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Melrose (GB:MRO)
LSE:MRO
Earnings Data
Report Date
Sep 03, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.19Last Year’s EPS
0.15Same Quarter Last Year
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call underscores strong execution: double-digit segment growth in Engines, meaningful margin expansion, positive free cash flow achieved, transformation largely complete, clear 2026 guidance and reiterated 2029 targets. Headwinds remain — supply chain and tariff risks, GTF cash drag until 2028, powder metal remediation costs, a site-level productivity issue and elevated factoring/inventory that temporarily trap cash. Management presented remediation plans and reiterated confidence in hitting long-term targets, and the volume of positive operational and financial developments outweighs the identified challenges.Company Guidance
Group Revenue and Profit Growth
Group revenue grew 8% like-for-like to GBP ~3.8bn; group operating profit increased 23% to GBP 647m; adjusted operating margin rose to 18% (up 240 bps year-on-year) and EPS increased 25% to 32.1p.
Positive Free Cash Flow Achieved
Delivered positive free cash flow post interest and tax of GBP 125m in 2025 (GBP 200m improvement vs prior year), surpassing the prior commitment of GBP 100m+ and marking an inflection point toward the 2029 cash targets.
Engines Division Outperformance
Engines revenue up 15% (OE +16%, aftermarket +14%), operating profit up 27% to GBP 520m, and division margin at 31.9%; strong RSP and repair momentum (RSP revenue growth ~20%, core RSP ~19%, variable consideration GBP 324m up 22%).
Airframes (Structures) Progress and Defense Strength
Airframes revenue grew 3% like-for-like, driven by defense (+15%); operating profit up 10% to GBP 156m and margin improved to 8% (from 7.2%); defense commercial wins (Anduril partnership, follow-on C-130J and Typhoon contracts) bolster backlog and future growth.
Operational and Safety Improvements
Completed multiyear transformation and footprint rationalization (from ~50 to ~30 sites); safety improved 32% in 2025, contributing to an ~80% reduction in accidents over three years; quality and productivity also improved, supporting margin expansion.
Capital Allocation and Shareholder Returns
Proposed final dividend 4.8p (full-year 7.2p, up 20%); announced new GBP 175m 12-month share buyback (to commence after completing existing GBP 250m program); returned >GBP 1bn to shareholders over last three years through buybacks and dividends.
2026 Financial Guidance and 2029 Targets
2026 guidance: revenue GBP 3.75–3.95bn (midpoint ~10% like-for-like growth), operating profit GBP 700–750m (midpoint ~16% growth, ~19% margin), free cash flow GBP 150–200m (midpoint GBP 175m). Long-term 2029 targets reiterated: ~GBP 5bn revenue, 24%+ margin (600 bps expansion), GBP 1.2bn operating profit and GBP 600m free cash flow.
Strategic Technology Momentum (Additive Fabrication & UAVs)
Additive fabrication progress and pipeline with OEMs (proprietary production approach, industrialisation underway); management confirmed additive contribution to 2029 plans (cited as on-track); growing involvement in military uncrewed vehicles with awards/partnerships (Sweden FMV, Anduril).
GB:MRO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
GB:MRO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 27, 2026 | 640.00p | 565.80p | -11.59% |
Aug 01, 2025 | 510.12p | 535.61p | +5.00% |
Mar 06, 2025 | 672.09p | 549.93p | -18.18% |
Aug 01, 2024 | 579.59p | 506.95p | -12.53% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Melrose (GB:MRO) report earnings?
Melrose (GB:MRO) is schdueled to report earning on Sep 03, 2026, Before Open (Confirmed).
What is Melrose (GB:MRO) earnings time?
Melrose (GB:MRO) earnings time is at Sep 03, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Melrose stock?
The P/E ratio of Melrose is N/A.
What is GB:MRO EPS forecast?
GB:MRO EPS forecast for the fiscal quarter 2026 (Q2) is 0.19.