Melrose Industries PLC (MRO) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone and welcome to Melrose results for 2025. We appreciate you joining us to reflect on a transformational year and to talk through the exciting path we have for the future. We have lots of value to unlock, especially given strong demand and what we've done over the last few years to reposition our business. The key message today is that we're executing our plan. We've got a clear strategy to create shareholder value and we're getting on with it. We delivered a strong performance in 2025. There's no doubt that we're operating in a complex and dynamic global environment, and against this backdrop, our operating profit was up, driven particularly by engines and defence. We also delivered our cash target with positive free cash flow of £125 million, and this represents a really important inflection point in our journey. Good commercial and operational progress continued to be made, and we also completed our multi-year transformation programme. So this all gives us some very positive growth momentum, which is underpinned by the market, where there's strong demand across both civil and defence. Indeed, in all parts of our business, demand is very definitely on our side. We have established positions on all the world's leading aircraft and their engines, and this positions us squarely to benefit from strong future production ramp-up and the aftermarket, most notably in engines. Beyond this, the differentiated GTN technologies that we've prioritised are being actively sought out by leading OEMs. So we're nicely on track. We've got a clear path to delivering growth, margin expansion and increasing cash. This will deliver ongoing shareholder returns. And on that note, we're pleased to announce today a new share buyback programme reflecting our confidence in hitting...