Key facts
- Melrose Industries expects additional costs of £25 million to £30 million due to a May incident at its GKN Aerospace facility in California.
- The company has paused its £175 million share buyback program.
- Adjusted pretax profit rose 18% to £282 million for the six months to June.
- Revenue increased 10% to £1.87 billion in the same period.
- The incident reduced first-half revenue by £16 million and adjusted operating profit by £9 million.
Melrose Industries, the owner of GKN Aerospace, has warned of additional costs amounting to £25 million to £30 million in the second half of 2026 following an incident at its Garden Grove facility in California in May. The company reported an overheating chemical tank at the site, which triggered an emergency response and temporary evacuation orders.
As a result of the incident, Melrose has paused its £175 million share buyback program while it clarifies the full financial impact. The company supplies parts to aircraft manufacturers Boeing and Airbus.
Despite the incident, Melrose reported a 18% increase in adjusted pretax profit to £282 million for the six months ending June, with revenue rising 10% to £1.87 billion. The incident did reduce first-half revenue by £16 million and adjusted operating profit by £9 million.
CEO Peter Dilnot stated that partial production has resumed and the company is working to restore full production at the site in the second half of the year. Melrose reiterated its full-year outlook.