GKN Aerospace owner Melrose cuts 2025 revenue on supply chain issues, shares drop

Branding is seen outside the headquarters of GKN in Redditch·Reuters
Reuters
1-min read
In this article:

Melrose, the owner of aerospace parts maker GKN Aerospace, cut its 2025 revenue outlook on Thursday due to supply chain challenges, sending its shares down 6%.

The company cut its 2025 revenue estimate to 3.8 billion pounds, from 4 billion pounds previously, implying a year-over-year growth of 1%-5%.

However, it maintained its profit guidance.

Melrose has recovered strongly from the pandemic, with a revenue growth of 17% last year. But the recent crisis at Boeing and production troubles at Airbus has tempered industry expectations of a faster growth rate.

Melrose, which spun off its auto and other businesses last year to become a pure-play aerospace supplier, reported an adjusted pre-tax profit of 204 million pounds for the first six months of 2024, higher than the 134 million pounds reported last year.

(Reporting by Yamini Kalia in Bengaluru; Editing by Savio D'Souza)