QinetiQ Group PLC (LSE:QQ.) said order intake continued to grow over the second quarter, leaving the defence firm on course to hit expectations for the year.
Following a good performance during the quarter, QinetiQ reported on Tuesday that organic revenue remained in line to grow by a high single-digit percentage over the year.
Order momentum continued to build over the period, with contracted revenue said to sit in line with the £840 million as seen at the half-year stage in 2023.
“We have delivered a good operational and financial performance in the quarter, and our services and products continue to be of high relevance and significant value to our customers in a heightened threat environment,” chief executive Steve Wadey said.
“Against a backdrop of political transition in our core markets, I am pleased that order intake momentum has been maintained, which underpins our long-term sustainable growth.”
QinetiQ highlighted a ten-year €284 million (£237 million) contract with the German armed forces for aerial training services, alongside a three-year British Army deal worth up to £150 million.
New navy and army contracts also saw QinetiQ enter the US market as a prime contractor for the first time, the company said.
Cash conversion remained consistent with historic levels at around 80%, QinetiQ added, while £62 million worth of a £100 million buyback was completed over the quarter.