Melrose Industries PLC

MRO: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Melrose Earnings: Strong Profit, but Revenue Outlook Cut Again; Fair Value Estimate Under Review

Loredana Muharremi

Mar 7, 2025

Wide-moat Melrose delivered GBP 540 million in operating profit, a 42% year-on-year increase, despite lower-than-expected revenue growth due to supply chain disruptions and customer destocking. Melrose has once again lowered its revenue estimates for the midterm, citing a mix of industrywide supply chain challenges, customer production rate adjustments, and specific headwinds hitting key platforms. This marks a continuation of a trend where revenue expectations have been tempered, despite strong profit growth and margin expansion. Consequently, we are placing our fair value estimate for the company under review.

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Melrose Industries PLC

Melrose Earnings: Strong Profit, but Revenue Outlook Cut Again; Fair Value Estimate Under Review

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