Rolls-Royce

The government will provide £1.25bn to Rolls-Royce to part-fund development of the UltraFan next-generation engine for single-aisle aircraft as part of a 10-year, £2.5bn R&D programme. The funding aims to secure a UK position on future narrow-body programmes, boost exports and support thousands of skilled jobs, but Rolls has not yet secured a slot on Airbus or Boeing narrow-body platforms. Success depends on winning a programme around 2030 and securing corporate partners, while the government will require strong guarantees on UK jobs and investment. » More on theguardian.com

At the Jefferies Global Industrials Conference, Rolls-Royce outlined its transformation into a more resilient, growth-oriented company. CEO Tufan Erginbilgiç said the restructuring increased profit by around 50% and eliminated AOG events, while the Defence division has acted as a growth driver with a 9% CAGR since 2023 and a 21% margin in the first half. The Power Systems division is targeting a 25% CAGR to 2030 driven by demand from data centers; long-term service contracts and broader product solutions are expected to support margins. Management cited supply-chain inflation, execution risks and geopolitical cost drivers as challenges, but sees growth opportunities in Civil Aerospace, Defence and Power Systems into the 2030s. » More on de.investing.com

Berenberg Bank has raised its target price for Rolls-Royce from 1,430 to 1,900 pence and has confirmed its buy rating. After strong half-year results, Rolls-Royce revised its full-year guidance upward and now expects adjusted operating profit of £4.7–4.9 billion. The company is benefiting from an upswing in aviation and renewed demand for nuclear technology. » More on finanzen.net

Rolls-Royce raised full-year guidance after stronger half-year results, with cashflow now seen at £3.8–4.0bn and operating profit at £4.7–4.9bn. The company is benefiting from defence contracts, growing demand for power systems from AI datacentres and potential future sales of small modular reactors. Management is pursuing a return to the narrowbody aircraft engine market and seeks government support, while the firm’s diversification underpins hopes it could rise further in FTSE rankings. » More on theguardian.com

Rolls-Royce reported H1 underlying operating profit of £2.5bn, up 46%, and revenue of £11.3bn, up over 24%. The company raised full‑year underlying operating profit guidance to £4.7–4.9bn and lifted free cash flow expectations to £3.8–4.0bn. CFO Helen McCabe said data‑center power orders grew more than 50% in H1 and highlighted increasing opportunities from higher defense spending under the UK and NATO plans. CEO Tufan Erginbilgic said the turnaround is expanding Rolls‑Royce’s portfolio beyond aerospace into power systems and defense, and shares rose following the results. » More on cnbc.com