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RNS Number : 3190H  Rolls-Royce Holdings plc  13 November 2025

13 November 2025

 

 

ROLLS-ROYCE HOLDINGS PLC TRADING UPDATE

 

Rolls-Royce Holdings plc announced today its trading update to 31 October
2025. 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."

 

Trading update to 31 October 2025

 

In Civil Aerospace, demand remains strong with significant large engine orders
including those from IndiGo, Malaysia Airlines, and Avolon so far in the
second half of the year. We are also seeing growing demand for the Trent
XWB-97 powered Airbus A350F, notably from customers in Greater China and the
Asia Pacific region including Air China Cargo and Korean Air. Large engine
flying hours for the 10 months to 31 October 2025 grew by 8% year on year to
109% of 2019 levels. Our strong operational delivery was recognised by Airbus
with a supplier award in the 'Ramp up and Operational Excellence' category,
the first time that an engine maker has received this award. Our time on wing
initiatives are also progressing to plan. The upgraded Trent 1000 HPT blade,
which was certified in June and more than doubles time on wing for this
engine, is now being fitted to both new and existing engines in the MRO
network. Maturity testing has been completed on the next phase of durability
improvements for the Trent 1000 and Trent 7000. These improvements remain on
track to be certified by the end of 2025 and will increase time on wing of
these engines by a further 30%. In business aviation, the first Pearl 700
powered Gulfstream G800 was delivered in August, with the engine operating
seamlessly in service.

 

In Defence, demand for our products and services remains robust. In September,
the Global Combat Air Programme (GCAP) consortium announced an expansion of
the partnership to accelerate the development of power and propulsion systems.
In addition, as part of the GCAP programme, we successfully tested a combustor
developed with enhanced additive layer manufacturing techniques that will
result in an improved design and higher performance. 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 our EJ200 engines. Rolls-Royce's contribution to Project Pele, the
US Government's transportable microreactor project, is progressing to plan.
Project Pele is part of our growing collaboration in the US on nuclear energy,
where defence could be one of the first applications of advanced
microreactors. In July, the sale of the naval propulsors business to Fairbanks
Morse Defense completed, as noted at our Half Year results.

 

In Power Systems, continued strong order intake and revenue growth was led by
power generation, driven by data centres, and governmental. The development
and testing of our next generation engine is continuing to progress well, with
multiple engines tested in parallel in the period. This engine will enter
service in 2028 and primarily targets the data centre backup power generation
market, offering higher power density, lower emissions, and improved fuel
consumption compared to its peers. In October, we launched a new fast-start
gas generator product that will be available to customers from 2026. This
engine will offer prime power for data centre customers who are awaiting grid
connection and can later be switched to backup power generation once the data
centre is connected to the grid. In marine, we successfully tested the first
100% methanol high-speed marine engine in the period, a major milestone for
our CO2 neutral propulsion system.

 

In August, Rolls-Royce SMR advanced to the final stage of the Swedish
competition to select a nuclear technology partner, with Vattenfall moving
ahead with small nuclear options only. 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. Rolls-Royce SMR also entered the US regulatory process, a critical
step to paving the way for additional jobs and investment potential in the US.

 

We remain committed to driving efficiency and simplification across
Rolls-Royce. As part of our Group Business Services (GBS) strategy, we opened
a global capability and innovation centre in Bengaluru, India, that will
support key global corporate functions across the Group.

 

We are continuing to strengthen our balance sheet, enabled by a growing cash
delivery. Our efforts have been recognised by the credit rating agencies, who
all hold us at investment grade, with an upgrade to BBB+ by S&P Global in
August. As planned, we repaid a $1bn bond that matured in October.

 

We are making good progress with our £1bn share buyback, having completed
£0.9bn at the end of October.

 

Our 2025 Full Year results will be announced on 26 February 2026.

 

 

For further information, please contact:

 

Investors

Jeremy Bragg

Head of Investor Relations, Rolls-Royce plc

Tel +44 (0) 7795 840875

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

 

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)

 

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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