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| 18.08.25 06:21:46 |
Herr Hachey tritt dem Aufsichtsrat von Melrose Industries als nicht-ausführender Vorstandmitglied bei. |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Okay, here's a condensed summary of the text followed by the German translation:
**Condensed Summary:**
Melrose Industries PLC has appointed Guy Hachey as a Non-Executive Director, effective immediately. Hachey, boasting over 30 years’ experience in aerospace, defense, and industrial sectors – previously holding leadership roles at Bombardier, Advent International, Hexcel, and Meggitt – will support Melrose's strategic execution. He holds an MBA and a Bachelor of Commerce degree from McGill University.
**German Translation:**
**LONDON – Melrose Industries PLC (LSE:MRO) hat am Montag Guy Hachey als Nicht-Vorstandsmitglied ernannt, mit sofortiger Wirkung.**
**Hachey bringt über 30 Jahre Erfahrung in den Bereichen Luft- und Raumfahrt, Verteidigung und Industrie mit. Er war zuvor Präsident und Chief Operating Officer von Bombardier Aerospace von 2008 bis 2014 und Operating Partner bei Advent International von 2016 bis 2021. Davor hatte er Führungspositionen bei Delphi Corporation (jetzt Aptiv), darunter als Vice President, President von Delphi Powertrain Systems und President von Delphi Europe, Middle East and Africa. Er begann seine Karriere bei General Motors Corporation in den Bereichen Fertigung und Ingenieurwesen. Er ist derzeit Nicht-Vorstandsmitglied bei Hexcel Corporation, einem Unternehmen für Verbundwerkstofftechnologien, das die Luft- und Raumfahrt- sowie Verteidigungsindustrie beliefert, und leitet dort den Vergütungsausschuss. Zuvor war er Nicht-Vorstandsmitglied bei Meggitt PLC, bis zu dessen Übernahme durch Parker Hannifin im Jahr 2022.**
**Chris Grigg, Non-executive Chair von Melrose Industries, erklärte in der Pressemitteilung: "Mit seiner umfangreichen Erfahrung bei führenden internationalen Luft- und Raumfahrt-, Verteidigungs- und Industrieunternehmen ist Herr Hachey hervorragend positioniert, um Melrose bei der Umsetzung unserer Strategie zu unterstützen."**
**Hachey hat einen MBA und einen Bachelor of Commerce Abschluss von McGill University.**
**Melrose Industries ist ein in Großbritannien ansässiges Unternehmen, das sich auf die Luft- und Raumfahrt- und Verteidigungssektoren konzentriert.**
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| 07.08.25 08:03:12 |
Are Robust Financials Driving The Recent Rally In Melrose Industries PLC's (LON:MRO) Stock? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Explore Melrose Industries's Fair Values from the Community and select yours
Melrose Industries' (LON:MRO) stock is up by a considerable 23% over the past three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. Specifically, we decided to study Melrose Industries' ROE in this article.
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
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How To Calculate Return On Equity?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Melrose Industries is:
11% = UK£316m ÷ UK£2.9b (Based on the trailing twelve months to June 2025).
The 'return' is the amount earned after tax over the last twelve months. So, this means that for every £1 of its shareholder's investments, the company generates a profit of £0.11.
See our latest analysis for Melrose Industries
What Is The Relationship Between ROE And Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.
Melrose Industries' Earnings Growth And 11% ROE
At first glance, Melrose Industries seems to have a decent ROE. Be that as it may, the company's ROE is still quite lower than the industry average of 15%. That being the case, the significant five-year 54% net income growth reported by Melrose Industries comes as a pleasant surprise. We believe that there might be other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. However, not to forget, the company does have a decent ROE to begin with, just that it is lower than the industry average. So this also does lend some color to the high earnings growth seen by the company.
Story Continues
As a next step, we compared Melrose Industries' net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 53% in the same period.LSE:MRO Past Earnings Growth August 7th 2025
The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. Is MRO fairly valued? This infographic on the company's intrinsic value has everything you need to know.
Is Melrose Industries Making Efficient Use Of Its Profits?
