Defence giant QinetiQ hits record as US military fires up

Qinetiq shares hit a record high on Wednesday after signalling that US military spending is on the up, reversing a long run of decline post-Iraq and Afghanistan.

The group’s quarterly international revenues were “slightly ahead” of last year thanks to higher US orders, although the company said it still needs to ship the products.

The shares today rose 3.6%, 11p, to 289p before falling back to 278p.

The US has shown signs of resurgent spending over the past 12 months as part of its so-called third offset strategy, a doctrine launched by former secretary of defence Chuck Hagel to outflank rival militaries by developing better technology.

Demand for QinetiQ’s remote-controlled military robots, as seen in Hollywood Oscar winner the Hurt Locker and used to search for the Boston bombers, has been a main beneficiary as the US Department of Defence tries to keep soldiers out of harm’s way.

The launch of the US Navy’s next-generation aircraft carriers, named after former Presidents like Gerald Ford, has also driven demand for its aircraft launch systems.

QinetiQ’s US division is considered a prime candidate to benefit from any military tech developments as it is based in Massachusetts, near the intellectual hubs of MIT and Harvard.