- Melrose Industries
- 01 August 2025 08:26:36
Source: Sharecast
"We delivered a strong performance in the first half with a 29% improvement in profit and cash flow significantly stronger than last year despite the backdrop of supply chain and tariff disruptions," said chief executive Peter Dilnot.
Melrose reported an adjusted operating profit of £310m, up from £247m the year before, helped by a big improvement in operating margins to 18.0% from 14.2%. The consensus forecast was for a bottom-line figure closer to £299m.
The company said it made good margin progress in both its Engines and Structures division, as it was "successful in largely mitigating the direct impact of current tariffs".
Revenues were up 6% on last year on a like-for-like basis at £1.72bn, with 11% growth in Engines to £781m and 3% growth in Structures to £939m.
Looking ahead, the company kept its guidance on a constant-currency basis, though lowered forecasts slightly due to the strengthening of sterling against the US dollar.
Full-year revenues are now tipped to come in at between £3.43bn-3.58bn, down from £3.55bn-3.70bn previously, while the expected adjusted operating profit range has been cut to £620m-650m from £650m-690m.
"Our multi-year transformation programme will be completed by year end and the benefits are already reading through with more to come. 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," Dilnot said.
The stock was up 7.5% at 550.8p by 0815 BST.