Melrose Industries PLC (MRO) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Well hello everyone and welcome to Melrose 2024 results. It's great to see so many of you here in London with us and I know we've got lots of others on the webcast too. So welcome to you all and thanks for joining us. Now this is actually our third set of results as a focused aerospace technology business. 2024 was a busy and successful year for us. And we've got good momentum going into 2025. And clearly, we're going to cover lots of that shortly. But importantly, today, we're also announcing new five-year targets. These are built on our clear plans for our repositioned aerospace group. And they also reflect our confidence and our excitement about where we're going to take Melrose from here. So running order today is I'll give some highlights on all of this up front and then Matthew will do 2024 and 2025 before I return to talk in more detail about these five year targets. Let's just get started with some headlines. Firstly, as I said, we delivered a strong performance in 2024 with profit at the top end of expectations against a backdrop of what we all know has been a difficult time in the industry with supply chain challenges. This progress continues with our positive momentum into 2025. And this year, we're going to complete our multi-year transformational restructuring program and will also deliver substantial free cash flow. Now, on the five year target, these include good revenue growth, primarily from the market ramp up, significant further margin expansion and ongoing step ups in cash generation. So lots of value to unlock. Some highlights specifically on 2024 include this 42% increase in profit to £540 million. This was delivered despite lower than expected revenue growth due to these reduced production rates. So our margin expansion was the result of busine...