Melrose Industries' LTM (or last twelve month) payout ratio is a pretty moderate 26%, meaning the company retains 74% of its income. This suggests that its dividend is well covered, and given the high growth we discussed above, it looks like Melrose Industries is reinvesting its earnings efficiently.
Additionally, Melrose Industries has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 24%. Still, forecasts suggest that Melrose Industries' future ROE will rise to 18% even though the the company's payout ratio is not expected to change by much.
Conclusion
Overall, we are quite pleased with Melrose Industries' performance. In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 01.08.25 07:52:53 |
Melrose shrugs off tariff uncertainty amid boost from defence demand |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
GKN Aerospace owner Melrose Industries has swung to a first half profit thanks to a boost from rising demand in the defence and airlines sector.
The group shrugged off disruption sparked by US President Donald Trump’s trade war to post pre-tax profits of £379 million for the six months to June 30, against losses of £105 million a year ago.
On an underlying basis, profits rose 24% to £248 million, while earnings lifted 29% to £310 million.
Chief executive Peter Dilnot said the performance came against a “backdrop of supply chain and tariff disruptions”, which led to the firm reviewing supply chains and pricing.
Shares in the FTSE 100 listed group lifted nearly 7% in morning trading on Friday as the underlying earnings came in higher than forecast.
Melrose makes engine parts for jet fighters and military helicopters, as well as civil aircraft, and provides a range of technology for flights.
Mr Dilnot said: “Our multi-year transformation programme will be completed by year end and the benefits are already reading through with more to come.
“We have a clear strategy underpinned by attractive aerospace and defence markets, differentiated technology and established positions on the world’s leading civil and defence aircraft.”
He added the group was “confident about delivering sustained increases in profit and cash flow in the years ahead”.
Melrose kept its full year guidance unchanged on a constant currency basis, but the stronger pound against the US dollar saw it trim forecasts on a reported basis.
It now expects reported underlying operating profits of between £620 million to £650 million, against the £650 million to £690 million previously pencilled in.
Guidance for reported revenues was trimmed to between £3.43 billion and £3.58 billion, from the previous range of £3.55 billion to £3.7 billion.
But the guidance does not include any direct or indirect impact of tariffs.
Melrose has taken action to offset the impact of trade tariffs by adjusting its supply chain, negotiating with customers and suppliers, and the use of so-called drawback, which involves reclaiming taxes on imported goods that are later exported.
It said: “The industry continues to navigate the impact of these new trade restrictions which have put pressure on supply lines and customer deliveries.
“In response, we took immediate action to assess their impact and as a result of working closely with our partners and customers, have actioned a plan to successfully mitigate our identified direct exposure.
“Here, our global footprint provides us with excellent operational agility including the ability to rebalance production quickly and efficiently.”
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| 24.06.25 12:00:00 |
One Equity Partners Agrees to Sell BRUSH Group’s Power Distribution Business |
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NEW YORK, June 24, 2025--(BUSINESS WIRE)--One Equity Partners ("OEP"), a middle market private equity firm, announced that it has entered into a definitive agreement to sell the Power Distribution business of BRUSH Group ("BRUSH" or the "Company"). Financial terms of the private transaction were not disclosed. OEP previously sold BRUSH’s Power Generation business to Baker Hughes (NASDAQ: BKR) in October 2022, one year after OEP’s carve-out of BRUSH from Melrose Industries was completed.
Founded in 1889 and headquartered in Loughborough, United Kingdom, BRUSH provides OEM design and assembly and aftermarket parts and services for electrical power generation and distribution equipment. BRUSH’s products are used across a wide range of end markets, including utilities, industrial, rail, data centers and renewable applications.
At the time of OEP’s initial investment, the Company operated two divisions, Power Generation and Power Distribution. The Power Generation business designs, assembles, and services large scale generators that provide primary and standby electrical power to utility, datacenter and industrial customers worldwide. The Power Distribution business designs, assembles and services switchgear, transformers and controls for electric power distribution for utilities, electric vehicles, data centers, high speed rail, and other industrial applications mainly throughout the UK. OEP exited the Power Generation business one year after completing the carve-out of BRUSH and subsequently establishing its Power Networks division while growing the remaining sub-scale Power Distribution business into a platform of scale.
