Melrose Industries PLC (LSE:MRO, OTC:MLSPF) has reported strong growth for 2025, with revenue rising 8% to £3.59 billion for the year ended 31 December, and announced a dividend increase alongside a new £175 million share buyback programme. Despite the positive results, the company’s shares fell 13% to 556p.
Adjusted operating profit rose 23% to £647 million, lifting the adjusted operating margin by 240 basis points to 18%. Statutory operating profit in the aerospace and defence business came in at £600 million, compared with a £4 million loss in 2024.
Adjusted profit before tax increased 21% to £515 million, while statutory profit before tax was £468 million versus a £106 million loss the previous year. Adjusted diluted EPS rose 25% to 32.1p, with statutory EPS at 29p, up from a 3.7p loss in 2024.
Free cash flow after interest and tax totalled £125 million, up £199 million year-on-year, while net debt stood at £1.41 billion, representing leverage of 1.8x. The board has proposed a final dividend of 4.8p per share, taking the full-year dividend to 7.2p, up 20% on 2024.
Chief executive Peter Dilnot said: “Melrose delivered another strong performance in 2025. Free cash flow reached an inflection point, and we are well-positioned for further growth in 2026 and to meet our 2029 targets.”
Engines revenue rose 15% to £1.63 billion, with adjusted operating profit up 27% to £520 million, while Airframes revenue grew 3% to £1.96 billion, with adjusted operating profit increasing 10% to £156 million.
For 2026, Melrose expects revenue of £3.75–£3.95 billion, adjusted operating profit of £700–£750 million, and free cash flow of £150–£200 million, weighted to the second half.
-- Updated to reflect share price decline --