Slide 1: Resilient performance, foundations set for sustainable growth
Resilient performance, foundations set for sustainable growth Preliminary results for year - ended 31 March 2026 21 May 2026
Slide 2: Basis of preparation
Basis of preparation Throughout this presentation, certain measures are used to describe the Group’s financial performance, which are not recognised under IFRS or other generally accepted accounting principles (GAAP). The Group’s Directors and management assess financial performance based on underly
Slide 3: Agenda
Agenda 1 Highlights and review Steve Wadey 2 Financial results Martin Cooper 3 Strategic outlook Steve Wadey 4 Q&A Both 3 Preliminary results for year ended 31 March 2026 | 21 May 2026 | ©
Slide 4: Highlights
Highlights Resilient performance, FY26 foundations set for sustainable growth Orders Revenue • Resilient performance in more challenging markets • Restructured the business, US options under active review £3,573m £1,923m • Delivered higher -quality earnings and strong cash conversion +83% +1.3% (OCC
Slide 5: Improving earnings quality
Improving earnings quality Delivered through restructuring, execution and strategic focus ✓ Restructure with ✓ Execute with ✓ Growth with discipline control focus Overall portfolio reshaped Strong UK performance Investment targeted on (US Fed IT disposal) with 7% growth high return markets Headcount
Slide 6: US business
US business Operating environment, actions taken and current position US defence market challenging • Heightened geopolitical uncertainty benefited defence hardware vs. services • Impact of DOGE and Government budget constraints slowing market order flow Restructuring actions • Resizing of cost base
Slide 7: Financial results
Financial results Martin Cooper Group Chief Financial Officer 7 Preliminary results for year ended 31 March 2026 | 21 May 2026 | ©
Slide 8: Financial highlights
Financial highlights Resilient performance, foundations set for sustainable growth Delivering record orders, good profit and cash flow in challenging markets Record order intake Strong UK revenue offset Double -digit Strong cash Enhanced positioning the Group by portfolio actions and operating profi
Slide 9: Financial highlights
Financial highlights Delivering record orders, good profit and cash flow in challenging markets FY26 FY25 % change % OCC 1 Key takeaways: • Record orders including the £1.7bn LTPA Order intake £3,573m £1,955m +83% +85% extension Revenue £1,923m £1,932m 0% +1.3% • £4.4bn funded backlog representing m
Slide 10: Orders
Orders Record order intake despite challenging markets 85% organic growth 83% total growth Highlights: LTPA extension £m £1,709m 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
Slide 11: Revenue
Revenue Strong UK g rowth partly offset by portfolio actions and market challenges 1.3% organic growth Highlights: EMEA Services £m • UK grew 8% underpinned by the LTPA, framework contracts and laser development • Australia reduced on loss of advisory work Global Solutions • Growth in Space partiall
Slide 12: Profit and margin
Profit and margin Strong recovery in margins driven by focused execution and cost actions 18% organic growth FY26 FY25 £m £m Operating profit from segments 217.9 185.4 £m RDEC¹ Income 29.3 30.0 Underlying operating profit before tax 247.2 215.4 Digital investment (23.6) (20.8) Amortisation of intang
Slide 13: Cash flow and net debt
Cash flow and net debt Strong free cash flow underpins shareholder returns and balance sheet strength 100% cash conversion £m Net Debt £159m Leverage 0.5x Underlying RDEC¹ Depreciation Underlying Underlying Underlying Exceptional Net Capex Net interest & Free cash flow Shareholder Other² Change in n
Slide 14: Revenue growth
Revenue growth Sustained multi - year growth underpinned by our leading UK portfolio 8.5% revenue CAGR over FY21 - 26 • High single - digit growth achieved despite international headwind Segment Revenue by segment (£m) CAGR Strongly performing UK business • UK Defence is a reliable growth engine del
Slide 15: Looking ahead
Looking ahead Enhancing quality and predictability of earnings Record backlog provides good revenue visibility Controlled execution with cost discipline FY26 book -to-bill 1 Order provides momentum for Focus on disciplined delivery and Increased margins with enhanced growth 1.14x improved performanc
Slide 16: Capital allocation policy
