Rolls-Royce Reports Strong Half-Year Results, SMR Division Generates Revenue

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Rolls-Royce Reports Strong Half-Year Results, SMR Division Generates Revenue

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Rolls-Royce announced robust financial results for the first half of 2026, with underlying revenue climbing to £11.3 billion, a 26% increase compared to the same period last year. Operating profit saw an even more significant rise of 46%, reaching £2.5 billion, and the operating margin expanded to 22.5%. This strong performance has led Rolls-Royce to raise its 2026 underlying operating profit guidance to between £4.7 billion and £4.9 billion, up from the previous forecast of £4 billion to £4.2 billion. Free cash flow guidance was also increased to £3.8 billion to £4.0 billion.

A notable development in these results is the Rolls-Royce SMR division, which generated its first underlying revenues, totaling £5 million. Rolls-Royce SMR was established to develop factory-built nuclear power plants, each designed to generate 470 megawatts of low-carbon energy, sufficient to power approximately one million homes for at least 60 years. The company has been actively pursuing SMR deployment, having been shortlisted by the UK government as a potential SMR provider and selected by Vattenfall in Sweden to potentially deploy a fleet of SMRs. Rolls-Royce SMR is also partnering with the ČEZ Group for SMR deployment in the Czech Republic. In April 2026, Rolls-Royce secured up to £599 million from Britain’s national wealth fund to support the design of SMRs at Wylfa.

While the SMR division’s revenue is currently a small portion of the company’s total, Rolls-Royce’s CEO, Tufan Erginbilgic, noted in August 2026 that 470-megawatt SMRs are increasingly aligning with the power demands of large data centers, potentially expanding their market beyond traditional grid supply. The company’s SMR technology is also progressing through regulatory assessments, having completed Step 2 of the UK’s Generic Design Assessment in July 2024 and moving into the third and final step.

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