London, January 19, 2026, 13:57 GMT — Regular session.
- QinetiQ shares rise after securing a £205 million, five-year RAF Typhoon support contract extension
- The UK defence ministry says the deal backs 250 jobs, while QinetiQ aims to invest £10 million in digital and AI.
- BlackRock has surpassed the 5% ownership mark, according to a recent filing; traders await Tuesday’s update
QinetiQ’s shares climbed Monday following a £205 million contract extension to continue engineering support for the RAF’s Typhoon fighter jets. At 1343 GMT, QinetiQ (QQ.L) stock was trading 2.6% higher at 529p, pushing its year-to-date gains to roughly 21%. (MarketScreener)
The defence ministry announced a five-year deal set to preserve 250 skilled jobs across the UK and keep aircraft mission-ready. The contract covers airworthiness—the inspections and approvals that ensure aircraft safety—and includes engineering support for the European Common Radar System (ECRS) Mk2 radar upgrade. Ministers highlighted plans to raise defence spending to 2.6% of GDP starting in 2027, maintaining focus on defence suppliers. (Gov)
That’s key for QinetiQ, since steady revenue often comes from long-term government contracts. But it’s the flow of new deals that really shifts the stock. Traders will be watching closely to see if Monday’s agreement is just a one-off headline or signals a boost in the pipeline.
QinetiQ announced it will use digital engineering and advanced AI to speed up and reduce the cost of making Typhoons mission-ready, committing £10 million to integrate these new technologies. The effort will take place under the QinetiQ-led Aurora Engineering Delivery Partnership, which includes Atkins, BMT, Frazer-Nash, KBR, and over 380 other companies. CEO Steve Wadey emphasized the group’s commitment to “backing UK businesses” as it modernizes its delivery approach. (Qinetiq)
Defence Equipment and Support (DE&S), the defence ministry’s procurement arm, confirmed the contract covers support for the Typhoon capability development and integration programme, along with quick responses to urgent issues linked to UK operational commitments. The five-year agreement sustains 250 jobs nationwide, including six small and medium-sized enterprises (SMEs). Lyndon Hoyle, DE&S Typhoon team leader, described the extension as vital for maintaining “expert technical support” to keep the fleet both safe and mission-ready. (Defence Equipment & Support)
In a separate filing, BlackRock, Inc. revealed it has surpassed the 5% ownership mark in QinetiQ. The asset manager holds 4.65% of voting rights directly through shares, with an additional 0.35% coming from financial instruments like securities lending and CFDs. This threshold was crossed on Jan. 14, with QinetiQ receiving formal notification on Jan. 16. (Investegate)
Shares in other UK defence firms also edged higher, with BAE Systems climbing roughly 1.0% and Babcock International gaining around 0.6%, MarketScreener data showed. (MarketScreener)
Contract extensions rarely boost earnings immediately. The additional work stretches across five years and depends on steady defence budgets plus smooth execution. Any hiccup in delivery or rising costs from digital rollouts could still squeeze margins.
Investors are eyeing QinetiQ’s third-quarter trading update set for Jan. 20 to gauge order flow and assess any impact from the Typhoon contract on the near term. (Qinetiq)
