Rolls-Royce Holdings (RR/) Earnings: FY Profit View Reaffirmed Despite Missing Estimates

Rolls-Royce Holdings on Smartkarma

Analyst coverage of Rolls-Royce Holdings on Smartkarma highlights positive sentiments from top independent analysts like Baptista Research and αSK. Baptista Research’s report titled “Rolls-Royce Accelerates Engine Breakthroughs with £1 Billion ‘Time on Wing’ Revolution; What’s Next?” emphasizes the significant growth in operating profit to £1.7 billion and a notable rise in operating margin to 19.1% for the first half of 2025. Meanwhile, αSK’s insight, “Primer: Rolls-Royce Holdings (RR/ LN) – Sep 2025,” lauds the company’s turnaround under new leadership, driven by the Civil Aerospace aftermarket services rebound and strong performance in Defence and Power Systems divisions. Despite a positive outlook, there are concerns about the company’s elevated valuation and risks related to market cyclicality and supply chain pressures.

The analysis by Baptista Research further delves into Rolls-Royce’s recent achievements and challenges in their report, “Rolls-Royce’s Civil Aerospace Upgrades Double Engine Lifespan–Is This A Key Catalyst For The Future?” The report underscores the company’s progress across divisions and its transformation program aimed at enhancing competitiveness and resilience. Noteworthy positive aspects include a 50% increase in operating profit to GBP 1.7 billion, propelled by improvements in Civil Aerospace, Defence, and Power Systems. These reports collectively showcase a mix of optimism for Rolls-Royce Holdings amid acknowledgments of key challenges and valuation considerations, providing investors with valuable insights for informed decision-making.

A look at Rolls-Royce Holdings Smart Scores

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, known for manufacturing aero, marine, and industrial gas turbines, is positioned for a solid long-term outlook according to Smartkarma Smart Scores. The company scored high on growth and resilience factors, with a 5 out of 5 for both categories. This indicates a positive trajectory for expansion and a strong capacity to weather challenges and market fluctuations.

While the value and dividend scores for Rolls-Royce Holdings are moderate at 2, showing room for improvement in these areas, the overall momentum score of 4 suggests a promising trend in the company’s performance. Investors may view Rolls-Royce Holdings as a growth-oriented and robust player in the aerospace and industrial sectors, supported by its diversified portfolio and market presence.

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.
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