Melrose Industries PLC (LSE:MRO) reported a strong trading performance for the four months to October 2025, posting a 14% rise in group revenue. The Engines division led the charge with a 28% revenue increase, supported by solid demand in both original equipment and aftermarket services. The Structures division also registered growth, particularly across defense programs, though civil aerospace continued to face supply chain pressures. Despite these challenges, the company reaffirmed its full-year guidance and remains focused on supporting elevated customer demand amid broader industry expansion and shifting geopolitical priorities.
While Melrose’s financial outlook is clouded by pressured cash flows and a recent decline in revenue metrics, upbeat technical indicators point to potential share price strength ahead. The company’s valuation appears balanced, with a mid-range P/E ratio, though a modest dividend yield offers limited appeal for income-driven investors.
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Melrose Industries PLC is a key player in the aerospace and defense sector, supplying advanced engine technologies and structural components for major civil and military aircraft platforms. The company leverages long-standing positions on leading programs and differentiated engineering capabilities to support its growth strategy.
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