Capital allocation policy Investing for growth, delivering returns Investment in our people Investment in the Capex to drive growth business R&D increasing Free cash flow FY27 to FY29 > £550m ; ROCE 25 - 30% Dividend Buyback M&A Payout ratio £100m p.a. Technology 35 - 40% FY27 - FY29 focused bolt -
Slide 17: Guidance and financial summary
Guidance and financial summary Clear growth visibility from FY27 and strong shareholder returns FY27 Guidance Dividends and buybacks are a core capital allocation priority • 3-5% revenue growth • Target dividend payout ratio of 35 -40% • 11.0-11.5% profit margin • Share buyback extended at £100m p.a
Slide 18: Strategic outlook
Strategic outlook Steve Wadey Group Chief Executive Officer 18 Preliminary results for year ended 31 March 2026 | 21 May 2026 | ©
Slide 19: Our role in modern warfare today
Our role in modern warfare today Aligned to structural trends shaping defence and security ‘Great power’ competition Increasing threats Translates into increasing demand • Warfighting readiness at pace • New platforms and technologies • Upgrades of existing platforms We deliver trusted sovereign cap
Slide 20: What we do – and why it matters
What we do – and why it matters A unique, integrated defence and technology services company Engineering for complex systems Test & evaluate defence capabilities Engineering Training Services Test & Aircraft, ships, vehicles, sensors, weapons, mission systems Land, sea, air, cyber and space ranges a
Slide 21: Our “right to win”
Our “right to win” High - barrier capabilities embedded in long - term programmes Competitive advantage Customer positioning Strategic focus • Critical and unique national • Reduced customer risk by Market infrastructure integrating across lifecycle New development e.g. Europe • Deep technical skill
Slide 22: Delivering mission critical programmes
22 Delivering mission critical programmes Proven capabilities at scale, delivering competitive advantage Engineering Services Mission Support & Operations Accelerating operational outcomes Protecting platforms with mission data • Getting the right capabilities into • Actionable intelligence critical
Slide 23: Delivering national security priorities
23 Delivering national security priorities Proven capabilities advancing operational edge Test & Training Research & Development Responding to growing T&E demand Delivering disruptive laser technologies • Specialist T&E critical to delivering • Game -changing capability for warfighting readiness cou
Slide 24: Driving sustainable growth
Driving sustainable growth Major programmes provide multi - year revenue visibility Core and growth programmes Visibility Revenue trend 1. Lasers: disruptive laser weapon technologies Need for cutting - 2. WSRF: next generation weapons research edge technologies 3. UK/export: mission data with UK an
Slide 25: Summary
Summary Steve Wadey Group Chief Executive Officer 25 Preliminary results for year ended 31 March 2026 | 21 May 2026 | ©
Slide 26: Summary and guidance
Summary and guidance Foundations set for sustainable growth • Resilient performance in more challenging markets • Restructured the business, US options under active review FY27 guidance • Delivered higher -quality earnings and strong cash conversion • 3-5% revenue growth • 11.0-11.5% operating margi
Slide 27: Commercial in confidence
COMMERCIAL IN CONFIDENCE 27 Preliminary results for year ended 31 March 2026 | 21 May 2026 | © COMMERCIAL IN CONFIDENCE
Slide 28: Appendix
Appendix 28 Preliminary results for year ended 31 March 2026 | 21 May 2026 | ©
Slide 29: The QinetiQ investment case
The QinetiQ investment case Positioned for sustainable growth and strong shareholder returns Exposure to Market - leading Resilient business Disciplined capital structural defence positions in critical model with strong margins, allocation with strong investment growth defence capabilities ROCE and
Slide 30: Company strategy
Company strategy Driving sustainable growth Purpose: Protecting lives by serving the national security interests of our customers Invest in core Grow in core Expand across Drive innovation and capabilities markets markets partnering High - value and differentiated Enable critical national priorities
Slide 31: Glossary
Glossary Term Definition Term Definition B2B Book - to - Bill OCC Organic Constant Currency CAGR Compound Annual Growth Rate PPTS Percentage Points DOGE Department of Government Efficiency RDEC Research and Development Expenditure Credit DoW Department of War RHM Rheinmetall EBITDA Earnings Before I
