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Melrose (GB:MRO)
LSE:MRO
Earnings Data
Report Date
Jul 31, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
16.6Last Year’s EPS
11.9Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Mar 06, 2025
|% Change Since: -22.50%
|Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment|Positive
The earnings call highlighted a strong performance in the Engines division and overall profit growth, alongside significant improvements in workplace safety and cash flow projections. However, ongoing supply chain challenges, FX headwinds, and tariff impacts pose notable risks to future performance. The company has set ambitious five-year targets and appears confident in overcoming these challenges to achieve higher revenues and margins.Company Guidance
During the Melrose 2024 Results call, various metrics and targets were discussed, highlighting the company's strong performance and future outlook. In 2024, Melrose reported a 42% increase in profit to £540 million, despite lower-than-expected revenue growth due to reduced production rates. The company achieved an 80% reduction in lost time accidents and improved quality, alongside a 400 basis point increase in margins to 15.6%. For 2025, Melrose is guiding revenue between £3,550 million and £3,700 million, with an operating profit ranging from £680 million to £720 million. Additionally, the company aims for a high single-digit CAGR in revenue, targeting £5 billion by 2029, with operating margins exceeding 24% and free cash flow of £600 million post interest and tax. The Engines division performed robustly with a 26% revenue growth, while the Structures division saw a more modest 3% growth. The company also completed a £500 million share buyback program and commenced a £250 million program, with net debt at £1,321 million and leverage at 1.9 times. As part of its five-year targets, Melrose projects a 17% plus CAGR in operating profit and a greater than 20% CAGR in EPS, driven by volume, mix effects, and business improvement initiatives.Profit Growth in Engines Division
The Engines division achieved a 26% revenue growth, with aftermarket revenue up 32% and operating profit growing 40% to £422 million. Margins reached 28.9%, surpassing the 2025 target of 28% one year early.
Overall Revenue and Profit Increase
Group revenue grew 11% on a like-for-like basis, driven by the Engines division. Operating profit increased by 42% to £540 million, and EPS grew by 45% to 26.4p.
Reduction in Lost Time Accidents
An 80% reduction in lost time accidents was achieved in 2024, showing a significant improvement in workplace safety.
Substantial Free Cash Flow Expected
2025 is expected to see more than £100 million in positive free cash flow post-interest and tax, marking an inflection point for the company.
Five-Year Targets for Revenue and Margin Expansion
High single-digit CAGR is targeted, leading to £5 billion in revenue by 2029, with margins expected to expand to 24% plus.
Successful Portfolio Rationalization
The company completed the sale of three non-core businesses, including two to Boeing, as part of its portfolio rationalization.
Growth in Defense Sector
Defense revenue grew by 7%, with customer investment secured to double F-35 Canopy production capacity.
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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
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GB:MRO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Mar 06, 2025 | 680.00p | 556.40p | -18.18% |
| Aug 01, 2024 | 586.41p | 512.91p | -12.53% |
| Mar 07, 2024 | 626.15p | 611.69p | -2.31% |
| Sep 07, 2023 | 502.78p | 530.64p | +5.54% |
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.
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FAQ
When does Melrose (GB:MRO) report earnings?
Melrose (GB:MRO) is schdueled to report earning on Jul 31, 2025, TBA Not Confirmed.
What is Melrose (GB:MRO) earnings time?
Melrose (GB:MRO) earnings time is at Jul 31, 2025, TBA Not 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 2025 (Q2) is 16.6.
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