Rolls-Royce ready to update on trading after profits jump

ROLLS-ROYCE will report back on the latest steps in its impressive turnaround tomorrow as a boom in defence spending has helped propel the stock to record highs in 2025.

- SION BARRY

Opening of Rolls-Royce Submarines' Cardiff satellite office, from left: Steve Cartier, president of Rolls-Royce Submarines; Eluned Morgan, First Minister of Wales; Jo Stevens, Welsh Secretary and MP for Cardiff East and Commodore Elton R Sharkey, director of nuclear propulsion, Submarine Delivery Agency

The group hiked its earnings outlook in July, after seeing strong demand for engines offset supply chain challenges and tariff woes.

Half-year underlying operating profits jumped by 50% to £1.7bn for the first half of 2025, helping it raise its full-year forecast to between £3.1bn and £3.2bn.

It marked a significant upgrade after previously pointing towards profits between £2.7bn and £2.9bn.

Rolls, which makes engines used in large Boeing and Airbus planes, said it was supported by a strong performance in its large engines business, as well as margin improvements on contracts.

Its performance is set against a backdrop of higher global defence spending because of the uncertain geopolitical environment, as well as a revival in international travel since the pandemic.

While its second-half profit performance is not expected to be quite as strong as the first, tomorrow's update is likely to show continued success in the long-term transformation plan first laid out by the company in 2023.