
- Rolls-Royce’s Civil Aerospace division exceeded expectations for 2025 with adjusted revenue of GBP9.04 billion, compared to an estimate of GBP8.68 billion.
- Defence division adjusted revenue also surpassed expectations at GBP4.52 billion, outstripping the estimated GBP4.39 billion.
- Power Systems division posted adjusted revenue of GBP4.27 billion, higher than the GBP4.17 billion anticipated.
- The New Markets division fell short with adjusted revenue at GBP3 million, significantly under the estimated GBP9.33 million.
- Adjusted operating profit for Defence was GBP644 million, beating the forecast of GBP636.4 million.
- Power Systems reported an adjusted operating profit of GBP560 million, surpassing the estimate of GBP484.7 million.
- The New Markets division reported an adjusted operating loss of GBP177 million, slightly above the expected loss of GBP176.8 million.
- Rolls-Royce aims for organizational design benefits of approximately Β£200 million annually by the end of 2025.
- The company achieved over Β£550 million in gross third-party cost savings by the end of 2024 and projects over Β£1 billion by 2025 to combat inflation.
- Free cash flow guidance for 2025 includes a cash impact of Β£150-200 million related to supply chain constraints.
- All core divisions showed significant performance improvements despite ongoing supply chain challenges.
- Rolls-Royce expects to deliver underlying operating profit and free cash flow within target ranges set previously, two years ahead of schedule.
A look at Rolls-Royce Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Rolls-Royce Holdings PLC, a company known for manufacturing aero, marine, and industrial gas turbines, has been given favorable Smart Scores in key areas. With a top score in growth, resilience, and momentum, the company appears to have a promising long-term outlook. These high scores suggest that the company is well-positioned for future development, indicating strong potential for expansion and robust performance amidst challenges. Although the value and dividend scores are lower, the exceptional ratings in growth, resilience, and momentum paint a positive picture for Rolls-Royce Holdings‘ overall trajectory in the market.
Rolls-Royce Holdings PLC is a leading manufacturer of a range of turbines for various industries, including civil and military aircraft. The group’s expertise extends to designing and installing power generation systems, marine propulsion equipment, and defense-focused machinery. Despite certain areas scoring lower, the company’s stellar ratings in growth, resilience, and momentum are indicative of a bright future ahead. These impressive scores highlight Rolls-Royce Holdings‘ strength and potential for significant advancement in the coming years, positioning it as a noteworthy player in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
π‘ Before itβs here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- β Unlimited Research Summaries
- β Personalised Alerts
- β Custom Watchlists
- β Company Analytics and News
- β Events & Webinars