# Melrose Industries delivers 14% revenue growth and strong profit momentum in Q4 trading update

- Link: https://www.directorstalkinterviews.com/melrose-industries-delivers-14-revenue-growth-and-strong-profit-momentum-in-q4-trading-update/4121226031
- Published: 2025-11-14T07:30:47+00:00
- Author: Amilia Stone

**[Melrose Industries PLC](https://www.directorstalkinterviews.com/ftse-company/melrose-industries/mro.l)**(
LON:MRO) has announced the following trading update for the four months from 1 July
2025 to 31 October 2025. Growth rates are calculated at constant currency and exclude
the impact of exited businesses^([1]).

> **Peter Dilnot, Chief Executive Officer of Melrose Industries said:**
> _“We have delivered another strong performance during this transformational year
> with continued positive momentum in both our civil and defence businesses. Our
> focus for the rest of the year remains on ramping up production and delivering
> for our customers. With strong demand, differentiated technologies and established
> positions on all the world’s leading aircraft, we are well placed to deliver growth
> and increasing free cash flow this year and into the future.”_

**Group performance**

Group revenue grew by 14%, with Engines up 28%, driven by a strong performance in
both OE and the aftermarket, and Structures up 5%. Adjusted operating profit was
significantly higher than the comparative period and in line with our expectations.

**End markets**

In civil aerospace, record backlogs are underpinning the OE production ramp. Air
traffic growth and low retirement rates continue to support the aftermarket. Geopolitical
uncertainty is driving a step change in defence spending, which is providing a number
of new growth opportunities for the Group. The UK/US and EU/US tariff agreements
have been welcomed by market participants, providing greater certainty for the civil
aerospace industry.

**Engines**

In Engines, OE growth was particularly strong, up 35%, driven by our RRSP portfolio
across both narrowbody and widebody platforms. Aftermarket grew by 22% and included
a return to robust growth for our parts repair business. Engines’ performance includes
continued momentum from the increase in OE production rates and the recovery from
tariff-related uncertainty and backlogs in the first half.  

Looking ahead, the division is well placed to meet the ongoing industry ramp-up 
from its established positions and to support our customers on new technologies 
and the next generation of engines.

**Structures**

Structures revenue was up 5%, ahead of the growth rate at the half year. We saw 
encouraging growth in Defence, reflecting strong demand coupled with our business
improvement actions and the work we have done on sustainable pricing across the 
business. The performance in Civil continued to be constrained by well-publicised
customer supply chain issues.

We are well positioned to support our OEM customers as build rates continue to grow
over the next few years to meet record backlogs in both civil and defence.

**Outlook and full year guidance**

During the remainder of the financial year, we will continue to focus on delivering
for our customers in what is the industry’s most significant trading period. Our
guidance for the full year remains unchanged:

| ·    | Revenue range of £3.425 billion to £3.575 billion | 
| ·    | Adjusted operating profit range (post PLC costs of £30 million) of £620 million to £650 million | 
| ·    | Free cash flow generation of £100+ million (after interest and tax) | 
| ·    | Guidance based on US$ = 1.335 average exchange rate^([2]); guidance continues to exclude the direct and indirect impact of any new or changed tariffs |

Melrose Industries will publish full year results for 2025 on Friday 27 February
2026.

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