"OEP’s investment in BRUSH showcases our expertise in carve-out transactions and is a great example of how we effectively grow and improve businesses through our M&A focused strategy," said Steve Lunau, Partner at One Equity Partners. "OEP carved out a non-core business unit of a larger parent company, and in close partnership with management, helped the business become a strong standalone company, well-positioned for strategic M&A driven growth."
"BRUSH is another example of OEP’s value creation strategy" said Ori Birnboim, Partner at One Equity Partners. "After the strategic sale of Power Generation, we remained focused on growing the Power Distribution & Networks businesses, making BRUSH a leading electrical solutions and engineered products provider to United Kingdom’s critical infrastructure."
Under OEP’s four-year ownership period, BRUSH more than doubled EBITDA. BRUSH completed seven accretive acquisitions during OEP’s hold period, expanding the Power Generation, Power Distribution and Power Networks divisions and enhancing the overall footprint and capabilities of the Company. OEP and management also executed several operational excellence initiatives including initiatives to stand-up the business as an independent company, driving margin expansion, establishing Power Networks and growing the Power Distribution business following the sale of Power Generation.
Story Continues
"We are proud of BRUSH’s transformation under OEP’s ownership. Our partnership with OEP helped us unlock significant strategic value across three great business units over the last four years," said Nicolas Pitrat, CEO of BRUSH. "OEP was an excellent partner that brought significant expertise in the energy sector, sourcing and execution of transformational M&A, and building the Company as a scaled platform for growth, all of which are key to BRUSH’s evolution."
About One Equity Partners
One Equity Partners ("OEP") is a middle market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm seeks to build market-leading companies by identifying and executing transformative business combinations. OEP is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 400 transactions worldwide. OEP, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, Frankfurt and Amsterdam. For more information, please visit www.oneequity.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250623236866/en/
Contacts
Thomas Zadvydas
Stanton
646-502-3538
TZadvydas@stantonprm.com
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| 20.06.25 09:11:05 |
Great week for Melrose Industries PLC (LON:MRO) institutional investors after losing 13% over the previous year |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Key Insights
Given the large stake in the stock by institutions, Melrose Industries' stock price might be vulnerable to their trading decisions The top 8 shareholders own 52% of the company Insiders have been buying lately
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To get a sense of who is truly in control of Melrose Industries PLC (LON:MRO), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 82% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
After a year of 13% losses, last week’s 5.8% gain would be welcomed by institutional investors as a possible sign that returns might start trending higher.
Let's take a closer look to see what the different types of shareholders can tell us about Melrose Industries.
Check out our latest analysis for Melrose Industries LSE:MRO Ownership Breakdown June 20th 2025
What Does The Institutional Ownership Tell Us About Melrose Industries?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Melrose Industries already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Melrose Industries' historic earnings and revenue below, but keep in mind there's always more to the story.LSE:MRO Earnings and Revenue Growth June 20th 2025
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Melrose Industries. Capital Research and Management Company is currently the company's largest shareholder with 19% of shares outstanding. With 8.4% and 6.2% of the shares outstanding respectively, BlackRock, Inc. and Norges Bank Investment Management are the second and third largest shareholders.
We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
Story Continues
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Melrose Industries
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own less than 1% of Melrose Industries PLC. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own UK£9.9m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 10% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Melrose Industries better, we need to consider many other factors. For example, we've discovered 1 warning sign for Melrose Industries that you should be aware of before investing here.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 04.04.25 05:43:33 |
Melrose Industries Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Melrose Industries (LON:MRO) Full Year 2024 Results
Key Financial Results
Revenue: UK£3.47b (up 3.5% from FY 2023). Net loss: UK£49.0m (down from UK£1.00m profit in FY 2023). UK£0.037 loss per share (down from UK£0.001 profit in FY 2023).
AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.LSE:MRO Revenue and Expenses Breakdown April 4th 2025
All figures shown in the chart above are for the trailing 12 month (TTM) period
Melrose Industries EPS Beats Expectations, Revenues Fall Short
Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 14%.
