MRO

Melrose Industries PLC

Industrial Goods and Services First-pass screen £6.0bn

450/1000 Overall fit

AI beneficiary 35% 30

Operating leverage 25% 72

Valuation 25% 30

Downside protection 15% 62

First-pass take

Strong operating leverage (23% profit growth on 8% revenue growth; Engines margins 31.9%) and FCF inflection with £125m generation, but lacks disclosed valuation metrics and carries 1.8x net debt. Material powder metal costs (£200m total, ~£50m 2026) and supply chain headwinds offset strong order backlogs. Low AI exposure limits upside potential.

Flags

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