Qinetiq, a military contractor assisting the Royal Marines, has reduced its revenue and profitability goals due to disruptions caused by the uncertainty in global geopolitics. The company attributes this downturn to a lack of new contract awards since January, as defense spending is being impacted by the hesitance of President Trump to support US allies.

The UK-based company's shares plummeted by 22%, resulting in a market value loss of over £500m. Qinetiq had already warned of decreased contract awards due to tight public spending and changes in government leadership in the UK and US. The recent instability has now extended globally as defense departments reassess their operations in response to US policies, resulting in delays and cancellations of contracts.

Qinetiq's US division has been heavily affected by contract delays at the Pentagon and a re-evaluation of requirements by international customers in light of US foreign policy changes. The company's revenue has been impacted, particularly affecting products like the Talon bomb disposal robot and the Spur, designed for use in combat zones.

The company anticipates a £70m loss due to challenging conditions in the US market and plans to restructure its American operations, incurring a £140m write-down. Some contracts of its intelligence arm in the UK have been placed on hold pending the government's defense spending review results, with revenue growth targets cut and profit margins adjusted. Despite these challenges, Qinetiq's UK defense division continues to perform well, relying on longer-term contracts for stability.