Investment case
Melrose is a leading UK-listed global aerospace business with a record of delivering significant value to shareholders.
Our strategy is focused on value creation, founded upon continuous operational and financial improvement over the longer term
Our positive trajectory is underpinned by the strong organic growth prospects within the aerospace sector, our exceptional engines aftermarket, sustained profit growth and our strong balance sheet.
1. Structural market growth
The aerospace market has recovered rapidly and is characterised by long-term structural growth, including record aircraft order books. Within this market, our aero engines and structures technology is embedded on all the world's most successful, highest volume platforms.
2. Exceptional engines aftermarket
We have a uniquely wide risk and revenue sharing partnership (RRSP) portfolio. On these programmes, our work is largely complete when the engine is built, while we are entitled to lifetime share of the aftermarket profits. Our RRSPs will deliver an estimated £22bn of lifetime net cash inflow (£5.7bn NPV) for the business.
3. Sustained profit growth
Our profit more than doubled in 2023, and is expected to expand significantly again to reach our 2025 targets. We will see increasingly higher drop through from the strong Engines division growth in the years ahead.
4. Strong balance sheet
Melrose completed a £500m share buyback programme in September 2024, and extended that with another £250m buyback commitment running to March 2026. We will retain our disciplined approach to capital allocation as our engine RRSPs continue to mature.