Skip to Content

Company Reports

All Reports

Stock Analyst Note

We are initiating coverage of Melrose Industries with a wide moat and fair value estimate of GBX 870 per share, backed by anticipated growth in flight hours largely fueled by leisure travel and alongside a surge in defense expenditure in response to escalating global security concerns. The valuation is further bolstered by a strategic shift in product mix toward higher-margin aftermarket revenue.
Company Report

Melrose Industries, through GKN Aerospace, is a leading engine and structure components supplier, with 70% of its revenue coming from long-term contracts in which the company is the sole-source provider. In the engine segment, the company has a well-balanced portfolio across narrow-body and wide-body aircraft, acting as a Tier 1 supplier with established positions on 90% of active engines, with risk and revenue-sharing partnerships for 74% of them. The company is a long-term partner with all engine original equipment manufacturers such as Pratt & Whitney, GE, Safran, and Rolls-Royce.

Sponsor Center