Melrose Industries’ Shares (LON:MRO) Attempt Breakout On Solid H1

Melrose Industries shares (LON:MRO) have jumped 5.15% today as the aerospace manufacturer and parent of GKN Aerospace reported a solid first half, beating profit expectations, and slowing cash burn, all whilst reaffirming its full-year free cash flow target. 

The company reported a strong first half of 2025, with revenue up 6% on a like-for-like basis and adjusted operating profit surging 29% compared to the same period last year.

Adjusted operating margin improved significantly, reaching 18.0%, a 380 basis point increase, driven by progress in both its aerospace and defence divisions.

Free cash flow improved by £91 million year-over-year and the company reaffirmed its target of achieving £100+ million in free cash flow for 2025.

However, alongside the positive first-half results, Melrose revised its full-year guidance downwards.

Revenue is now projected to be between £3,425 million and £3,575 million, down from the previous range of £3,550 million to £3,700 million.

Adjusted operating profit is also expected to be lower, in the range of £620 million to £650 million, compared to the initial forecast of £650 million to £690 million.

“We have a clear strategy underpinned by attractive aerospace and defence markets, differentiated technology and established positions on the world's leading civil and defence aircraft. We are confident about delivering sustained increases in profit and cash flow in the years ahead and our free cash flow target of £600 million in 2029.”

Markets clearly like the print, with the gains on the day sitting in stark contrast to the broader indices, where the FTSE 100 is down 0.8%, with plenty more red names than green ones.

Maintaining momentum into the next trading week could bring a real run at the near term breakout above 540p, the resistance level that has held firm since the March pullback.