Melrose Industries PLC (MRO) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone and welcome to our Melrose first half 2025 results presentation. It's certainly been a busy and important six months for us and I'm pleased with the progress that's been made. In the first half we've delivered a strong financial performance which includes substantial improvements in both profit and free cash flow versus last year. These results have been delivered against the backdrop of the ongoing industry-wide supply chain issues and the recent tariff disruptions. We've also moved further forward with our multi-year transformation programme, which completes this year. So we're firmly on track to deliver our full year guidance at constant currency. Looking forward, our path to value creation is both clear and compelling. Aerospace and defence markets are growing structurally with record order backlogs and an expanding aftermarket. In particular, the outlook for defence has changed significantly in recent months. with a step change in European and NATO spending commitments. Over the last few years, we've repositioned Melrose to focus where our design-led positions are deeply embedded in the world's leading aircraft. This has resulted in a unique portfolio that locks in growth from OE ramp-up and aftermarket growth in the years to come. Our differentiated and proprietary technology is also meeting evolving market needs and gaining commercial traction. At this point, we're entering a phase of accelerated cash flow generation, which is underpinned by growing earnings and one-time cost sending. We're therefore well positioned and confident about delivering our recently announced five-year targets. I'll come back to our growth outlook, but for now, let's return to our progress in the first half. On the financials, revenue was up 6%, and coupled with furthe...