Melrose Industries (MRO) Trading Update summary

Trading performance

• Revenue rose 7% year-on-year, with Engines up 17% and Structures up 1%, reflecting strong aftermarket growth and OE volume reductions.

• Adjusted operating profit continues to grow, aligning with expectations.

• Aftermarket business in Engines surged 32%, especially in defence, while OE growth remains constrained by supply chain issues.

Structures division and restructuring

• Structures revenue reflects planned exit of non-core work, customer destocking, and supply chain challenges.

• Defence repricing and business improvement actions are progressing as planned.

• Restructuring programmes are nearing completion, leading to a significant reduction in cash spend in 2025.

Outlook and guidance

• Full year adjusted operating profit expected at £550–£570 million, with net debt to end the year as anticipated.

• 2025 targets include adjusted operating profit of £700 million, led by strong aftermarket performance in Engines.

• Substantial free cash flow is expected in 2025, with further material growth beyond as restructuring completes and RRSPs generate cash.

• Longer-term financial targets will be provided at the full year results in March 2025.