Rolls-Royce has hailed “a strong start to the year,” with all divisions performing well.
In a new trading update the Derby firm highlighted that despite uncertainties associated with tariffs and continued supply chain challenges, 2025 guidance of £2.7bn-£2.9bn of underlying operating profit and £2.7bn-£2.9bn of free cash flow remains unchanged.
The company noted that demand for its products and services remains strong across the group.
“We are continuing to strengthen our balance sheet,” Rolls-Royce added, “enabled by a more resilient and growing cash delivery…. We are making good progress with our £1bn share buyback, having completed £138m by the end of March.”
The news follows Rolls-Royce submitting its final tender to Great British Nuclear in April.
The business is holding its Annual General Meeting today (1 May). In his address to shareholders, Chief Executive Tufan Erginbilgic will say: “Our transformation of Rolls-Royce is progressing strongly and we continue to expand the earnings and cash potential of the business.
“We are creating a more resilient and agile Rolls-Royce that is better equipped to respond to changes in the external environment. As a result, we have had a strong start to the year.
“The recently announced global tariff increases have created a degree of uncertainty for the industry. We expect to offset the impact of announced tariffs on our business through the mitigating actions we are taking. We are closely monitoring the potential indirect impact on economic growth and inflation, and will continue to take the necessary actions.
“Good progress on our transformation and the actions we are taking give us confidence in our guidance for 2025 of £2.7bn-£2.9bn of underlying operating profit and £2.7bn-£2.9bn of free cash flow.”
