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Melrose (MLSPF)
OTHER OTC:MLSPF
US Market
EarningsQ2 2026 Earnings Report

Melrose (MLSPF) Q2 2026 Earnings Report

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MLSPF Q2 2026 EPS Results

Actual EPS$0.23
Consensus EPS$0.23
Beat/MissBeat by +<$0.01
One Year Ago EPS$0.20

MLSPF Q2 2026 Revenue Results

Actual Revenue$2.48B
Expected Revenue$2.41B
Beat/MissBeat by +$73.80M
YoY Revenue Growth+8.90%

Earnings Announcement Details

QuarterQ2 2026
Date07/31/2026
TimeBefore Open
Conference CallFriday, July 31, 2026
MLSPF Upcoming Earnings
Melrose's next earnings date is estimated for March 4, 2027, based on past reporting schedules.

Q2 2026 Earnings Call Audio

No earnings call audio is available for this earnings event.

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 31, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive operational and financial performance: double‑digit revenue and profit growth, margin expansion, improving free cash flow, strong engines momentum, safety and productivity gains, and clear strategic progress on additive fabrication and uncrewed programs. The principal negative driver was the Garden Grove incident — operational disruption, near‑term profit and cash impacts, expected exceptional costs (GBP 25–30M in H2), legal/regulatory uncertainty and a paused buyback — all of which introduce headline risk and some near‑term uncertainty. Management reiterated FY guidance excluding the Garden Grove impact and remains confident in medium‑term cash targets (GBP 600M FCF by 2029). On balance, the positives across growth, margins, cash trajectory and strategic positioning outweigh the manageable but material Garden Grove headwinds.
Company Guidance
Management reiterated 2026 guidance (excluding the uncertain Garden Grove impact) for group revenue of £3.75–3.95bn (midpoint ≈10% like‑for‑like growth) and pre‑Garden Grove operating profit of £700–750m, with underlying cash flow expected at £150–200m and a longer‑term free cash flow target of £600m in 2029. They quantified Garden Grove: H1 revenue/profit hits of £16m/£9m, a projected H2 site output at ~50% with ≈£6m revenue impact per month, H1 exceptional P&L costs £13m (£5m cash paid) and a further £25–30m of exceptional cash costs expected in H2 (all expected to be cash; insurance/legal recoverability remains under review), and accordingly paused the £175m buyback (£12m spent) after completing a prior £250m program. H1 results included revenue +10%, operating profit £347m (+16%), margin 18.5% (+50bps), EPS >20% YoY, free cash flow +£13m (improvement of £67m YoY), capex £52m (FY guide £120–140m), net debt £1.53bn (1.8x EBITDA, down from 2.0x last year and within the 1.5–2x policy), a £15m net factoring outflow (pre‑factoring cash would be +£28m), a £27m GTF payment in H1 (FY guide £50m; within a £200m envelope), and an unexpected June customer receipt acceleration of £20–25m; operational metrics included a 25% H1 reduction in total incident rate (over 65% vs three years), DIO down 7 days, productivity up ~230bps (3pp) and cost of poor quality down 12%. Management said the headline FY guidance stands excluding Garden Grove and will provide updates as regulatory, legal and insurance clarity emerges.
Group revenue and profit growth
Group revenue grew 10% (constant currency) in H1 2026 and group operating profit increased 16% to GBP 347M (nearly GBP 350M), with EPS improving by over 20% year-on-year.
Improved margins and productivity
Group margin increased to 18.5% (H1 margin up c.50bps). Productivity improved materially (management cited a 230 basis points improvement and a separate H1 productivity improvement of ~3 percentage points) and cost of poor quality improved ~12%.
Engines division outperformance
Engines revenue up 19% with OE accelerating to +23% and aftermarket delivering mid-teens growth; RRSP civil revenue +18%, repairs +27%, government partnership growth +29%. Engines delivered profit growth of 21% and margin expansion (40bps reported, 100bps excluding variable consideration).
Cash generation and balance sheet progress
Positive free cash flow in H1 of GBP 13M, representing a GBP 67M year-on-year improvement; net debt of GBP 1.53B (1.8x EBITDA) down from 2.0x a year earlier and comfortably within the 1.5x–2x policy; returned c. GBP 130M to shareholders in H1.
Operational and safety improvements
Total incident rate reduced 25% in H1 and is down over 65% versus three years ago; Days Inventory Outstanding reduced by 7 days in H1; Brilliant Basics lean program driving measurable operational gains (examples include a 90% reduction in inspection time at Tallassee and an 80% reduction in supplier-related customer issues at Hoogeveen).
Strategic technology & commercial progress
Progress on strategic initiatives: continued advancement in additive fabrication (certified additive structural part on commercial engine - GTF fan case mount ring; producing 100% of that part additively), expansion of fan blade repair in San Diego, new repair agreements with Rolls‑Royce and Pratt & Whitney, involvement in major uncrewed/next‑gen programs, and investments in capacity (CapEx H1 GBP 52M; FY guidance GBP 120–140M).

MLSPF Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Mar 04, 2027
2026 (Q4)
0.23 / -
0.225―
2026 (Q2)
0.23 / 0.23
0.217.22% (+0.03)
2025 (Q4)
0.22 / 0.23
0.19515.65% (+0.03)
2025 (Q2)
0.19 / 0.20
0.15826.89% (+0.04)
2024 (Q4)
0.19 / 0.19
0.13544.12% (+0.06)
2024 (Q2)
0.15 / 0.16
0.09958.67% (+0.06)
2023 (Q4)
0.13 / 0.14
0.138-1.92% (>-0.01)
2023 (Q2)
0.08 / 0.10
0.06553.06% (+0.03)
2022 (Q4)
0.14 / 0.14
0.056147.62% (+0.08)
2022 (Q2)
0.04 / 0.06
0.0650.00% (0.00)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed