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Investing.com -- Defense-technology firm QinetiQ Group on Monday revised its revenue target for fiscal 2025 due to ongoing delays in contract awards.
The company also anticipates an impairment of approximately £140 million ($181.1 million) from its U.S. operations.
QinetiQ stated that it now predicts organic revenue growth for the year ending March 31 to be about 2%. This is a significant decrease from its previous guidance which predicted high single-digit growth.
The company also anticipates an underlying margin of around 10%, a positive cash conversion, and net debt levels that match those of the previous year.
The company attributes these changes to enduring challenging conditions in the short term. These challenges include delays in contract awards in both the U.K. and the U.S. QinetiQ also mentioned that geopolitical uncertainty negatively impacted its higher margin sales from the U.S. during the fourth quarter.
Looking further ahead to fiscal 2026, QinetiQ expects revenue growth to be within the range of 3% to 5% and margins to be between 11% and 12%.
In line with its capital allocation policy, QinetiQ announced that it has expanded its share buyback program. The company plans to buy back up to £200 million worth of shares over the next two years.
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