Melrose Industries plc published a transcript of its 2025 full-year results call, attended by Chief Executive Officer Peter Dilnot and Chief Financial Officer Matthew Gregory, with questions from analysts including Stifel, Goldman Sachs, UBS, Kepler Cheuvreux, Bank of America, Rothschild & Co Redburn and Morgan Stanley. Management said the group is executing its strategy and reported strong 2025 performance, with like-for-like revenue up 8%, operating profit up 23% to £647m, operating margin up 240 basis points to 18%, EPS up 25% to 32.1p, and free cash flow after interest and tax of £125m. “The key message today is that we’re executing our plan,” the Chief Executive Officer said, adding that delivering positive free cash flow marked “a really important inflexion point in our journey.” The Engines division led growth, with revenue up 15% and operating profit up 27% to £520m, supported by both OE and aftermarket demand and continued margin expansion to 31.9%. The Airframes division, renamed from Structures, grew 3% with Defence up 15% but Civil down 2% amid ongoing supply-chain constraints; operating profit rose 10% to £156m and margins improved to 8%. The CFO said profit and cash were “in line with our expectations,” and highlighted that restructuring programmes have concluded with “no significant cash costs in 2026.” Melrose guided 2026 revenue of £3.75bn to £3.95bn and operating profit of £700m to £750m, with free cash flow after interest and tax of £150m to £200m. It also announced a new £175m 12-month share buyback to start after completing the existing £250m programme, alongside a proposed final dividend of 4.8p per share, taking the full-year dividend to 7.2p, up 20%. Key discussion topics included the Pratt & Whitney GTF programme and powder metal issue, supply-chain disruption, working capital seasonality and customer settlements, receivables factoring, and progress on operational improvements and targeted growth areas such as additive fabrication and military uncrewed vehicles. The Chief Executive Officer reiterated confidence in the 2029 targets of 24% plus operating margin and £600m free cash flow, saying, “We know what the levers are and we also know what the trajectory is here.” The full transcript can be accessed through the link below.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Melrose Industries plc published the original content used to generate this news brief on February 27, 2026, and is solely responsible for the information contained therein.
