Should I buy Melrose Industries stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Melrose Industries for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, paid by Melrose Industries.

What is Melrose Industries?

How much is Melrose Industries stock?

The price of Melrose Industries stock is rising this week. Currently trading at 524.00 pence, the stock is down 1.32% over the last 24 hours but has gained 1.28% in the past week. With a market capitalisation of £6.76 billion and an average three-month daily volume of 3.5 million shares, Melrose Industries remains highly liquid in the UK market. There is no current P/E Ratio due to negative trailing earnings, but the company offers a dividend yield of 1.13% and a stock beta of 1.05—indicating slightly higher volatility than the market average. Recent positive trading signals and solid sector prospects may present attractive opportunities for investors watching the aerospace and defence sector.

Our full analysis of the Melrose Industries stock

We have thoroughly reviewed Melrose Industries’ latest financial results alongside its share price evolution over the past three years. By combining a broad set of financial metrics, technical signals, sector data, and peer benchmarks through proprietary algorithms, we deliver a layered, expert view of the company. So, why might Melrose Industries stock once again become a strategic entry point into the aerospace and defence sector in 2025?

Recent performance and market context

Melrose Industries delivered a solid performance amid a complex macro environment, with its stock currently trading at 524.00 pence. While the share price is up 1.28% over the past week, it has drifted 3.5% lower in six months and experienced a modest 6.2% pullback over the year. Despite this, Melrose Industries stands resilient, backed by annual revenues that grew 3.5% to £3,468 million in 2024 and operating profit notably reaching £540 million. A dynamic sector backdrop, fuelled by rising defence spending in Europe and North America and a rebound in global civil aerospace, underpins the group’s steady demand trajectory. Recent announcements—including ambitious long-term profitability targets and ongoing share buybacks—signal strong underlying management confidence and reinforce the company’s long-term growth commitment.

Notably, Melrose Industries benefits from its unique positioning as an advanced aerospace components supplier to major programmes with Boeing and Airbus, enabling it to benefit both from civil aviation recovery and sustained military investment. Furthermore, its proactive response to persistent supply chain disruptions highlights an adaptive strategy in a highly competitive marketplace.

Technical analysis

• The 14-day RSI presently reads 62.2, consistent with firm momentum but not yet in overbought territory, suggesting room for further upside.
• The MACD (12, 26) is strongly positive at 15.9, generating a firm buy signal and underlining short- to mid-term strength.
• All major moving averages (20, 50, 100, and 200 days) reside below the current price, with each sending a “buy” signal, confirming sustained upward price movement.
• The stock’s support is robust at 376 pence, corresponding to its 52-week low, providing significant downside protection.
• Resistance is in focus at 682.60 pence (the 52-week high), offering an appealing technical target in any sustained rally.
• Recent trading has produced 13 technical buy signals versus just one sell, indicating broad-based momentum across multiple chart timeframes.

This unified positive technical stance, combined with a moderate beta of 1.05, creates an environment conducive to tactical accumulation while offering a favourable buffer against broader market volatility.

Fundamental analysis

• Revenue growth: The company’s revenues expanded 3.5% in 2024 and are projected to grow a further 5.8% in 2025, demonstrating tangible resilience and sector leadership.
• Profitability: Operating profit in 2024 reached £540 million, with forward guidance anticipating a leap to £667 million—a 26% increase—fuelled by operational efficiencies and increased demand.
• Valuation: While the current trailing P/E ratio is not available due to temporary negative net profit, a return to positive earnings is widely expected by analysts as the margin and demand picture improves. Melrose’s forward-leaning capital investment and buyback strategies point to strong value creation ahead.
• Market position and innovation: As a world leader in lightweight composite and high-tech electrical systems for aerospace, Melrose commands essential positions in multi-decade platforms with global OEMs.
• Structural strengths: Deep customer relationships, technological leadership, a large global footprint (Europe, North America, Asia-Pacific), and a nimble capital structure enable the company to readily capture opportunities in all market cycles.
• Shareholder returns: A dividend yield of 1.13%—modest but sustainable—reflects disciplined cash management and a commitment to balancing reinvestment with payout.

The company’s brand, renowned for precision and innovation, ensures it is well-placed to capture value as the aerospace and defence sector accelerates its rebound and transformation.

Volume and liquidity

• Trading volume: Averaging 3.5 million shares per day over the last three months, Melrose remains one of the LSE’s more actively traded industrials.
• Market capitalisation: Standing at £6.76 billion, Melrose is sufficiently large to attract both UK institutional and international investors.
• Float: With a free float of 1.26 billion shares out of 1.27 billion issued, Melrose’s share structure supports efficient price formation and reduced volatility spikes.

This high liquidity means investors can readily build, adjust, or exit positions with minimal impact, making Melrose a flexible component in both tactical and strategic equity allocations.

Catalysts and positive outlook

• Sector tailwinds: Continued growth of European and American defence budgets and a post-pandemic rebound in commercial aerospace travel are fuelling fresh orders for advanced components.
• Major platform exposure: Secure participation in new and ongoing Boeing and Airbus aerospace programmes will lift both revenue visibility and market share.
• Digital and operational transformation: Ongoing investment in automation, efficiency, and digital integration is set to drive meaningful productivity improvements.
• Share buyback programme: Ongoing repurchases support EPS growth, reinforce management’s confidence, and limit dilution.
• ESG and innovation: Advanced lightweight composites and an expanding offering of electrified aircraft systems play directly into sustainability trends—essential for the next phase of aviation technology.
• Analyst sentiment: Consensus price targets imply 21% upside from current levels (~636 pence), while most commentaries highlight Melrose’s scope for sustained margin expansion as supply chain pressures ease.

