London, Jan 19, 2026, 11:10 (GMT) — Regular session
- Melrose shares fell about 1.1% in late morning trading, despite the company unveiling a new buyback plan
- A regulatory filing showed the aerospace group bought back 141,464 shares on Friday
- Investors are weighing buybacks as fresh trade-tariff risks loom and earnings dates approach
Shares of Melrose Industries (MRO.L) slipped on Monday, even after the aerospace supplier announced a fresh round of share buybacks, as risk appetite faded across London markets.
Melrose shares fell 1.06% to 634.0 pence by 10:54 a.m., down 6.8 pence on the day. The company plans to announce its full-year results on Feb. 27. (Melrose)
The timing couldn’t be more critical. The buyback provides steady backing for the shares, but it comes on a day when traders are pulling back from UK and European stocks amid fresh trade tensions and a broader sell-off in cyclicals.
Melrose disclosed on Monday that it bought 141,464 ordinary shares on January 16, at prices ranging from 633.6 pence to 640.6 pence each. The volume-weighted average price was 637.8416 pence. The company said these shares will be held in treasury, not canceled, pushing treasury stock to 54,955,190. That leaves 1,256,520,131 shares in issue, excluding the treasury shares. (Investegate)
Share buybacks lift earnings per share by cutting the number of shares outstanding, though the effect accumulates gradually. The scale depends on how long the buybacks run and how much cash a company puts into them.
The FTSE 100 fell 0.6% by 10:38 GMT, pressured after U.S. President Donald Trump warned of tariffs on Britain and seven other European nations over a Greenland dispute, Reuters reports. Yet, the aerospace and defence sector bucked the trend, rising 0.4%. (Reuters)
Melrose’s outlook is mixed. Buybacks could cushion some of the drops, but the stock stays linked to the wider industrial sector and remains exposed to macroeconomic shocks.
Investors will be watching next month’s report closely, not just for updates on capital returns but for clues on how management plans to handle demand, pricing, and production rates in its aerospace ventures.
A major risk lies in trade policy news turning into actual cost increases. Should tariffs go up, cross-border supply chains could be thrown off balance, pushing customers to cut back on spending—usually hitting suppliers in the process.
Investors are focused on the full-year results due Feb. 27. Watch Feb. 1 closely—that’s when the threatened tariffs could take effect. Then June 1 looms, with potential tariff hikes if negotiations stall.
