QinetiQ Group plc (QQ.L)
A £2.6 billion British defence and security powerhouse born from the old government research labs, keeping the nation's tech ahead of the curve.
Is QinetiQ Group plc a good stock for a UK beginner?
The honest version: A £2.6 billion British defence and security powerhouse born from the old government research labs, keeping the nation's tech ahead of the curve.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Decades of increased global defence spending flowing straight to the bottom line
Major shifts in government defence priorities or severe budget cuts
What does QinetiQ Group plc do?
This British defence titan tests, builds, and advises on cutting-edge military technology, earning its crust through long-term government contracts. It makes its money by solving complex engineering puzzles for armed forces, from radar systems to cyber defence. The crucial thing to keep an eye on is how smoothly its order book turns into actual cash in the bank.
On our factor screen it looks strongest on income and momentum, and weakest on value.
- ✓Pays a dividend - about 2.2% a year
- ✓Growing - revenue up about 4% over the year
- ✓Strong return on shareholder money (ROE 18%)
- Deep roots and trusted relationships with the UK Ministry of Defence
- Solid return on equity of 18.2% showing efficient capital use
- Lower market volatility shown by a gentle beta of 0.3
- Heavy reliance on government spending decisions and political cycles
- Potential for costly overruns on fixed-price engineering contracts
- Slowing organic revenue growth if contract wins dry up
What do QinetiQ Group plc's numbers mean?
Does QinetiQ Group plc pay a dividend?
Yes - QinetiQ Group plc currently pays a dividend of about 2.2% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
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Masco CorporationWhat are the scenarios for QinetiQ Group plc?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of QinetiQ Group plc?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Deep roots and trusted relationships with the UK Ministry of Defence
- Solid return on equity of 18.2% showing efficient capital use
- Lower market volatility shown by a gentle beta of 0.3
- Forward earnings multiple is notably lower than the trailing one
- Modest net profit margin of 5.6%
- Relatively low gross margin of 16.4% due to the nature of complex contracting
- Revenue growth is currently humming along at a slow 3.8%
- Heavy reliance on government spending decisions and political cycles
- Potential for costly overruns on fixed-price engineering contracts
- Slowing organic revenue growth if contract wins dry up
The write-up's own warning lights — if these start happening, the case above changes.
- A sudden and sustained drop in government defence budgets
- A sharp, unexpected deterioration in operating margins
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.