Melrose Industries Q1 revenues up 11pc, maintains FY guidance

(Sharecast News) - Aerospace firm Melrose Industries said on Wednesday that it had made a solid start to the year, reporting a strong first‑quarter performance ahead of its annual general meeting as both its engines and airframes divisions delivered further operational and commercial progress. Melrose said group revenues rose 11% at constant currency in the three months ended 31 March, driven by a 20% increase in engines and a 4% rise in airframes. Melrose also said the combination of top‑line growth and improving margins left adjusted operating profits for the overall group "well ahead" of the prior‑year period.

The FTSE 100-listed firm's engines business saw similar levels of growth across original equipment and aftermarket, with newer‑engine deliveries supporting original equipment performance and repairs and military activity underpinning aftermarket gains. In airframes, defence posted double‑digit growth across its global portfolio, partly offset by a more mixed civil market, where stronger business‑jet and widebody demand was tempered by lower narrowbody volumes.

Net debt and free cash flow were in line with expectations.

Melrose noted that it had minimal direct exposure to the Middle East, though it noted some inflationary pressure from higher freight costs and uncertainty around civil flying hours if jet‑fuel availability tightens.

Looking forward, Melrose left its full‑year guidance unchanged, with the firm continuing to expect FY26 revenues of £3.75bn to £3.95bn, adjusted operating profits of £700m to £750m, free cash flow of £150m to £200m and second‑half‑weighted profit and cash generation.

As of 0825 BST, Melrose shares were down 1.43% at 481.60p.

Reporting by Iain Gilbert at Sharecast.com

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