Rolls-Royce raises full-year profit forecast
Coinpaper
17h ago
Ai Focus
Rolls-Royce raised its full-year profit forecast, and its stock price rose on improved performance.
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Following the release of its first-half results, Rolls-Royce raised its full-year operating profit forecast. The company stated that improvements in its civil aviation, defense, and power systems businesses drove simultaneous growth in both earnings and cash flow.

In the first half of the year, the company's underlying operating profit was £2.5 billion, a 46% increase compared to the same period last year. Free cash flow rose to £2 billion, indicating continued improvement in operating performance.

The company raised its full-year underlying operating profit forecast from £4 billion to £4.2 billion to £4.7 billion to £4.9 billion. The new guidance is also higher than the market's previous estimate of approximately £4.2 billion.

The operating profit margin for the civil aviation business rose from 24.9% to 25.3%. The company stated that this change was driven by improved profitability in after-sales services, increased operational efficiency, and more favorable airline contracts.

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