Rolls-Royce chief hails ‘strong performance’ as firm set to post operating profits of £3bn
The chief executive of Rolls-Royce has hailed a “strong performance” across the group as the firm said it was set to post operating profit of around £3bn.
Rolls-Royce said it had seen strong demand in both its Civil Aerospace and Defence segments, with large contracts in China boosting the group’s earnings.
In a trading update issued to the London Stock Exchange, Rolls-Royce chief executive, Tufan Erginbilgic, said that the positive results had come despite continued supply chain issues.
He said: "Strong performance across the Group, driven by our actions and strategic initiatives, was in line with our expectations.
“This builds further confidence in our Full Year 2025 guidance of underlying operating profit of between £3.1bn and £3.2bn and free cash flow of between £3.0bn and £3.1bn despite continued supply chain challenges.
“We are continuing to progress our transformation programme, delivering profitable growth, and further strengthening our balance sheet."
Rolls-Royce said it had seen “significant” large engine orders in the second half of the year so far, including from Malaysia Airlines and IndiGo.
The firm added that it was also seeing “growing demand” for its Trent XWB-97 powered Airbus A350F, notably from customers in Greater China and the Asia Pacific region including Air China Cargo and Korean Air.
The company is also set to benefit from October’s deal between the Republic of Türkiye and the UK, which will see the UK export 20 Eurofighter Typhoon aircraft to Türkiye, with an option to sign for more in the future. The jets are powered by Rolls-Royce’s EJ200 engines.
In its Power Systems segment, Rolls said that the testing of its next generation engine was continuing to “progress well”.
The engine is set to enter service in 2028 and primarily target the data centre backup power generation market.
The firm’s announcement comes as Energy SecretaryEd Miliband said he makes “no apologies” for the UK’s decision to choose Rolls-Royce to work on its first “small modular reactor” nuclear power station, despite US criticism.
The first-of-its-kind project will be built in North Wales by publicly owned Great British Energy-Nuclear, with £2.5bn in backing from the Government.
The reactors will be designed by Britain’s Rolls-Royce SMR, subject to final contract.
Miliband’s comments come after US Ambassador Warren Stephens issued a strong rebuke of the plans, saying Washington is “extremely disappointed” by the decision.
The ambassador had been pushing for a larger reactor at Wylfa, and US firm Westinghouse had reportedly presented plans to the UK Government to build a new gigawatt station at the site.