Melrose boosts adjusted operating profit by 29% in H1 2025, driven by aerospace momentum and transformation gains
LONDON: Melrose Industries PLC reported a robust first-half performance for 2025, with adjusted operating profit surging 29% and free cash flow improving by £91 million compared to the same period last year. The aerospace and defense company said its multi-year transformation program is nearing completion, driving margin expansion and operational efficiency.
Revenue for the six months ended June 30 reached £1.72 billion, up 6% on a like-for-like basis. Adjusted operating margin rose to 18.0%, a 380 basis point increase from the prior year. Statutory operating profit came in at £441 million, reversing a loss of £62 million in 2024.
CEO Peter Dilnot said the company is on track to deliver over £100 million in free cash flow this year and reaffirmed its target of £600 million by 2029.
“We delivered a strong performance in the first half with a 29% improvement in profit and cash flow significantly stronger than last year despite the backdrop of supply chain and tariff disruptions,” Dilnot said. “We are confident about delivering sustained increases in profit and cash flow in the years ahead.”
The Engines division posted 11% revenue growth to £781 million, with adjusted operating profit up 26% to £261 million. The Structures division saw 3% revenue growth to £939 million and a 32% increase in adjusted operating profit to £63 million.
Melrose also announced new long-term contracts with Pratt & Whitney, BAE Systems, and Lockheed Martin, and deepened its partnership with Sweden’s FMV for engine support.
The company declared an interim dividend of 2.4 pence per share, up 20% from last year. Net debt stood at £1.404 billion, with leverage at 2.0x.
Melrose updated its full-year guidance to reflect currency movements, projecting revenue between £3.425 billion and £3.575 billion and adjusted operating profit between £620 million and £650 million.
Governance updates included Chris Grigg assuming the role of Non-executive Chairman and Alison Goligher joining the board as Chair of the Remuneration Committee.