Rolls-Royce has reported a sharp increase in annual profits, with underlying operating profit rising by £1 billion to £3.5 billion in 2025, a 40 per cent jump from the previous year. The engineering group also saw underlying revenues exceed £20 billion, up roughly a tenth from 2024.
The strong performance was driven by robust sales across its civil aerospace, defence, and power divisions. The company highlighted particular strength in defence, securing major contracts including orders worth over £1.5 billion from the UK Ministry of Defence and the US Department of War for EJ200 and AE 2100 engines.
New orders for Eurofighter aircraft engines from Italy, Germany, Spain, and an export agreement with Turkey are expected to sustain production into the 2030s. Meanwhile, demand for power generation for data centres surged, with revenues in that segment rising by more than a third.
Looking ahead, Rolls-Royce upgraded its mid-term outlook, now targeting underlying operating profit of between £4.9 billion and £5.2 billion by 2028, up from a previous range of £3.6 billion to £3.9 billion. Chief executive Tufan Erginbilgic attributed the growth to the company's transformation, which has delivered £600 million in cost savings since 2022.
Erginbilgic said the company had navigated challenges from supply chains to tariffs, and expected to deliver within its prior guidance range two years earlier than planned. He added that significant growth opportunities remain from existing businesses and new ventures.
