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Aerospace firm Melrose Industries PLC on Friday said it will buy back £175 million worth of shares in the next year, after ‘another strong performance’, which saw it beat profit consensus. Nonetheless, the stock slumped 14% to 550.20 pence, the worst FTSE 100 performer. Adjusted diluted earnings per share shot up 25% to 32.1p in 2025 from 26.4p in 2024, topping consensus of 31.6p. Melrose swung to a pretax profit of £468 million, from a loss of £106 million. Revenue improved 3.5% to £3.59 billion from £3.47 billion, topping consensus of £3.50 billion. On a like-for-like basis, revenue rose 8%. Adjusted operating profit surged 20% to £647 million, climbing 23% at constant currency. ‘Melrose delivered another strong performance in 2025. Significant profit growth was driven by increased Engines and Defence demand, together with the positive impact of our multi-year transformation programme reading through. We generated £125 million of free cash flow, representing an inflection point for the group, with substantial further increases in cash generation to come. We have positive momentum and are well-positioned to benefit from expected production ramp-ups and ongoing aftermarket expansion. We are therefore confident of further growth in 2026 and achieving our 2029 targets,’ Chief Executive Officer Peter Dilnot said. For 2026, it expects an adjusted operating profit outcome between £700 million to £750 million, at best growth of 16%, so slowing from 2025. It sees revenue between £3.75 billion to £3.95 billion, representing like-for-like growth of 10% at the mid-point, sharper than 2025’s like-for-like top-line hike of 8%. UBS said the profit biew was slightly below Visible Alpha consensus of £754 million. Birmingham-based Melrose said its guidance ‘does not factor any impact from any new trade restrictions or tariffs’. Melrose lifted its final dividend by 20% to 4.8 pence per share. The total dividend for 2025 was also up 20% to 7.2p In addition, it said: ‘At the end of 2025, we had completed £192 million of our £250 million 18-month share buyback programme and remain on track to complete the remainder by the end of March 2026. Today we are announcing a new share buyback programme of £175 million to be completed by the end of March 2027.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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