AGM TRADING UPDATE

29 April 2026

MELROSE INDUSTRIES PLC - AGM TRADING UPDATE

Ahead of its AGM today, Melrose Industries PLC ("Melrose"), a world-leading global aerospace and defence business, announces a trading update for the first quarter ended 31 March 2026 (the "Period"). All growth rates are stated at constant currency.

First quarter trading

Melrose has made a good start to the year, with a strong financial performance in the first quarter, alongside continued operational and commercial progress. Group revenue grew 11%, reflecting strong progress in Engines, up 20%, and Airframes up 4%. The combination of top line growth and margin progression resulted in adjusted operating profit for the Group and both divisions being well ahead of the same period last year.

Engines

The performance in Engines was driven by both OE and aftermarket with similar levels of growth in the Period in both segments. Within our RRSP portfolio, OE growth was particularly strong largely driven by deliveries for newer engines. In the aftermarket, all parts of the division delivered good growth with a particularly strong performance in our repairs and military businesses. 

Airframes

Within Airframes, Defence continues to perform well with double digit growth in the Period driven by our global portfolio. This was partially offset by Civil, where sales were slightly ahead of the comparative period, with good growth across business jets and widebody offset by lower narrowbody volumes, with the latter consistent with the broader market environment. 

Group net debt and free cash flow were in line with our expectations.

Middle East

The Group has no operating footprint in the Middle East and minimal direct supply chain exposure. While our hedging strategy for utility costs means the Group is well protected in 2026 from increases in energy prices, we are seeing some inflationary pressures in the form of higher freight costs. The potential impact on civil flying hours from reduced jet fuel availability and higher prices is uncertain, and will be dependent on the duration of the conflict.

Outlook for full year 2026

We continue to monitor and manage impacts from the Middle East, working closely with our customers and suppliers. Our guidance for the full year, which assumes no further material impact from the conflict, remains unchanged:

· Revenue of £3.75 billion to £3.95 billion

· Adjusted operating profit of £700 million to £750 million, reflecting an adjusted operating margin of c.19% at the mid-point

· Free cash flow generation of £150 million to £200 million (after interest and tax)

· In line with historical and industry seasonality, profit and cash will be second half weighted

· Guidance based on US$ = 1.37 average exchange rate

Melrose operates in end markets underpinned by attractive fundamentals, with proprietary technologies and established positions on all the world's leading aircraft. We have seen positive momentum in the first quarter and are well placed to deliver further growth and increased free cash flow in 2026 and the years ahead.

Melrose will publish its interim results for the first half ending 30 June 2026 on Friday 31 July 2026.

Enquiries:

Investor Relations:

Mat Wootton:

+44 (0) 7483 961 233, [email protected]

Media:

Simon Sporborg, Tom Pigott / Brunswick:

+44 (0) 207 404 5959, [email protected]