Melrose Industries (MRO.L)
Melrose Industries is a British aerospace specialist that crafts engines and components for commercial and military aircraft.
Is Melrose Industries a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Exclusive focus on high-barrier aerospace engineering. Worth weighing: Past twelve-month share price performance has dipped. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has Melrose Industries actually fallen?
Over the last 2 years of daily prices, Melrose Industries fell as much as −43% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Next-generation fuel-efficient engines capture dominant market share.
Prolonged aerospace downturn dampens demand for new aircraft parts.
What does Melrose Industries do?
Having previously bought and spruced up various manufacturing businesses before selling them on, this FTSE company now focuses purely on civil and defence aviation technology. Revenue flows in by designing and supplying high-tech engine parts to global planemakers like Airbus and Boeing. Keeping a close eye on airline travel demand and supply chain snarls is vital, as these heavily influence how smoothly the production lines hum.
On our factor screen it looks strongest on value and income, and weakest on momentum.
- ✓Pays a dividend - about 1.7% a year
- ✓Growing - revenue up about 9% over the year
- !High P/E of 35 - big growth is already priced in
- Exclusive focus on high-barrier aerospace engineering
- Established relationships with major global planemakers
- Improving earnings growth compared to past years
- Momentum screens low (10/100)
- Supply chain bottlenecks slowing down factory outputs
- Unexpected disruptions in global commercial airline travel
- Rising costs for raw materials used in engine manufacturing
What do Melrose Industries's numbers mean?
Does Melrose Industries pay a dividend?
Yes - Melrose Industries currently pays a dividend of about 1.7% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
What do the numbers say about Melrose Industries's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
When does Melrose Industries report earnings, and how did recent quarters go?
Melrose Industries is next scheduled to report on about 2027-02-26 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Southwest Airlines Co.What are the scenarios for Melrose Industries?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Melrose Industries?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Exclusive focus on high-barrier aerospace engineering
- Established relationships with major global planemakers
- Improving earnings growth compared to past years
- Past twelve-month share price performance has dipped
- Heavy reliance on complex global supply chains
- Exposed to broader economic wobbles affecting air travel
- Supply chain bottlenecks slowing down factory outputs
- Unexpected disruptions in global commercial airline travel
- Rising costs for raw materials used in engine manufacturing
The write-up's own warning lights — if these start happening, the case above changes.
- A major shift or cancellation in large airline fleet orders
- Persistent margin compression due to rising production costs
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.