Slide 32: Definitions of alternative performance measures
Definitions of alternative performance measures Underlying performance is stated before: • Amortisation of intangibles arising from acquisitions • Pension net finance income • Gains/(losses) on disposal of businesses, investments and property • Trans action, integration and one - off remuneration co
Slide 33: Additional technical guidance
Additional technical guidance FY26 FY27 Underlying net finance expense¹ £17.6m Effective tax rate¹ 15.9% Tax cash outflow £44.4m Capital expenditure £72.5m Leverage 0.5x ROCE 34% FX USD:GBP 1.34 1 Illustrative tax rate to reflect RDEC credit included in the tax line (to be used on Underlying Operati
Slide 34: Revenue by customer and country
Revenue by customer and country Revenue by customer (%) Revenue by destination country (%) FY26 FY25 FY26 FY25 £1,923m £1,932m £1,923m £1,932m % % % % MOD 60% MOD 57% UK 74% UK 68% DoW 10% DoW 9% US 15% US 18% Government agencies 15% Government agencies 20% Australia 5% Australia 8% Defence Other 13
Slide 35: Income statement including specific adjusting items
Income statement including specific adjusting items FY26 FY25 £m £m Operating profit from segments 217.9 185.4 RDEC Income 29.3 30.0 Underlying operating profit before tax¹ 247.2 215.4 Amortisation of intangible assets arising from acquisitions (23.1) (24.2) Digital investment (23.6) (20.8) Acquisit
Slide 36: Impact of foreign exchange translation
Impact of foreign exchange translation FY26 Restated FY26 FX FY26 FX FY26 FY25 at FY25 rates headwind headwind £m £m £m £m % Orders 1,864.0 1,954.8 1,881.6 (17.6) (0.9%) Revenue 1,922.6 1,931.6 1,941.4 (18.8) (1.0%) Underlying operating profit¹ 217.9 185.4 218.6 (0.7) (0.4%) • Key driver for FX chan
Slide 37: Understanding our different underlying profit and tax rates
Understanding our different underlying profit and tax rates FY26 FY25 £m £m Operating profit from segments 217.9 185.4 RDEC income 29.3 30.0 Underlying operating profit¹ 247.2 215.4 Underlying tax charge¹ 61.1 51.6 Tax income on other specific adjusting items (13.5) 27.8 Headline tax charge 47.6 79.
Slide 38: Underlying earnings per share (pence)
Underlying earnings per share (pence) FY25 Change in Operating profit RDEC¹ Net finance Effective tax rate FX¹ FY26 Underlying number of from segments¹ expense¹ Underlying EPS shares EPS 1 Post - tax 38 Preliminary results for year ended 31 March 2026 | 21 May 2026 | ©
Slide 39: Cash conversion
Cash conversion FY26 FY25 £m £m Operating profit from segments 217.9 185.4 Underlying RDEC income¹ 29.3 30.0 Underlying operating profit¹ 247.2 215.4 Depreciation and amortisation 96.5 86.3 Underlying EBITDA¹ 343.7 301.7 Underlying changes in working capital¹ (20.2) 6.6 Underlying profit on disposal
Slide 40: Movements in net debt
Movements in net debt FY26 FY25 £m £m Free cash flow 159.3 112.9 Dividends (48.7) (47.9) Disposal of business and acquisitions 17.9 - Net increase in lease obligations (7.3) (50.8) Purchase of own shares (146.9) (108.9) Other (including FX & leases) (0.2) 4.2 Change in net debt (25.9) (90.5) Opening
Slide 41: Balance sheet
Balance sheet FY26 FY25 £m £m Goodwill 236.9 249.8 Intangible assets 249.4 293.9 Property, plant and equipment 444.6 473.3 Working capital (126.6) (146.8) Net pension asset (net of deferred tax) 36.5 24.8 Other assets and liabilities (128.7) (135.3) Net debt (159.1) (133.2) Net assets 553.0 626.5 41
Slide 42: Net pension asset
Net pension asset FY26 FY25 £m £m Equities 7.5 11.2 LDI investment 223.3 351.1 Asset backed security investments 118.4 75.0 Bonds 394.2 326.7 Cash and cash equivalents 9.8 46.1 Derivatives (2.4) 10.9 Insurance buy-in policies 457.2 450.7 Borrowings - (95.0) Market value of assets 1,208.0 1,176.7 Pre
Slide 43: Share buy-back programme
Share buy - back programme - £100m share buy -back programme announced on the 16 January 2024 completed in February 2025 th - £50m additional share buy -back programme announced on the 14 November 2024 completed in May 2025 th - £200m share buy -back programme announced on the 17 March 2025 is in pr
Slide 44: This presentation contains the following imagery
This presentation contains the following imagery: Slide 22 (Image 1: UK MOD © Crown copyright 2020 ), (Image 3: UK MOD © Crown copyright 2021 ), (Image 4: UK MOD © Crown copyright 2024 ), Slide 6 ( Image 3: UK MOD © Crown Copyright 2019), (Image 4: US Customs and Border Protection 2016), Slide 23 (I