Melrose Industries Raises Adjusted Operating Profit to £647 Million

The Tip Desk · March 23, 2026 · 2 min read

The aerospace and defence business reported a total annual dividend of 7.2 pence per share, representing growth of 20%.

Melrose Industries Plc, a global aerospace and defence business, reported adjusted operating profit of £647 million for the year ended 31 December 2025, up from £540 million in 2024. The company reported revenue of £3,589 million for the period, compared to £3,468 million the previous year.

Statutory results showed an operating profit of £600 million, reversing a loss of £4 million in 2024. Profit before tax reached £468 million, compared to a loss of £106 million in the prior year. Adjusted diluted earnings per share rose to 32.1 pence from 26.4 pence.

Performance in the first half of 2025 was characterized by a 29% increase in adjusted operating profit and revenue growth of 6% on a like-for-like basis. The company reported an adjusted operating margin of 18.0%, an increase of 380bps over the prior year. These results occurred despite supply chain challenges and the introduction of US tariffs at the start of the second quarter.

Cash generation improved as free cash flow for the full year was £125 million. For the six months ended 30 June 2025, free cash flow was £91 million higher than the comparative period. The company expects to deliver a free cash flow target of £600 million by 2029.

Shareholder returns included a final dividend of 4.8 pence per share, bringing the total annual dividend to 7.2 pence. The company completed £192 million of a £250 million share buyback programme by the end of 2025 and intends to finish the remainder by March 2026. Additionally, the company announced a new £175 million share buyback programme to be completed by March 2027.

For 2026, the company expects growth in sales, operating profit, and free cash flow, noting that cash generation is typically second-half weighted. Updated guidance for 2026 projects group revenue between £3,750 million and £3,950 million and adjusted operating profit between £700 million and £750 million. This outlook assumes an average exchange rate of GBP £ = US$1.37 and does not account for new trade restrictions or tariffs.