Corrections & Amplifications
This headline was corrected at 0754 GMT to reflect Melrose Industries Sees FY24 Rev GBP3.5B-GBP3.7B. The original version incorrectly said Melrose Industries Raises FY24 View To Rev GBP3.3B-GBP3.4B.
This headline was corrected at 0744 GMT to reflect Melrose Industries Sees FY23 Adj. Operating Profit GBP400M-GBP410M. The original said the company sees FY24 Adj. Operating Profit GBP400M.
This headline was corrected at 0752 GMT to reflect Melrose Industries Sees FY23 Aerospace Adj. Operating Profit GBP400M-GBP410M. The original correction omitted the word “Aerospace.”
This correction was corrected at 0747 GMT to reflect Melrose Industries Sees FY23 Aerospace Adj. Operating Profit GBP400M-GBP410M. The original correction omitted the word “Aerospace.”
Melrose Industries announced impressive results for the four months leading up to October 31, surpassing expectations and raising its aerospace guidance for the year.
The London-listed turnaround specialist reported a remarkable 18% growth in revenue and highlighted an increase in underlying demand.
Notably, the engines division experienced consistent revenue growth of 18%, accompanied by adjusted operating margins exceeding 25%. The company pointed out that this outstanding performance was driven, in part, by strong aftermarket trading, which witnessed a substantial 24% rise. Additionally, the company emphasized that the aftermarket’s higher profitability has contributed to stronger margins, and this trend is expected to continue without any signs of deceleration.
Despite facing supply-chain challenges within the industry, engine original equipment volumes continued to rise. However, these volumes were constrained due to ongoing issues faced by original equipment manufacturers.
Looking ahead to 2023, Melrose Industries anticipates adjusted operating profit in the aerospace division to range between £400 million and £410 million ($496.7 million to $509.1 million), surpassing their previous guidance of £375 million to £385 million. The company also projects group revenue to reach £3.3 billion to £3.4 billion.
Melrose Industries’ strong performance and positive outlook signal its ability to navigate challenges effectively while achieving growth in key business segments.