Rolls-Royce Reports Strong First-Half 2026 Results, Raises Full-Year Guidance
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Rolls-Royce Reports Strong First-Half 2026 Results, Raises Full-Year Guidance
- Rolls-Royce reported a 46% surge in underlying operating profit to £2.5 billion in the first half of 2026, driven by robust performance across all divisions.
- CEO Tufan Erginbilgić highlighted the company's transformation program, which has led to significant operational and financial progress, prompting a raised full-year guidance for 2026.
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Rolls-Royce Holdings plc announced strong first-half 2026 results on July 30, 2026, showcasing substantial growth in revenue, profit, and cash flow across its Civil Aerospace, Defence, and Power Systems divisions. The company’s underlying operating profit increased by 46% to £2.5 billion, with revenue reaching £11.2 billion, an increase of 24% organically compared to the prior-year period. Operating margin expanded to 22.5%, up 3.1 percentage points. Free cash flow also saw a significant rise, climbing 24% to £1.96 billion.
The strong performance led management to raise its full-year 2026 guidance, with underlying operating profit now expected to be between £4.7 billion and £4.9 billion, and free cash flow projected to be between £3.8 billion and £4.0 billion. These revised figures are notably higher than previous estimates, reflecting confidence in sustained demand and operational improvements.
Growth was particularly strong in the Civil Aerospace division, which saw a 29% increase in revenue to £6.186 billion, driven by aftermarket performance and increased engine deliveries. The Power Systems division delivered the strongest profit growth, with operating profit jumping 72% to £528 million, largely due to robust demand from data centers and governmental contracts. Defence revenue also increased by 17% to £2.5 billion, with operating profit up 57%.
CEO Tufan Erginbilgić emphasized that the company’s multi-year transformation program is continuing to deliver significant improvements, positioning Rolls-Royce as a high-performing and resilient business. The company also announced an interim dividend of 6.0 pence per share and is on track with its £2.5 billion share buyback program for 2026.