14th Nov 2025 08:41
(Alliance News) - Melrose Industries PLC on Friday said geopolitical uncertainty is driving a step change in defence spending, leaving it well placed to deliver growth.
The Birmingham, England-based aerospace manufacturing company said group revenue grew by 14% in the four months to October 31, with Engines up 28%, driven by a strong performance in both original equipment and the aftermarket, and Structures up 5%.
Adjusted operating profit was significantly higher than the comparative period and in line with expectations, the firm said.
Shares in Melrose were up 0.6% at 632.60 pence each in London on Friday morning, while the wider FTSE 100 was down 1.1%.
In civil aerospace, record backlogs are underpinning the original equipment production ramp, Melrose said, while 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," Melrose added.
Original equipment growth was particularly strong in Engines, up 35%, while Aftermarket grew by 22% and included a return to robust growth for the parts repair business.
Structures revenue was up 5%, with encouraging growth in Defence, reflecting strong demand.
The performance in Civil continued to be constrained by well-publicised customer supply chain issues.
Chief Executive Officer Peter Dilnot said the 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."
Melrose continues to expect full-year revenue between GBP3.43 billion to GBP3.58 billion and adjusted operating profit of GBP620 million to GBP650 million compared to GBP3.47 billion and GBP540 million on-year.
The firm forecast free cash flow generation of more than GBP100 million compared to GBP52 million in 2024.
Melrose will publish full year results for 2025 on February 27, 2026.
By Jeremy Cutler, Alliance News reporter
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