The primary driver behind last 12 months revenue was the Structures segment contributing a total revenue of UK£2.01b (58% of total revenue). Notably, cost of sales worth UK£2.65b amounted to 76% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to UK£830.0m (95% of total expenses). Explore how MRO's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Aerospace & Defense industry in the United Kingdom.
Performance of the British Aerospace & Defense industry.
The company's shares are down 13% from a week ago.
Risk Analysis
You should always think about risks. Case in point, we've spotted 2 warning signs for Melrose Industries you should be aware of.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 07.03.25 07:04:24 |
Melrose Industries PLC (MLSPF) Full Year 2024 Earnings Call Highlights: Strong Profit Growth ... |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Profit Increase: 42% increase to GBP540 million in 2024. Revenue Growth: 11% like-for-like increase, led by the engines division. Operating Margin: Increased by 400 basis points to 15.6%. Earnings Per Share (EPS): Grew 45% to 26.4p. Engines Division Revenue Growth: 26% increase, driven by aftermarket performance. Aftermarket Revenue Growth: 32% increase, with Swedish military business up 74%. Operating Profit (Engines Division): Grew 40% to GBP422 million, with margins at 28.9%. Structures Division Revenue Growth: 3% increase, with defense revenue up 7%. Operating Profit (Structures Division): Grew 32% to GBP144 million, with margins increasing to 7.2%. Free Cash Flow (2024): GBP23 million before interest and tax. Net Debt: GBP1.321 billion, with leverage at 1.9 times. 2025 Revenue Guidance: GBP3.550 billion to GBP3.700 billion, with 7% like-for-like growth. 2025 Operating Profit Guidance: GBP680 million to GBP720 million, with margins exceeding 19%. Free Cash Flow Guidance (2025): In excess of GBP100 million post interest and tax.
Warning! GuruFocus has detected 9 Warning Signs with MLSPF.
Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Melrose Industries PLC (MLSPF) delivered a strong performance in 2024 with a 42% increase in profit to GBP540 million, despite lower-than-expected revenue growth. The company achieved an 80% reduction in lost time accidents and further improvements in quality, highlighting a strong focus on safety and operational excellence. Melrose Industries PLC (MLSPF) completed the sale of three noncore businesses, including two to Boeing, as part of its ongoing portfolio rationalization. The Engines division showed robust revenue growth of 26%, driven by strong aftermarket performance and good OE growth. The company is targeting high single-digit CAGR in revenue, leading to GBP5 billion of revenue by 2029, with significant margin expansion and cash generation.
Negative Points
The Structures division's growth was dampened by ongoing supply chain challenges and specific customer destocking and production rate changes. Overall revenue fell slightly short of expectations due to a weaker dollar impact of around GBP70 million. The company is tempering its revenue guidance for 2025 due to continued supply chain challenges affecting the aerospace industry. Melrose Industries PLC (MLSPF) faces higher tariffs on imports into the USA, particularly from Mexico, which could impact costs. The GTF program is currently consuming cash, with the program expected to turn cash positive only in 2028.
Story Continues
Q & A Highlights
Q: As we think about the growth of free cash flow from 2025 to 2029, should we expect the relative divergence between profit and cash driven predominantly by that variable consideration to progressively narrow? A: Matthew Gregory, Group Finance Director, explained that the gap is expected to narrow as cash grows faster than the buildup of the under work on asset over time. Peter Dilnot, CEO, added that they are confident in their targets and have a clear line of sight to achieve them, emphasizing the control over restructuring and the GTF powder metallurgy issue.
Q: Can you provide more details on the aerostructures margin guidance, which seems stronger than many aerostructures companies? A: Peter Dilnot highlighted that Melrose has repositioned its structures business to focus on design leadership, exiting noncore and unprofitable businesses. The company owns design rights and invests significantly to embed its technology on customer platforms, with repricing efforts in defense contributing to margin improvements.
Q: Regarding the GTF RRSP in 2028, what magnitude of delta are we going to see on that program? A: Matthew Gregory stated that while they cannot disclose specific levels of development spend due to commercial sensitivity, they are confident that the GTF will move into positive cash in 2028. The inflection point for the GTF becoming cash positive was always around 2028, with the depth of investment being somewhat higher but the shape remaining intact.
Q: Can you clarify your CapEx commentary, particularly regarding the additive manufacturing CapEx? A: Matthew Gregory clarified that the CapEx guidance of 1 to 1.2 times includes additive fabrication expenditure. They have updated their view on costs and are receiving subsidies and grants, allowing them to absorb these costs within the guidance.
Q: How confident are you in achieving the GBP600 million free cash flow target by 2029, and what assumptions are included? A: Matthew Gregory explained that the GBP600 million free cash flow target includes assumptions of low cash tax, working capital efficiency, and interest cost reductions. The target does not include any buybacks beyond the current program, and they are confident in achieving it based on current visibility and assumptions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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| 07.03.25 05:42:42 |
Melrose Industries Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Melrose Industries (LON:MRO) Full Year 2024 Results
Key Financial Results
Revenue: UK£3.47b (up 3.5% from FY 2023). Net loss: UK£49.0m (down from UK£1.00m profit in FY 2023). UK£0.037 loss per share (down from UK£0.001 profit in FY 2023).LSE:MRO Earnings and Revenue Growth March 7th 2025
All figures shown in the chart above are for the trailing 12 month (TTM) period
Melrose Industries EPS Beats Expectations, Revenues Fall Short
Revenue missed analyst estimates by 2.8%. Earnings per share (EPS) exceeded analyst estimates by 14%.
Looking ahead, revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Aerospace & Defense industry in the United Kingdom.
Performance of the British Aerospace & Defense industry.
The company's shares are down 11% from a week ago.
Risk Analysis
What about risks? Every company has them, and we've spotted 1 warning sign for Melrose Industries you should know about.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 06.03.25 10:31:13 |
Aerospace group Melrose's revenue outlook triggers share price slide |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
By Pushkala Aripaka
(Reuters) - GKN Aerospace owner Melrose (MRO.L) forecast 2025 revenue below most analysts' expectations, sending its shares sharply lower on Thursday, as global trade uncertainties and industry-wide supply chain challenges persist.
Shares of the aerospace parts supplier fell as much as 12%, making it the biggest loser on Britain's blue-chip FTSE-100 index (^FTSE).
Production delays and supply chain issues at top plane makers Boeing (BA) and Airbus (AIR.PA) have hurt aerospace, but Melrose has benefited from growing demand for after-market services as airlines extend the use of older aircraft.
It is also benefiting from burgeoning spending on defence, which makes up about a third of its business.
"We are well positioned for further progress in 2025, including the expected delivery of substantial free cash flow, despite ongoing industry challenges," CEO Peter Dilnot said.
Melrose did not factor potential trade tariffs in its forecasts but said any impact was likely to be "pretty small" for the company as a whole.
"If they land as they do today and they stick, in the context of a group that's going to generate 700 million (pounds) of operating profit, it's pretty small and it really impacts the flow of material between Mexico, where we have quite a large operating base, and into the US," Dilnot told Reuters, referring to Melrose's forecast for 2025.
"The rest of it is not covered by the tariffs."
Melrose expects 2025 revenue of 3.55-3.70 billion pounds ($4.58-$4.77 billion), below analysts' consensus of 3.77 billion pounds. It is targeting annual revenue growth in the high single digits over a five-year period.
"We continue to view Melrose as an attractive pureplay aerospace company, benefiting from market recovery and self-help initiatives, combined with an appealing valuation," Quilter Cheviot's Matt Dorset said.
For 2024, Melrose reported adjusted operating profit of 540 million pounds, and revenue of 3.47 billion pounds.
($1 = 0.7757 pounds)
(Reporting by Pushkala Aripaka and Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich and Christina Fincher)
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| 06.03.25 06:07:48 |
3 UK Stocks Estimated To Be Undervalued By Up To 48.1% |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
The United Kingdom's FTSE 100 index has recently faced challenges, closing lower due to weak trade data from China and concerns about global economic recovery. In such a volatile market environment, identifying undervalued stocks can be crucial for investors seeking potential opportunities, as these stocks may offer value despite broader market fluctuations.
