UK's Melrose H1 revenue, profit rises; £175 mln buyback paused

Melrose Industries

31/07/2026 07:17

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Overview
UK aerospace and defence group's H1 revenue rose 10% yr/yr, adjusted EBIT up 16%
Garden Grove facility incident reduced revenue and profit; £175 mln buyback paused
Interim dividend increased 13% to 2.7p per share

Outlook
Melrose expects 2026 revenue between £3,750 mln and £3,950 mln, excluding Garden Grove impact
Company sees 2026 adjusted operating profit of £700 mln to £750 mln, excluding Garden Grove impact
Garden Grove facility expected to operate at 50% capacity, reducing monthly revenue, profit and cash by £6 mln

Result Drivers
ENGINES GROWTH - Engines division revenue rose 19% with strong growth in both original equipment and aftermarket sales
LEAN OPERATING MODEL - Operational improvements and inventory management gains attributed to 'Brilliant Basics' lean operating model
GARDEN GROVE INCIDENT - Incident at Garden Grove facility reduced revenue and profit; partial production has resumed, with ongoing efforts to restore full capacity

Company press release: ID:nRSe6495Oa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
GBP 1.87 bln
 
H1 Adjusted EBIT
 
GBP 347 mln
 
H1 Dividend
 
GBP 0.027
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Melrose Industries PLC is GBp700.00, about 47.3% above its July 30 closing price of GBp475.20
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
July 30 - Rolls-Royce lifts outlook beyond forecast as all divisions power profit
July 30 - Britain's BAE Systems lifts 2026 outlook as defence orders soar
July 30 - MTU Aero Engines beats Q2 forecasts, raises 2026 cash flow outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)