In summary, Melrose Industries is uniquely positioned at the intersection of cyclical rebound and secular growth in aerospace, with robust catalysts on the horizon and an agile, innovative operational model.

Investment strategies

Melrose Industries offers a range of attractive options for investors across all time horizons:

• Short term:
• With the share price consolidating above key moving averages and support at 376 pence, technical conditions favour near-term trading entries.
• Recent momentum and strong technical buy signals allow tactical investors to target moves towards resistance at 682.60 pence.

• Investors can take advantage of strong earnings growth expectations, operational milestones, or positive news regarding order wins or platform expansions.
• The ongoing share buyback programme provides incremental upside and aligns management with shareholder interests as results are delivered.

• Strategic exposure to Melrose Industries is warranted given its multi-decade programme tie-ups, exposure to global aerospace recovery, and sector-defining innovation in electrification, composites, and ESG-driven design.
• For those constructing a diversified portfolio, Melrose offers an effective balance between defensive qualities (due to government/defence contracts) and leverage to global economic upturns.
• The current depressed valuation—arising from short-term earnings noise—may provide a rare opportunity for accumulation before the next sector re-rating.

Across all timeframes, strong volume and liquidity allow for phased position building or opportunistic reinforcement, aligning well with a disciplined, long-term approach.

Is it the right time to buy Melrose Industries?

All indicators support the case that Melrose Industries is entering a promising new chapter. With robust technical buy signals, improving financial momentum, a diversified platform of aerospace and defence innovation, and active capital management, the stock seems to represent an excellent opportunity within the GB industrials and technology space. As the company capitalises on sector tailwinds, operational efficiencies, and substantial programme exposure, the fundamentals justify renewed interest—and the potential for a new bullish phase appears strong.

For investors attentive to quality, resilience, and secular growth, Melrose Industries stands out as a forward-thinking choice. The current market context, combined with a powerful set of growth catalysts and sustained demand outlook, suggests this stock may be entering an inflection point with compelling upside potential.

How to buy Melrose Industries stock in the UK?

Buying Melrose Industries stock online is simple and secure for UK investors using a regulated broker. You can choose spot buying, which means purchasing real shares to hold for the long term, or opt for trading via Contracts for Difference (CFDs) to access leverage and profit from price movements without owning the shares. Both methods are accessible with a few clicks from your computer or mobile, making the process efficient and transparent. For help choosing the best platform in the UK, see our broker comparison further down the page.

Spot buying

Cash buying means purchasing actual Melrose Industries shares directly on the London Stock Exchange. This approach is straightforward and typically involves a fixed commission per order (around £4–£8 at most UK brokers). You own the shares, benefit from potential dividends, and can keep them as long as you wish.

Share Purchase Gain Scenario Example

If the Melrose Industries share price is 524p (£5.24), you can buy around 190 shares with a £1,000 stake, including a brokerage fee of about £5.

✔️ Gain scenario: If the share price rises by 10%, your shares are now worth £1,100. Result: +£100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on the price movement of Melrose Industries shares without physically owning them. You can use leverage—meaning you control a larger position with less capital. Instead of a direct commission, you pay the spread (the difference between buy and sell price) and overnight financing if you hold your position for more than a day.

CFD Position Gain Scenario

You open a CFD position on Melrose Industries shares with 5x leverage and a £1,000 deposit. This gives you market exposure of £5,000.

✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +£400 gain, on a stake of £1,000 (excluding fees).

Final advice

Before investing, always compare brokers' fees, trading conditions and platform features. Your choice between spot buying and CFD trading depends on your investment goals and risk tolerance. To help you select the best option for your needs, you will find a comprehensive broker comparison just below on this page.

Our 7 tips for buying Melrose Industries stock

The latest news about Melrose Industries

Melrose Industries shares gain 1.28% this week as technical buy signals strengthen across all key moving averages. In the last seven days, Melrose Industries stock has risen by 1.28%, outpacing the broader sector amid positive technical momentum. Moving averages for 20, 50, 100, and 200 days all indicate a buy, while the MACD remains firmly in positive territory, supporting renewed investor interest from the UK market.

Analyst consensus price target for Melrose Industries upgraded to 636.15 pence, signalling over 21% upside potential. Multiple UK institutional analysts have raised their 2025 price targets, now averaging 636.15 pence against the current 524 pence. This revised guidance reflects increased confidence in the company’s earnings trajectory, strategic transformation, and long-term partnership commitments with Airbus and Boeing.

Recent share buybacks support value and demonstrate management’s ongoing commitment to shareholder returns. In June 2025, Melrose Industries announced the continuation of regular share buyback programmes, further optimising its capital structure. These actions have provided concrete support to the share price, signalling management’s confidence in the business and offering direct benefit to UK-based shareholders through enhanced per-share value.

Long-term growth prospects bolstered by positive outlook for aerospace and defence spending in the UK and US. Melrose Industries stands to benefit from projected increases in defence budgets, both domestically and abroad, combined with the gradual recovery of civil aerospace activity post-pandemic. These sector developments align with the firm’s core business and underpin robust demand forecasts for its high-value aerospace components.

Strong operational results and innovation in advanced composites position Melrose Industries at the forefront of its sector. Annual revenues grew 3.5% in 2024, reaching £3,468 million, and operational efficiency initiatives continue to drive performance. The group’s leadership in lightweight composite and electric systems, combined with its established base in Birmingham, secures its strategic importance in the UK advanced manufacturing ecosystem.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.