GKN Aerospace owner Melrose warns of cost hit from plant incident, pauses buyback
XLI•Buyback paused as site recovery continues
Melrose, which supplies parts to aircraft makers Boeing and Airbus, paused its £175 million share buyback programme while awaiting clarity on the full financial impact of the incident.
The company also reported adjusted pretax profit of £282 million for the six months to June, up 18% from a year earlier, while revenue rose 10% to £1.87 billion. The incident reduced first-half revenue by £16 million and adjusted operating profit by £9 million.
CEO Peter Dilnot said on Friday that partial production has since resumed, and the company will continue to work closely with customers, regulators and other authorities to restore the site to full production in the second half. Melrose reiterated its outlook for the full year.
Incident to add costs in second half of 2026
July 31 (Reuters) - GKN Aerospace owner Melrose Industries on Friday said it expects additional costs of £25 million to £30 million ($33.6 million to $40.3 million) in the second half of 2026 after an incident at its Garden Grove facility in California in May.
Melrose had reported an overheating chemical tank at GKN Aerospace's Garden Grove facility, which triggered an emergency response and temporary evacuation orders.
