Rolls-Royce

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