Melrose Industries Confirms Full-Year Guidance Amid Strong Revenue Growth

Melrose Industries PLC (LON: MRO) has released a trading update for the four months from July 1, 2025, to October 31, 2025, confirming its full-year guidance.

The report highlights a period of robust revenue growth, driven primarily by its Engines division, while maintaining expectations for profitability and cash flow.

Revenue: Group revenue increased by 14%, demonstrating strong performance across its core segments. The Engines division led the charge with a 28% increase, while Structures grew by 5%.

Profit & Margins: Adjusted operating profit saw a significant rise compared to the same period last year, aligning with the company's internal projections. Specific profit figures were not disclosed in this trading update, but will be highlighted in the full year accounts.

Cash & Balance Sheet: Melrose anticipates free cash flow generation exceeding £100 million for the full year, after accounting for interest and tax payments.

The Engines division experienced exceptional growth in original equipment (OE), up 35%, fueled by the RRSP portfolio across narrowbody and widebody aircraft platforms. The aftermarket segment also rebounded strongly, growing by 22%, including a resurgence in the parts repair business.

Structures experienced a more modest revenue increase of 5%, with defence showing encouraging growth due to strong demand and targeted business improvements. The civil side of the Structures business was hampered by customer supply chain disruptions.

Driver Breakdown:

• OE Production Ramp-Up: Record backlogs in civil aerospace are driving increased OE production rates.
• Aftermarket Recovery: Air traffic growth and low retirement rates are supporting the aftermarket segment.
• Defence Spending Surge: Geopolitical uncertainty is fueling increased defence spending, creating new growth opportunities.

CEO Peter Dilnot stated, “We have delivered another strong performance during this transformational year with continued positive momentum in both our civil and defence businesses,” reinforcing the company’s focus on ramping up production and delivering for customers.

Melrose has reaffirmed its financial outlook for the full year, projecting revenue between £3.425 billion and £3.575 billion. Adjusted operating profit (post PLC costs of £30 million) is expected to fall within the range of £620 million to £650 million. The guidance assumes an average exchange rate of US$1.335.

The company's full-year results for 2025 will be published on Friday, February 27, 2026. This will provide markets with a more detailed look into the company's profitability, margins and strategic outlook.