|
Melrose Industries PLC on Wednesday said it has moved swiftly to mitigate the impact of US trade tariffs, as it reported a positive start to the year. The Birmingham, England-based aerospace firm said revenue was up 6% in the first quarter of 2025 compared to a year prior, with strong progress in both Engines, up 9%, and Structures, up 4%. Melrose said adjusted operating profit was well ahead of the same period last year, reflecting restructuring and business improvement actions, while net debt at the end of March and free cash flow during the quarter were in line with expectations. Melrose shares were up 0.3% to 433.13 pence each in London on Wednesday. Chief Executive Peter Dilnot will tell the Melrose annual general meeting on Wednesday that it has had ‘a good start to the year.’ Regarding tariffs, Dilnot said the introduction has created ‘additional complexity’ across the aerospace industry. He added Melrose has ‘acted swiftly’ to evaluate the potential effects and has a ‘path to successfully mitigate our identified direct exposure at current tariff levels’. The situation remains ‘fluid’, Dilnot said, adding, ‘we will continue to work closely with our customers and suppliers to respond as needed’. Nonetheless, Dilnot said he is ‘confident about delivering profitable growth and significantly increasing free cash flow in 2025 and in the years ahead.’ Melrose left guidance for the full year, which excludes the impact from tariffs or other trade restrictions, unchanged. The company expects revenue in a range of £3.55 billion to £3.70 billion, adjusted operating profit of £700 million and free cash flow generation of more than £100 million. In 2024, Melrose reported revenue of £3.47 billion, adjusted operating profit of £566 million, and a free cash outflow of £74 million. Melrose plans to report results for the first half ending June 30 on July 31. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
