Rolls-Royce Raises Full-Year Guidance Amid Strong Demand Across Civil Aerospace, Defense, and Power Systems
Rolls-Royce reported strong first-half results on Thursday, leading to an upward revision of its full-year profit and cash flow guidance. The FTSE 100 company recorded a 46% increase in underlying operating profit year-over-year to £2.5 billion ($3.3 billion), with revenue rising over 24% to £11.3 billion. Rolls-Royce now expects between £4.7 billion and £4.9 billion for full-year underlying operating profit, up from previous guidance of £4 billion to £4.2 billion. The company is benefiting from two major investment trends: increased defense spending and the expansion of AI-driven data centers. CFO Helen McCabe noted that orders in its data center power business grew more than 50% during the first half due to rising demand for on-site backup solutions amid grid constraints. Rolls-Royce also highlighted long-term opportunities linked to U.K. and NATO defense investment plans. Shares of Rolls-Royce rose as much as 6%, reflecting investor confidence in its performance and future outlook.
Tickers: $RR.
Topics: AI data centers civil aerospace defense spending power systems