REG - Rolls-Royce Holdings - AGM Statement and Trading Update

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RNS Number : 9293G  Rolls-Royce Holdings plc  01 May 2025

 

 

1 May 2025

 

 

 

ROLLS-ROYCE HOLDINGS PLC AGM STATEMENT AND TRADING UPDATE

 

 

Rolls-Royce Holdings plc is holding its Annual General Meeting today. In his
address to shareholders, Chief Executive Tufan Erginbilgic will comment:

 

"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."

 

 

Trading update to 31 March 2025

 

We have had a strong start to the year, with all divisions performing well.
Despite the uncertainties associated with tariffs and continued supply chain
challenges, our 2025 guidance of £2.7bn-£2.9bn of underlying operating
profit and £2.7bn-£2.9bn of free cash flow remains unchanged. Year on year
improvements in profit and cash flow are largely driven by our actions and
strategic initiatives. Demand for our products and services also remains
strong across the Group.

 

In Civil Aerospace, LTSA large engine flying hours (EFH) grew to 110% of 2019
levels in the three months to 31 March, with strong aftermarket revenue growth
driven by higher shop visit volumes. Time on wing initiatives are progressing
to plan. Certification of the new HPT blade for the Trent 1000, which will
double the time on wing of this engine, is expected in the coming weeks and we
remain on track to deliver a further 30% time on wing improvement for the
Trent 1000 and Trent 7000 by the end of the year. The Airbus A350-900 with
Rolls-Royce's new Trent XWB-84 EP engine variant, which will improve fuel
consumption by more than 1%, was certified in April. In business aviation,
assembly of the first Pearl 10X powered Dassault Falcon 10X continued in the
period and, in addition, the Pearl 700 powered Gulfstream G800 was certified
in April.

 

In Defence, demand remains robust across our portfolio of products with strong
order intake. In addition, in April, we delivered the first AE 3007N engine to
Boeing for the MQ-25 program, the U.S. Navy's first aircraft carrier-based
unmanned air vehicle to be used for refuelling, intelligence and surveillance.

 

In Power Systems, strong revenue growth was supported by increased order
intake, with a book-to-bill ratio of 1.5x. Revenue growth was led by power
generation, driven by continued demand for back-up power generators for data
centres, and governmental, with growth in OE and services in both segments.
Development of our next generation engine, which is due to enter into service
in 2028, is progressing well. Testing of the first prototype engine has
commenced and the engine is on track to deliver a 20% improvement in power
output compared to the Series 4000 engine, with a higher power density.

 

In Rolls-Royce SMR, the Czech Republic state utility, ČEZ Group, made a
strategic investment into the business in March. We submitted our final tender
to Great British Nuclear in April and look forward to a decision in June. We
remain the only company in Step 3 of the UK Generic Design Assessment,
significantly ahead of the competition in the regulatory process.

 

We are continuing to strengthen our balance sheet, enabled by a more resilient
and growing cash delivery. Our efforts have been further recognised by the
credit rating agencies, who all hold us at investment grade with a positive
outlook, with upgrades to BBB+ by Fitch and to Baa2 by Moody's. We are making
good progress with our £1bn share buyback, having completed £138m by the end
of March.

 

Our 2025 Half Year results will be announced on 31 July 2025.

 

 

For further information, please contact:

 

Media

Richard Wray

Director of External Communications & Brand, Rolls-Royce plc

Tel +44 (0) 7810 850055

Richard.Wray@Rolls-Royce.com (mailto:Richard.Wray@Rolls-Royce.com)

 

Investors

Jeremy Bragg

Investor Relations Director, Rolls-Royce plc

Tel +44 (0) 7795 840875

Jeremy.Bragg@Rolls-Royce.com (mailto:Jeremy.Bragg@Rolls-Royce.com)

 

About Rolls-Royce Holdings plc

 

1.    Rolls-Royce is a force for progress; powering, protecting and
connecting people everywhere. Our products and service packages help our
customers meet the growing need for power across multiple industries; enable
governments to equip their armed forces with the power required to protect
their citizens; and connect people, societies, cultures and economies
together.

2.    Rolls-Royce has a local presence in 48 countries and customers in
over a hundred more, including airlines and aircraft leasing companies, armed
forces and navies, and marine and industrial customers.

3.    Through our multi-year transformation programme, we are building a
high-performing, competitive, resilient and growing Rolls-Royce. We are
building the financial capacity and agility to allow us to successfully
develop and deliver the products that will support our customers through the
energy transition.

4.    Annual underlying revenue was £17.8 billion in 2024, and underlying
operating profit was £2.46 billion.

5.    Rolls-Royce Holdings plc is a publicly traded company (LSE: RR., ADR:
RYCEY, LEI: 213800EC7997ZBLZJH69)

 

www.rolls-royce.com (http://www.rolls-royce.com)

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