Melrose Industries Reports 26% Engine Revenue Growth on Aftermarket Strength in 2024

Melrose Industries

Defence spending and additive fabrication boost GKN Aerospace unit despite civil production headwinds.

Melrose Industries, the UK-based parent of GKN Aerospace, reported a 26% rise in engine division revenue to £1.46 billion ($1.88 billion) in 2024. The company’s engine aftermarket business grew by 32%, helping push operating profit up 40% to £422 million.

Aftermarket demand surged due to increased defence contracts and maintenance-related services, as commercial aircraft deliveries remained constrained. This dynamic benefited Melrose’s service business while placing pressure on original equipment (OE) volumes.

Defence Demand and OEM Partnerships Support Outlook

Melrose highlighted strong defence sector momentum, which offset civil market weakness. While structures revenue rose 3% to £2.01 billion, it declined 5% when adjusted for exited business. Civil aircraft destocking and sluggish OE build rates—notably at Boeing and Airbus—continued to limit growth.

The company's revenue mix remains 72% civil to 28% defence, but with EU and NATO nations ramping military budgets, defence is set to play a larger role in 2025 and beyond.

Melrose also made strategic strides in additive fabrication, delivering its first fully 3D-printed demonstrator case for CFM International’s RISE engine programme. It has secured long-term contracts with Pratt & Whitney and GE Aerospace, positioning itself as a key player in next-generation aerospace components.

2025 Outlook: Growth to Moderate Amid Supply Chain Constraints

Melrose projects 2025 revenue between £3.55–3.7 billion, but cautioned that supply chain bottlenecks may slow growth, especially in the structures business. However, continued aftermarket expansion and innovation in fabrication techniques offer upside for the engine division.

With strong defence tailwinds, additive manufacturing adoption, and established OEM ties, Melrose is well-positioned for strategic growth across core aerospace segments.