Top 10 Undervalued Stocks Based On Cash Flows In The United Kingdom
Name Current Price Fair Value (Est) Discount (Est) Dr. Martens (LSE:DOCS) £0.6315 £1.20 47.5% GlobalData (AIM:DATA) £1.805 £3.37 46.5% Victrex (LSE:VCT) £9.46 £18.23 48.1% Deliveroo (LSE:ROO) £1.302 £2.50 47.9% Ibstock (LSE:IBST) £1.648 £3.08 46.6% Likewise Group (AIM:LIKE) £0.195 £0.37 47.6% Foxtons Group (LSE:FOXT) £0.614 £1.22 49.8% Kromek Group (AIM:KMK) £0.06 £0.11 47.5% Calnex Solutions (AIM:CLX) £0.55 £1.04 46.9% Melrose Industries (LSE:MRO) £6.80 £12.67 46.3%
Click here to see the full list of 53 stocks from our Undervalued UK Stocks Based On Cash Flows screener.
Below we spotlight a couple of our favorites from our exclusive screener.
GlobalData
Overview: GlobalData Plc, with a market cap of £1.43 billion, provides proprietary data, analytics, and insights across Europe, North America, and the Asia Pacific.
Operations: The company's revenue segment, amounting to £276.80 million, is derived from its provision of business information through data, analytics, and insights across its operational regions.
Estimated Discount To Fair Value: 46.5%
GlobalData is trading at £1.81, significantly below its estimated fair value of £3.37, suggesting it may be undervalued based on cash flows. The company's earnings are expected to grow significantly at 23.1% per year, outpacing the UK market's 14.1%. Despite insider selling and a dividend not fully covered by earnings, GlobalData plans a £50 million share buyback and aims to move from AIM to the Main Market for broader investor access.
In light of our recent growth report, it seems possible that GlobalData's financial performance will exceed current levels. Unlock comprehensive insights into our analysis of GlobalData stock in this financial health report.AIM:DATA Discounted Cash Flow as at Mar 2025
Ibstock
Overview: Ibstock plc manufactures and sells clay and concrete building products and solutions to the residential construction sector in the United Kingdom, with a market cap of £649.33 million.
Operations: The company's revenue is derived from two main segments: Clay products generating £249.97 million and Concrete products contributing £111.32 million.
Estimated Discount To Fair Value: 46.6%
Ibstock is trading at £1.65, well below its estimated fair value of £3.08, indicating potential undervaluation based on cash flows. Despite a drop in net income to £15.09 million for 2024 and lower profit margins, earnings are projected to grow significantly at 37.2% annually over the next three years, surpassing UK market expectations. However, the dividend yield of 4.25% isn't fully covered by earnings or cash flows, signaling caution for income-focused investors.
Story Continues
Upon reviewing our latest growth report, Ibstock's projected financial performance appears quite optimistic. Dive into the specifics of Ibstock here with our thorough financial health report.LSE:IBST Discounted Cash Flow as at Mar 2025
Victrex
Overview: Victrex plc, with a market cap of £822.63 million, manufactures and sells polymer solutions globally through its subsidiaries.
Operations: The company generates revenue from its segments, with Medical contributing £53 million and Sustainable Solutions accounting for £240.60 million.
Estimated Discount To Fair Value: 48.1%
Victrex is trading at £9.46, significantly below its estimated fair value of £18.23, highlighting potential undervaluation based on cash flows. While profit margins have decreased from 20.1% to 5.9%, earnings are forecast to grow substantially at 30.44% annually over the next three years, outpacing UK market expectations. However, the dividend yield of 6.3% isn't adequately covered by earnings or free cash flows, requiring careful consideration for income investors.
Our expertly prepared growth report on Victrex implies its future financial outlook may be stronger than recent results. Click here and access our complete balance sheet health report to understand the dynamics of Victrex.LSE:VCT Discounted Cash Flow as at Mar 2025
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include AIM:DATA LSE:IBST and LSE:VCT.
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