Melrose Industries (MRO) Trading Update summary

Trading performance and financials

• Group revenue rose 6% year-on-year in Q1 2025, with Engines up 9% and Structures up 4%.

• Adjusted operating profit was well ahead of the prior year, driven by restructuring and business improvements.

• Net debt and free cash flow at period end were in line with expectations.

Segment highlights

• Engines benefited from strong original equipment volumes and favorable mix, with improved operating margins.

• Aftermarket growth in Engines was partially offset by a strong prior year in military.

• Structures saw revenue growth and margin improvement, despite sector-wide supply chain constraints.

Tariff impact and mitigation

• Recent tariffs created complexity, but direct exposure has been evaluated and mitigation measures are in place.

• Actions include using drawback mechanisms, supply chain adjustments, and negotiations with customers and suppliers.

• Ongoing monitoring of the tariff situation will continue, with readiness to respond to further changes.