- Rolls-Royce’s Civil Aerospace division exceeded expectations with adjusted revenue of GBP 4.79 billion against an estimate of GBP 4.62 billion.
- In the Defence division, adjusted revenue was slightly below expectations at GBP 2.22 billion, compared to the estimate of GBP 2.3 billion.
- The Power Systems division saw adjusted revenue of GBP 2.04 billion, surpassing the estimate of GBP 1.99 billion.
- Civil Aerospace achieved a significant adjusted operating profit of GBP 1.19 billion, well above the estimated GBP 686 million.
- Defence adjusted operating profit was GBP 342 million, exceeding the expected GBP 333.5 million.
- Power Systems recorded an adjusted operating profit of GBP 313 million, outperforming the estimate of GBP 243.5 million.
- Rolls-Royce achieved a free cash flow of GBP 1.6 billion, exceeding the estimate of GBP 1.19 billion.
- Rolls-Royce SMR is projected to be profitable and free cash flow positive by the year 2030.
- By the end of the year, improvements in Trent 1000 and Trent 7000 engines are expected to provide a 30% increase in time on wing benefit.
- The company has achieved cost savings of more than £850 million since 2022 and aims to exceed £1 billion by the end of the current year to mitigate inflationary pressures.
- Despite strong results, a slight decrease in operating profit is anticipated for the second half of 2025 due to several factors including a lower contribution from net contractual margin improvements.
- The company successfully navigated supply chain challenges and tariffs to deliver strong first half results.
- Market analysts’ recommendations on Rolls-Royce include 13 buys, 5 holds, and 2 sells.
A look at Rolls-Royce Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
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, a company known for manufacturing aero, marine, and industrial gas turbines, has received various Smartkarma Smart Scores that provide insight into its long-term outlook. With a perfect score in Growth and Momentum, the company seems to have a promising future in terms of expansion and market performance. This bodes well for investors looking for a company with strong potential for growth and positive market momentum.
While Rolls-Royce Holdings may lack in the Value category, its scores of 2 for Dividend and 3 for Resilience indicate stability and a commitment to rewarding shareholders. This mix of scores suggests a company that is actively working towards sustainable growth while also focusing on maintaining a resilient business model. Overall, Rolls-Royce Holdings‘ Smart Scores point towards a company with promising growth prospects, solid momentum, and a dedication to shareholder returns.
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.
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