Melrose profits jump 21% on global tensions, military spending

(Sharecast News) - UK aerospace and defence company Melrose on Friday targeted 2026 earnings of £700 - 750m after a 21% jump in profits last year as global tensions and conflicts sparked a "significant" increase in military spending. Adjusted pre-tax profit came for the year to December 31 came in at £515m from £438m a year earlier. Melrose also turned free cash flow positive to £125m - a turnaround of £199m - and unveiled a £175m share buyback.

Chief executive Peter Dilnot said profit growth was driven by increased demand across its aircraft engines and defence operations and forecast "substantial" further increases in cash generation.

"We have positive momentum and are well-positioned to benefit from expected production ramp-ups and ongoing aftermarket expansion," he added.

Reporting by Frank Prenesti for Sharecast.com