Rolls-Royce maintains outlook after strong start to 2025 across all divisions

Published 01/05/2025, 07:36
© Reuters.

Investing.com -- Rolls-Royce Holdings Plc (LON:RR) on Thursday  reported a strong start to 2025 across all divisions and reaffirmed its full-year forecast for profit and cash flow despite economic headwinds, the company said Thursday.

The British luxury car and an aero-engine manufacturer maintained its guidance for underlying operating profit and free cash flow between £2.7 billion and £2.9 billion, supported by improved operations and steady demand in key markets.

“We are creating a more resilient and agile Rolls-Royce (OTC:RYCEY) that is better equipped to respond to changes in the external environment,” chief executive Tufan Erginbilgic said in remarks at the company’s annual general meeting.

Civil Aerospace led performance, with large engine flying hours rising to 110% of 2019 levels. Aftermarket revenue grew on higher shop visit volumes. 

Certification of a new high-pressure turbine blade for the Trent (NSE:TREN) 1000, expected in the coming weeks, will double the blade’s service life. A 30% time-on-wing improvement for the Trent 1000 and Trent 7000 remains on track for delivery by year-end.

The Airbus A350-900, powered by an upgraded Trent XWB engine, received certification in April. Other aircraft programs, including the Gulfstream G800 and Dassault Falcon 10X, advanced through development.

In Defence and Power Systems, Rolls-Royce cited strong demand. It delivered the first AE 3007N engine to Boeing (NYSE:BA) for the MQ-25 refueling drone. 

Power Systems posted growth driven by demand from data centers and governments, with continued expansion in original equipment and services. 

Development of the next-generation mtu engine, due in 2028, is under way and targets a 20% performance improvement.

Rolls-Royce SMR, the company’s small modular reactor unit, received investment from Czech state utility ČEZ Group and advanced to Step 3 of the U.K. regulatory approval process.

The company also cited continued balance sheet strengthening, including £138 million in completed actions by March. Fitch upgraded its credit rating to BBB+, while Moody’s raised it to Baa2.

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