GKN Aerospace’s owner, Melrose, has released its forecast for 2025, stating that the lower-than-expected figures are due to ongoing supply chain issues. Following the announcement, the company’s shares dropped by 12%.
Today, Melrose projected that its revenue for 2025 will reach between 3.55 billion and 3.70 billion pounds, despite initially forecasting profits of around 3.77 billion. The aerospace parts supplier’s earnings report attributed the decline to “growth moderated by ongoing industrywide supply chain issues, which have had a greater impact on Structures.”
Melrose’s CEO, Peter Dilnot, told investors: “Melrose delivered a strong 2024 performance driven by robust industry demand, ongoing aftermarket growth and the impact of extensive business improvement actions. This was achieved against the backdrop of ongoing industry-wide supply chain issues.”
Moving forward, the CEO said, “We are well positioned for further progress in 2025, including the expected delivery of substantial free cash flow, despite ongoing industry challenges.”
Melrose did not raise concerns about potential trade tariffs in its forecast; however, Dilnot addressed reporters on the issue, stating that any impact on the company as a whole was likely to be “pretty small.”
“If they (tariffs) land as they do today and they stick, in the context of a group that’s going to generate 700 million (pounds) of operating profit, it’s pretty small and it really impacts the flow of material between Mexico, where we have quite a large operating base, and into the US,” he commented.
By CEO NA Editorial Staff
