London, Feb 19, 2026, 09:36 GMT — Regular session
- Melrose dipped roughly 2.3% at the open, retracing some of Wednesday’s gains.
- Company reported a new share buyback carried out on Feb. 18
- Attention swings to the full-year results expected out next week.
Shares of Melrose Industries (MRO.L) slipped 2.3% to 666.4 pence on Thursday, as the aerospace supplier’s latest buyback announcement failed to reverse some of the morning’s pressure. Melrose reported picking up 88,866 shares on Feb. 18 at an average price of 675.4407 pence apiece, with the repurchased stock headed to treasury. That puts Melrose’s treasury stash at 58,191,159 shares, and leaves 1,253,284,162 shares in issue, excluding those held back.
The timing’s key here, with shares bumping up against the high end of their 52-week band—a spot where reversals can snap back hard if the trade gets too popular. Melrose closed Wednesday at 681.8 pence, then hovered around 665.6 pence on Thursday. The 52-week spread runs from 376.0 pence up to 685.0 pence.
The stock finished Wednesday up 12 pence, a 1.79% gain for the session, data from the company’s investor site show. That jump faces pressure now—the buyback is supposed to offer support, but so far it’s just theoretical.
On Feb. 17, Melrose disclosed a buyback of 135,119 shares, picking them up at an average price of 655.9062 pence—individual trades ranged from 648.80 to 664.60 pence. These buyback updates have become almost routine for the company, appearing nearly every day.
Buybacks reduce the share count, which can bump up earnings per share in the long run. Still, the order book stays the same. With aerospace suppliers, investors usually focus on the cycle: production pace, delivery numbers, and whatever news comes out of the big engine and airframe makers from week to week.
The shares kicked off at 672.2 pence—down from Wednesday’s 681.8 pence close—signaling a weaker tone from the opening bell.
Citi isn’t budging from its “buy” call, bumping the target price up to 7.63 pounds as of Feb. 18, the latest analyst table from Investing.com shows. The bank’s optimism? It comes down to cash flow and hopes for an aerospace cycle upswing—though not all analysts are as bullish. Investing.com
But the downside isn’t hard to imagine here. Civil aerospace build rates slip, or supply-chain kinks reappear and drive costs higher—suddenly, “next year” margin promises lose steam. The market could flip, pricing in execution risk all over again.
Melrose’s full-year numbers drop Feb. 27. Investors, of course, want to hear fresh guidance—and any hint about how much longer the buybacks will keep running.
