Rolls-Royce has reached a valuation exceeding £100bn for the first time in its 121-year history, with shares trading above 1,191p. The company is now the fifth most valuable on the London Stock Exchange, behind HSBC, AstraZeneca, Shell and Unilever.
The Derby and Filton-based aerospace group has seen its share price rise by nearly 110 per cent in 2025. The climb follows steady growth since the Covid-19 pandemic, with minor dips linked to geopolitical developments, including US tariff announcements and discussions over Ukraine.
The company reported an underlying pre-tax profit of £1.68bn for the first half of its financial year, up from £1.03bn in the same period of 2024. Underlying operating profit increased 50 per cent to £1.73bn, while statutory revenue rose from £8.86bn to £9.49bn. Statutory operating profit grew from £1.64bn to £2.07bn, and pre-tax profit reached £4.84bn. Underlying revenue rose from £8.18bn to £9.05bn.
In response to the strong performance, Rolls-Royce upgraded its guidance for 2025. The company now expects an underlying operating profit of £3.1bn-£3.2bn and free cash flow of £3bn-£3.1bn.
The share surge reflects investor confidence in Rolls-Royce’s aerospace and defence operations, alongside market reactions to recent shifts in global defence policy and strong early-year revenue growth of nearly £1bn.
