QinetiQ Group Plc (QQ.L), an aircraft engineering company, on Monday announced an extension to its share repurchase program of up to 200 million pounds over the next two years, once the ongoing 50 million tranche of its share repurchase is completed at the end of May.
The company expects a goodwill impairment charge of around 140 million pounds at the year-end due to the market backdrop and operational performance in the U.S. This is also due to a number of one-off exceptional, largely non-cash charges of around 35 to 40 million pounds mainly in the legacy U.S. operations.
QinetiQ commented, "Tough near-term trading conditions that we referred to in our third quarter trading update have persisted. This has affected short cycle work in our UK Intelligence and US Sectors resulting in further delays to a number of contract awards. In addition, recent geopolitical uncertainty has impacted our usual fourth quarter weighting to higher margin product sales from the US."
Looking ahead, for the full-year 2025, the Group now expects organic revenue growth of approximately 2 percent at an underlying margin of around 10 percent. Earlier, the company had expected to deliver high single-digit organic revenue growth at a stable margin.
For the full-year 2026, the Group anticipates revenue growth of 3 to 5 percent at margins of 11 to 12 percent.
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