Melrose Industries (MRO) Q1 2026 TU earnings summary

Executive summary

• Achieved strong financial performance in Q1 2026, with group revenue up 11% year-over-year, driven by Engines (+20%) and Airframes (+4%).

• Adjusted operating profit for the group and both divisions significantly exceeded the same period last year.

• Operational and commercial progress continued, with Engines benefiting from both original equipment and aftermarket growth.

Financial highlights

• Group revenue increased 11% compared to Q1 2025.

• Adjusted operating profit for the group and both divisions was well ahead of Q1 2025.

• Net debt and free cash flow were in line with expectations.

Outlook and guidance

• Full-year 2026 revenue guidance: £3.75 billion to £3.95 billion.

• Adjusted operating profit expected between £700 million and £750 million, with a margin of approximately 19% at the midpoint.

• Free cash flow generation forecasted at £150 million to £200 million after interest and tax.

• Profit and cash generation expected to be second-half weighted due to seasonality.

• Guidance assumes no further material impact from Middle East conflict and uses a US$1.37 average exchange rate.