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Highlights

  • RR's underlying operating profit rose 50.8% to GBP 1,733 million in H1 2025, compared to GBP 1,149 million in H1 2024
  • Group revenue increased 10.7% YoY to GBP 9,057 million
  • Free cash flow improved to GBP 1,582 million, up from GBP 1,158 million in the prior corresponding period

Rolls-Royce Holdings plc (LSE:RR) delivered a significant uplift in profitability in the first half of 2025, driven by margin expansion across its Civil Aerospace, Defence, and Power Systems businesses. Group revenue increased by 10.7% year-on-year to GBP 9,057 million, while underlying operating profit surged 50.8% to GBP 1,733 million. This resulted in a 510 basis point improvement in the Group's underlying operating margin to 19.1%.

Rolls-Royce is a global industrial technology company headquartered in the UK, with core operations in aerospace propulsion and energy systems. The company’s results also reflected robust free cash flow generation of GBP 1,582 million, up from GBP 1,158 million a year ago. Basic underlying earnings per share nearly doubled to 15.74 pence, compared to 8.95 pence in H1 2024.

In Civil Aerospace, operating profit rose to GBP 751 million (H1 2024: GBP 405 million), with an operating margin of 15.3%. This was supported by increased OE widebody deliveries and a 24% rise in engine flying hours. The Defence segment posted an operating profit of GBP 288 million (H1 2024: GBP 260 million), while Power Systems recorded GBP 270 million in profit, up from GBP 125 million.

Statutory profit before tax rose to GBP 1,397 million, up from GBP 1,239 million, while reported profit attributable to ordinary shareholders came in at GBP 1,185 million. The Group also reduced net debt, with reported net cash improving to GBP 1,084 million from GBP 373 million at December 2024.

Looking ahead, the company reaffirmed full-year guidance for 2025, including underlying operating profit between GBP 2.5 billion and GBP 2.8 billion, and free cash flow of GBP 1.7 billion to GBP 1.9 billion. Return on capital employed reached 16.9%, reflecting stronger operating performance and capital discipline. Rolls-Royce also reported a 14% increase in R&D spend to GBP 388 million.

Capital expenditure in the first half was GBP 271 million, and full-year expectations remain between GBP 700 million and GBP 800 million. The Group remains focused on investing in sustainable propulsion technologies and improving long-term resilience through cost efficiencies and simplification initiatives.

Rolls-Royce shares were trading 8.20% higher at GBX 1,069.00 per share as of 31 July 2025.