Trends-UK

Rolls-Royce: FTSE 100 giant eyes major profit boost

Thursday 13 November 2025 7:32 am
 |  Updated: 

Thursday 13 November 2025 8:23 am

Share

Rolls-Royce was the second best performer in the FTSE 100 in 2024.

FTSE 100 giant Rolls-Royce said it expects profit for the full-year to be 26 per cent higher than the previous financial year after a hefty boost from its civil aerospace and defence divisions.

The Derby-headquartered group is eyeing an operating profit of £3.1bn to £3.2bn after upgrading its earlier guidance of £2.7bn to £2.9bn.

This would mark a major jump from the £2.5bn scored in the 2024 financial year.

The London-listed has benefited from tailwinds in the recovery of global air travel, which has bolstered its civil aerospace division, whilst heightened geopolitical tensions have led to governments increasing spending providing steady demand for its defence arm.

Large engine flying hours in the ten months to 31 October grew eight per cent year-on-year whilst soared 109 per cent above pre-COVID levels.

The firm has also secured a pipeline of new orders for engine manufacturing from the likes of IndiGo, Malaysia Airlines and Avolon.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “Rolls-Royce continues to cruise above the clouds, with its third-quarter update showing little sign of turbulence.

Read more

Rolls-Royce: Losses widen at FTSE 100 giant’s SMR division

He added: “Margins are improving thanks to contract renegotiation, operational efficiencies, and part upgrades, which are improving the time its engines spend on wing. All of this is helping Rolls-Royce convert the increased flying hours and revenue into profits.”

Rolls-Royce takes on UK nuclear contract

In defence, the business said the UK and Türkiye agreement – signed in October – would allow it to export 20 Eurofighter Typhoons, ensuring guaranteed engine sales and a long-term service contract.

Earlier this year, a division of Rolls-Royce was selected to be the UK’s provider of small modular reactor (SMR) technology.

Rolls-Royce SMR, which is co-owned by the FTSE 100 giant and Czech power company CEZ, was named to build three units in the UK in a move which the firm said would “generate employment, boost the supply chain and generate economic growth, including through the capture of significant export opportunities”.

Shares in Rolls-Royce rose on the London Stock Exchange to pass the 900p mark for the first time in its history following the news.

The firm’s stock is up over 95 per cent for the year-to-date closing at 1,151.50p on Wednesday.

Read more

FTSE 100 Live: Economy grows 0.1 per cent; Rolls-Royce eyes profit jump

Similarly tagged content:

Sections

Categories

People & Organisations

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button