Melrose Industries PLC released a trading update for the period of July 1 to October 31, 2024, reporting a 7% year-over-year revenue increase. The Engines division drove this growth with a 17% revenue increase, attributed to a 32% boost in aftermarket business, particularly in defense. Despite constraints in OE volume growth due to supply chain issues, the division is well-positioned for future industry ramp-up. The Structures division experienced a more modest 1% revenue growth, impacted by the exit of non-core work, customer destocking, and supply chain challenges.
The Groups adjusted operating profit continues to grow, and end-market demand remains positive. Melrose reaffirms its full-year adjusted operating profit guidance of ยฃ550-ยฃ570 million and expects net debt to align with current expectations. For 2025, despite ongoing supply chain challenges, Melrose anticipates strong trading progress with an adjusted operating profit target of ยฃ700 million. This growth is expected to be driven by the Engines divisions strong aftermarket performance.
The Group foresees a significant improvement in its cash flow position in 2025 and beyond, resulting from restructuring program completions, resolution of GTF powder metal issues, and the generation of cash from RRSPs. Melroses CEO, Peter Dilnot, expresses confidence in the companys capabilities, technology leadership, and unique position in the aircraft and engine industries, anticipating substantial value creation in the future.
Note: The data provided is limited to the information available in the text. The table compares the financial and debt position of Melrose Industries PLC for the first four months of 2024 (July 1, 2024, to October 31, 2024) with the previous year (2023). The numbers are calculated at a constant currency rate of USD 1.25: ยฃ1 and include adjustments for disposals made in the first half of 2024 and like-for-like transfers between divisions.