposals to reject equivalent composition of tne Group.

  Underlying cash conversion or cash conversion ratio:

• Tne ratio of underlying net cash from operations to underlying EBITDA

GINETIG

Additional technical guidance

Underlying net finance expense'

Effective tax rate1 Tax cash outflow Capital expenditure Leverage

ROCE

FXUSD:GBP

FY26

£17.6m

15.9°xé

£44.4m

£72.5m

0.5X

3k°zâ

1.34

FY27

Illustrative tax rate to reflect RDEC credit included in the tax line be used on Underlying Operating Profit from Segments). Equivalent published tax rate of 26.6% excluding the benefit of RDEC in the tax rate GINETIG

Income statement including specific adjusting items

Definitions of Alternative Performance Measures can be found in the Appendix

GINETIG

Impact of foreign exchange translation

• Key driver for FX change in the year was the translation of US dollars. The average USD rate for FY26 was 1.54, compared to1.28 in FY25

• US revenue was 15% of the FY26 total

• A1 cent movement in the USD rate would impact Group revenue by c. £5m

Definitions of Alternative Performance Measures can be found in the Appendix GINETIG

Understandingourdifierent underlying profitandtaxrates

Definitions of Alternative Performance Measures can be found in the Appendix

GINETIG

Underlying earnings per share (pence)

26.1 1.6

(0.1) (0.2) (0.1)

31.5

Post-tax

GINETIG

Cash conversion

Definitions of Alternative Performance Measures can be found in the Appendix

GINETIG

Movements in net debt

GINETIG