Rolls-Royce Delivers Latest Trading Update

In its latest trading update, Rolls-Royce reported promising developments across various sectors, particularly within Civil Aerospace, Defence, and Power Systems. Demand for large engines remains robust, showcasing a strong rebound as global travel policies evolve.

Strong Demand in Civil Aerospace

Rolls-Royce has secured substantial engine orders from notable airlines, including IndiGo and Malaysia Airlines. The trend continues with interest in the Trent XWB-97 powered Airbus A350F from customers in Greater China and the Asia Pacific region, such as Air China Cargo and Korean Air.

• Large engine flying hours increased by 8% year-on-year, reaching 109% of 2019 levels.
• Rolls-Royce received an Airbus supplier award for ‘Ramp up and Operational Excellence’, marking a significant achievement for engine manufacturers.

Engine Innovations and Improvements

The company is advancing its operational efficiency with several initiatives. The upgraded Trent 1000 HPT blade, certified in June, significantly enhances engine longevity. Moreover, further durability improvements for the Trent 1000 and Trent 7000 are on track for certification by the end of 2025, which is expected to increase their operational hours by an additional 30%.

Developments in Defence Sector

In the Defence segment, product demand continues to thrive. The Global Combat Air Programme (GCAP) announced an expanded partnership in September. This aims to speed up the development of next-generation power and propulsion systems.

• Successful tests of a combustor utilizing advanced additive layer manufacturing techniques have improved design and performance.
• The Republic of Türkiye and the UK committed to exporting 20 Eurofighter Typhoon aircraft powered by Rolls-Royce’s EJ200 engines.

Progress in Nuclear Energy

Rolls-Royce is contributing to Project Pele, a US government initiative for transportable microreactors. This partnership underscores the growing role of advanced nuclear energy applications in defence.

Power Systems: Robust Growth

The Power Systems sector reported strong revenue growth, driven by power generation demands, particularly from data centers and government projects. Development of a new generation engine is in progress, scheduled for service entry in 2028.

• A new fast-start gas generator is set to launch in 2026, targeting data centers pending grid connection.
• Successful testing of a 100% methanol high-speed marine engine marked a significant achievement in CO2 neutral propulsion.

Strengthening Operations and Financials

Rolls-Royce opened a global capability and innovation center in Bengaluru, India, enhancing corporate function support across the group. The company is committed to financial health, receiving a BBB+ rating upgrade from S&P Global in August.

As a part of its financial strategy, Rolls-Royce has repaid a $1 billion bond that matured in October. Progress is underway on a £1 billion share buyback, with £0.9 billion completed by the end of October.

The company will present its 2025 Full Year results on February 26, 2026, reflecting ongoing improvements and strategic advancements throughout the year.