Melrose Industries Reports H1 2026 Adjusted Operating Profit Growth

The Tip Desk · July 31, 2026 · 2 min read

The aerospace and defence group saw adjusted operating profit rise 16% to £347 million, though a chemical tank incident at its Garden Grove site impacted results.

Melrose Industries Plc reported adjusted results for the six months ended 30 June 2026, with revenue increasing 10% to £1,873 million and adjusted operating profit rising 16% to £347 million [3, 7]. Adjusted diluted EPS was 17.7 pence, compared to 15.1 pence in the same period last year. The Group's adjusted operating margin increased by 50 basis points to 18.5%.

Performance was split between two primary segments. The Engines division saw revenue grow 19% to £896 million with an adjusted operating profit of £303 million [3, 11]. The Airframes division reported revenue of £977 million, a 4% increase, while adjusted operating profit decreased slightly to £62 million [3, 13].

Results were affected by a chemical tank incident in May 2026 at the Garden Grove facility [3, 7]. Excluding this impact, Group revenue would have been £1,889 million and adjusted operating profit would have been £356 million. The company recognized £13 million in costs associated with the incident. Partial production has resumed at the site, and the company is working to restore full production in the second half of the year.

Free cash flow for the period was £13 million, an improvement of £67 million over the prior year [6, 7]. Net debt stood at £1,530 million as of 30 June 2026, up from £1,407 million at 31 December 2025. The company increased its interim dividend per share by 13% to 2.7 pence, but has paused its current £175 million share buyback programme pending clarification of the financial impact of the Garden Grove incident.

Looking ahead, Melrose stated that its full-year guidance remains unchanged, excluding the impact of the Garden Grove incident [1, 7]. For 2026, the Airframes division is expected to deliver revenue between £2,050 million and £2,150 million and adjusted operating profit between £170 million and £190 million, assuming an exchange rate of 1 GBP = US$1.37.