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Https://www.morningstar.co.uk/uk/news/264698/us-uk-trade-deal-how-have-uk-stocks-reacted.aspx

Shares in fellow aerospace firm Melrose, the parent company of GKN Aerospace, are up 7% over five days at 470p. But they are still significantly below Morningstar’s fair value estimate of 800p.

Https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-u-s-uk-reach-historic-trade-deal/

It maximizes the competitiveness and secures the supply chain of U.S. aerospace manufacturers through preferential access to high-quality UK aerospace components.

Lol, games.

RBC have been complementary.

Kepler Cheuvreux upgrade today.

Https://www.ft.com/content/fe7ee826-ec19-4aee-bd36-139e72bc36ad

GE are doing well.

Another one

https://www.artisanpartners.com/content/dam/documents/monthly-commentary/vr/2025/mar/ARTIX-APDIX-MCommentary-0325-vR.pdf

Stock selection in the industrials sector reduced relative returns. British aerospace supplier Melrose Industries fell sharply despite reporting robust 2024 results, with annual adjusted profit up 42%. Increasing demand, particularly within its lucrative aftermarket services, and continued share buybacks drove the strong performance. While the company reaffirmed its 2025 guidance, including cash flow targets, concerns over rising costs and potential global tariffs pressured its shares, along with those of other UK manufacturers. We remain confident that Melrose can navigate these macroeconomic headwinds and leverage its strong position in the industry to continue growing profits.

Melrose have fingers in more pies than Boeing plus Boeing have more markets than China.

At least Blackrock were positive

https://www.investegate.co.uk/announcement/prn/blackrock-income-and-growth-investment-trust--brig/portfolio-update/8835309

Changes:

During the period, we purchased BAE, Melrose and Rolls Royce. The putative redrafting of global alliances has prompted a significant rethink by European countries of their plans for defence spending. President Trump's rhetoric has led to seismic shifts within NATO and Europe's fundamental shift in its fiscal approach, led by Germany's commitment, in echoes of the eurozone crisis, to spend `whatever it takes' to underpin Europe's independence. We believe these holdings will be beneficiaries of such an increase in defence expenditure.

Https://www.asdnews.com/news/defense/2025/04/07/gkn-aerospace-secures-threeyear-contract-with-boeing-c17-fan-blade-repairs

Horrific. I keep having to replay this interview regarding tariffs for my own sanity. https://www.bloomberg.com/news/videos/2025-03-06/melrose-industries-ceo-peter-dilnot-tariffs-not-a-threat

So the audited annual report was published yesterday. The drop from £7 makes little sense.

It’s ridiculously volatile. Games

Why is it so low?

Https://www.melroseplc.net/media/x4vfx12j/melrose_bofa_presentation_final.pdf

So much for the buy rating from investors chronicle…

They have a pretty good view of free cash flow hence the buybacks and dividends. Long term contracts with blue chip customers (rolls, pratts, airbus, bae) some include royalties (RRSPs) the accounting of which have been explained by the company in a booklet published last year (like rolls did with their long term service agreements).

Barclays raises

Not really a lot to know. Results were good.

Yet to find a definitive answer for this. Some articles regurgitate old explained issues, debt is offset by growing free cash flow, some suggest profit taking after a decent run. Most analysts maintain overweight status, the 30%+ move seems erratic to say the least, esp given the improved civil and defence environment.