Highlights

  • Rolls-Royce Operating profit jumped 50.8% year-on-year in 1HFY25, supported by efficiency gains and operating leverage
  • Profit after tax increased 288.0% year-on-year in H1 FY25, supported by core earnings and finance income.
  • Civil aviation demand and higher-flying activity are expected to support margin progression through the 2026 cycle.

Rolls-Royce Holdings PLC (LSE:RR.) is a UK-headquartered engineering group listed on the FTSE 100 Index, best known for producing aircraft engines for large commercial planes, regional jets, and business aviation. The company is also a major supplier of high-speed reciprocating engines, integrated propulsion systems, and distributed energy solutions.

Financial Performance

For the first half of FY25 ended 30 June 2025, the company reported notable improvement in financial performance, underpinned by  revenue growth and enhanced operating efficiency. Revenue increased by 10.69% year-on-year to GBP 9,057 million, compared with GBP 8,182 million in H1 FY24, reflecting resilient demand and improved business momentum.

Operating profit rose  by 50.82% year-on-year to GBP 1,733 million in H1 FY25, highlighting effective cost management and operational leverage. As a result, the operating margin expanded to 29.0% in H1 FY25, signalling a sequential improvement in efficiency. Profit after tax recorded a  jump of 288.02% year-on-year, reaching GBP 4,408 million, supported by favourable core earnings and the contribution from non-recurring finance income, which boosted headline profitability.

In addition to earnings growth, the company’s liquidity position strengthened during the period. The quick ratio improved to 0.93x in H1 FY25, indicating better short-term liquidity and an enhanced capacity to meet near-term financial obligations.

Company Outlook

Global demand for civil aviation, along with increased flying activity and ongoing durability improvements, is expected to support steady margin growth and strong cash generation throughout the 2026 cycle.

Visibility in the defence segment continues to improve, supported by GCAP, Eurofighter exports, and various nuclear initiatives. These programs help reinforce long‑term revenue streams, maintain technological leadership, and strengthen earnings stability over the years.

Expansion in power systems—driven by data centres, small modular reactors, and gas‑powered generators—is set to contribute to more diversified earnings, a healthier balance sheet, share buybacks, and an enhanced credit profile.

Top 10 Shareholders

The top 10 shareholders collectively own about ~37.43% of the company's total shares. BlackRock Institutional Trust Company, N.A. and Causeway Capital Management LLC hold maximum stakes in the company at ~5.05% and ~4.98%, respectively.

Stock Information

RR. has moved up by ~3.35% in the last week while posting a gain of approximately 3.77% over the last three months. The stock has a 52-week high and 52-week low of GBX 1306.06 and GBX 562.00, respectively, and is currently trading above the average of 52-week high-low level.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 02 February 2026. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.