Melrose Industries PLC, a global aerospace and defense company, reported strong financial results for the year ended December 31, 2025, with revenue growth of 8% to £3.589 billion and adjusted operating profit up 23% to £647 million. The companys performance was driven by increased demand in the Engines and Defence segments, as well as the successful completion of a multi-year transformation program. Key highlights include
Revenue growth of 8% to £3.589 billion, with like-for-like growth of 8%
Adjusted operating profit up 23% to £647 million, with margins improving by 240 basis points to 18.0%
Free cash flow generation of £125 million, a significant improvement from the previous years outflow of £74 million
Completion of a multi-year transformation program, providing a strong foundation for future growth
Strong commercial progress, including key customer contract wins and new partnerships
Quality and productivity gains achieved in a complex operating environment
New share buyback program of £175 million announced
Increase in final dividend to 4.8p, taking the full-year dividend to 7.2p, a 20% increase
The companys Engines segment saw revenue growth of 15% to £1.632 billion, driven by strong performance in both original equipment and aftermarket sales. The Airframes segment, renamed from Structures, saw revenue growth of 3% to £1.957 billion, with strong performance in the Defence sub-segment.
Melroses CEO, Peter Dilnot, expressed confidence in the companys future prospects, stating that the company is well-positioned to benefit from expected production ramp-ups and ongoing aftermarket expansion. The company expects to deliver further growth in revenue, profit, and cash flow in 2026, with a clear path to achieving its 2029 targets.
In terms of financial metricsMelrose reported
Adjusted diluted EPS up 25% to 32.1 pence
Net debt of £1.407 billionwith leverage of 1.8x
Return on capital employed (ROCE) of 18.0%
The companys strong performance and positive outlook were reflected in its share price, which increased by 5% on the day of the announcement. Overall, Melrose Industries PLCs 2025 results demonstrate the companys successful transformation and strong positioning in the aerospace and defense industry, with a clear strategy for future growth and value creation.
| Metric | 2025 (£m) | 2024 (£m) | Change |
|---|---|---|---|
| Revenue | 3,589 | 3,468 | 8% increase |
| Operating Profit | 647 | 540 | 23% increase |
| Profit Before Tax | 515 | 438 | 21% increase |
| Free Cash Flow | 125 | (74) | £199m increase |
| Net Debt | 1,407 | 1,321 | £86m increase |
| Leverage (x) | 1.8 | 1.9 | 0.1x decrease |