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Melrose Reports Strong Revenue Growth as Aftermarket Demand Surges in Aerospace Sector
Melrose Industries, owner of GKN Aerospace, posted a 14% revenue increase over four months, supported by soaring aftermarket demand and higher defense spending. A new U.S.-UK trade deal removing tariffs on UK-made aerospace parts has further strengthened its market position.
Melrose Industries (MRON.L), the owner of GKN Aerospace, reported a 14% rise in revenue for the four months ending 31 October, driven by robust aftermarket demand and continued strength in its engines division.
Heightened geopolitical tensions have triggered an increase in global defense spending, boosting demand for suppliers such as Melrose. Meanwhile, production delays at major customers have kept older aircraft flying longer, significantly increasing demand for parts and maintenance—the company’s most profitable business segment.
In a statement, Melrose said that ongoing geopolitical uncertainty is reshaping defense investment worldwide, creating fresh growth opportunities for aerospace component manufacturers.
The company is also benefiting from a U.S.-UK trade agreement announced in June, which removed a 10% import tariff on engines and aerospace components manufactured in Britain. The policy has helped eliminate pricing distortions for key customers.
The London-listed supplier maintained its full-year guidance for adjusted operating profit and free cash flow.
($1 = 0.7451 pounds)
