Melrose reported full-year underlying revenue growth of 8% to £3.6bn (£3.5bn expected). The Engines division grew at the fastest pace, up 15%, driven by strong aftermarket demand. Airframes (renamed from Structures) revenue grew 3%.
Underlying operating profit rose 23% to £0.6bn (£0.6bn expected), driven by top line growth and improving margins.
Free cash flow improved from an outflow of £0.1bn to an inflow of £0.1bn. Net debt rose by £0.1bn to £1.4bn.
In 2026, revenue is expected to land between £3.75-3.95bn. Underlying operating profits are expected to be in the £0.70-0.75bn range, which was below market expectations.
A final dividend of 4.8p per share was announced, taking the full-year total to 7.2p, up 20%. A new £175mn share buyback programme was also announced.
The shares fell 13.5% in early trading.
Our view
HL view to follow.
Melrose key facts
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