Rolls-Royce has seen “strong” first half results, driven by continued progress in its multi-year transformation, despite challenges from the supply chain and tariffs.
Revenue passed £9bn, growing from an underlying revenue of £8.2bn in the same period last year.
Underlying operating profit rose by 50% to £1.7bn, reflecting the impact of strategic initiatives, operational effectiveness, and performance management. Meanwhile, underlying pre-tax profits increased to £1.7bn from £1bn.
The results have seen Rolls-Royce raise its full year 2025 guidance, now expecting £3.1bn-£3.2bn underlying operating profit and £3.0bn-£3.1bn free cash flow (previously £2.7bn-£2.9bn underlying operating profit and £2.7bn-£2.9bn free cash flow).
Tufan Erginbilgic, CEO, said: “Our multi-year transformation continues to deliver. Our actions led to strong first half year results, despite the challenges of the supply chain and tariffs. We are continuing to expand the earnings and cash potential of Rolls-Royce.
“We delivered continued strong operational and strategic progress in the first half of 2025. In Civil Aerospace, we achieved significant time on wing milestones and delivered improved aftermarket profitability. In Power Systems, where we now see further growth potential, we continued to capture profitable growth across data centres and governmental. In addition, Rolls-Royce SMR was selected as the sole provider of the UK’s first small modular reactor programme. We expect Rolls-Royce SMR to be profitable and free cash flow positive by 2030.
“A strong start to the year gives us confidence to raise our guidance for 2025. We now expect to deliver underlying operating profit of £3.1bn-£3.2bn and free cash flow of £3.0bn-£3.1bn. This builds further conviction in our mid-term targets, which include underlying operating profit of £3.6bn-£3.9bn and free cash flow of £4.2bn-£4.5bn. We see these targets as a milestone, not a destination, with substantial growth prospects beyond the mid-term.”
