Rolls-Royce has hailed a “strong performance across the Group” in a new trading update to 31 October 2025, as the company continues to progress its transformation programme.
Building further confidence in the firm’s guidance for 2025, Rolls-Royce is expecting to close the year with 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.
In Civil Aerospace demand remains strong with Rolls-Royce securing large engine orders from IndiGo, Malaysia Airlines, and Avolon so far in the second half of the year. The business is also seeing growing demand for the Trent XWB-97 powered Airbus A350F from customers in Greater China and the Asia Pacific region, including Air China Cargo and Korean Air.
In Defence, demand for Rolls-Royce’s products and services remains robust. In September, the Global Combat Air Programme (GCAP) consortium announced an expansion of a partnership to accelerate the development of power and propulsion systems. In October, the Republic of Türkiye and the UK signed an agreement to export 20 Eurofighter Typhoon aircraft to Türkiye, with an option for more in the future, which will be powered by Rolls-Royce’s EJ200 engines.
It follows the sale of the naval propulsors business to Fairbanks Morse Defense completing in July.
In Power Systems Rolls-Royce has noted continued strong order intake and revenue growth led by power generation, driven by data centres, and governmental.
Meanwhile, in August, Rolls-Royce SMR advanced to the final stage of the Swedish competition to select a nuclear technology partner. In the UK, where Rolls-Royce SMR was selected in June as the preferred technology provider by Great British Energy-Nuclear (GBE-N), commercial terms remain on track to be finalised later this year.
Chief executive Tufan Erginbilgic 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.”
