Loading…
UK aerospace-components group, post the 2023 GKN Automotive demerger, making engine and structures parts for aircraft makers.
UK aerospace-components group, post the 2023 GKN Automotive demerger, making engine and structures parts for aircraft makers.
Under long-term risk-and-revenue-sharing deals on engine programs, it funds development of parts up front and is paid across the engine's life, including a share of the engine makers' aftermarket sales, which makes flying hours key. Since the 2023 demerger of its automotive business, Dowlais, it is purely aerospace.
In one line: A UK aerospace supplier, like a smaller Howmet Aerospace or TransDigm.
Moat: narrow (customer qualification, switching costs, IP). Parts are certified into specific engine/airframe programs, and re-qualifying a new supplier is slow and costly.
Headquarters: London, UK · Founded: 2003 · Employees: 13,844
Size Melrose Industries (MRO.L) is a United Kingdom Industrials company (Aerospace & Defense) with a market value of $7.80B, the 61st largest of 363 United Kingdom companies the cockpit tracks. Shares closed at £465.30 on 6 Nov 2026.
Performance Over six months the shares fell 3.6%, against -15.4% for the median peer and +3.6% for the United Kingdom market (cap-weighted) — 7th highest of 21 in its peer set.
Growth Revenue grew 8.6% over the last twelve months (peer median +16.7%); the operating margin is 11.2% (peer median 7.8%).
Valuation It trades at 13.4× forward earnings against a peer median of 38.9× (cheapest of 19).
Price implies For today's price to make sense, revenue must grow about 15% a year for seven years (Req g). Recent delivered growth is -13%, so the hurdle is +28 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 3.1 points below its cost of capital (9.8% WACC).
Next results Next results expected around 4 Mar 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | £3.74B | £3.59B | £3.47B | £3.35B | £2.95B |
| Revenue growth | — | +3% | +4% | +13% | — |
| Gross profit | £875M | £668M | £526M | £352M | £129M |
| EBITDA | £811M | £784M | £668M | £494M | £228M |
| Net income | £160M | £370M | -£49.0M | -£41.0M | -£292M |
| Free cash flow | £202M | £128M | -£226M | -£64.0M | £136M |
| Capital expenditure | £97.0M | £95.0M | £123M | £106M | £76.0M |
| Total debt | n/a | £1.90B | £1.65B | £822M | £1.86B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Melrose Industries MRO.L | $7.80B | -4% | +9% | 11% | 13.4× | 15.3% |
| Howmet Aerospace HWM | $81.8B | -24% | +22% | 28% | 32.6× | 24.1% |
| Safran SAF.PA | $138B | +4% | +14% | 13% | 28.5× | 22.2% |
| Senior SNR.L | n/a | +4% | n/a | n/a | n/a | n/a |
| TransDigm TDG | $66.2B | -1% | +17% | 47% | 25.5× | 9.7% |
| MTU Aero Engines MTX.DE | $20.9B | +21% | +12% | 13% | 18.5× | 6.3% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | MRO.L | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +6.2% | -1.3% | 6th highest of 21 |
| 6-month return | -3.6% | -15.4% | 7th highest of 21 |
| Distance from 52-week high | -32.1% | -34.3% | 10th highest of 21 |
| Revenue growth (TTM) | +8.6% | +16.7% | 7th lowest of 21 |
| Operating margin | 11.2% | 7.8% | 7th highest of 21 |
| Forward P/E | 13.4× | 38.9× | cheapest of 19 |
| Growth the price implies (Req g, 7 yrs) | 15.3% | 17.3% | 5th least demanding of 9 |
| Growth delivered (Del g) | -12.8% | +7.3% | lowest of 9 |
| Hurdle (Req g minus delivered) | +28.1 pp | +0.5 pp | most demanding of 9 |
| ROIC minus cost of capital | -3.1 pp | +0.1 pp | 6th lowest of 20 |
| EV / EBITDA | 9.4× | 23.2× | cheapest of 11 |
| Net debt / EBITDA | 2.3× | 2.5× | 5th least indebted of 11 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Melrose Industries MRO.L | United Kingdom | $7.80B | -4% | +9% | 11% | 13.4× | 15.3% | -12.8% |
| Korea Aerospace 047810.KS | South Korea | $7.37B | -39% | +44% | 6% | 45.4× | n/a | n/a |
| AVIC Airborne Systems 600372.SS | China | $8.36B | -11% | -2% | 5% | 48.1× | n/a | n/a |
| Loar LOAR | United States | $7.05B | +26% | +30% | 25% | 52.2× | 29.1% | +27.5% |
| Raytron Technology 688002.SS | China | $8.64B | -15% | +84% | 29% | 26.4× | 20.1% | +32.1% |
| Hanwha Systems 272210.KS | South Korea | $6.93B | -57% | +30% | 6% | 82.5× | n/a | n/a |
| Leonardo DRS DRS | United States | $9.08B | -18% | +9% | 11% | 23.1× | 4.6% | +5.6% |
| Kratos Defense & Security Solutions KTOS | United States | $6.59B | -39% | +26% | 2% | 36.4× | n/a | n/a |
| China Aerospace Times Electronics 600879.SS | China | $6.43B | -46% | -13% | 1% | 130.0× | n/a | n/a |
| BETA Technologies BETA | United States | $6.37B | +45% | +136% | -1,033% | n/a | n/a | n/a |
| AVIC Xi'an Aircraft Industry 000768.SZ | China | $9.92B | +1% | -34% | 3% | 55.7× | n/a | n/a |
| Hexcel HXL | United States | $6.09B | -16% | +8% | 11% | 29.6× | 23.0% | +4.5% |
| Hensoldt HAG.DE | Germany | $10.0B | +2% | +15% | 10% | 41.3× | 12.2% | +15.3% |
| Karman KRMN | United States | $6.04B | -25% | +50% | 19% | 57.5× | n/a | n/a |
| Moog MOG-A | United States | $10.3B | +3% | +16% | 12% | 27.8× | 15.1% | +6.0% |
| Joby Aviation JOBY | United States | $5.89B | -45% | +118,568% | -754% | n/a | n/a | n/a |
| AeroVironment AVAV | United States | $5.73B | -33% | +84% | 1% | 33.5× | n/a | n/a |
| Jonhon Optronic Technology 002179.SZ | China | $10.7B | -7% | +6% | 11% | 30.4× | n/a | n/a |
| BWX Technologies BWXT | United States | $11.0B | -42% | +18% | 10% | 23.8× | 19.6% | +8.5% |
| Glarun Technology 600562.SS | China | $5.43B | +6% | -8% | 21% | 51.7× | n/a | n/a |
| Huntington Ingalls Industries HII | United States | $11.4B | -8% | +13% | 5% | 14.4× | 5.3% | +5.9% |