Rolls-Royce eyes nearly £3bn profit despite tariffs
Rolls-Royce said it is confident it will hit underlying profit of nearly £3bn in 2025, despite ongoing tariff uncertainty.
The London-listed engineering giant on Thursday held a previously guided underlying profit range of between £2.7bn and £2.9bn. It is also looking at between £2.7bn and £2.9bn of free cash flow.
In a statement to markets, Rolls-Royce outlined strong demand in its aerospace and defence segments, key pillars of a remarkable share price rally in recent years.
Large engine flying hours in the three months ending March nearly doubled on pre-pandemic levels as travel demand booms globally.
Shares in Rolls-Royce have risen more than 90 per cent over the last 12 months, however Donald Trump’s liberation day announcement initially wiped off billions in value.
The stock rose nearly three per cent in early deals on Thursday following the update.
“Our transformation of Rolls-Royce is progressing strongly and we continue to expand the earnings and cash potential of the business,” chief executive Tufan Erginbilgic said.
“We are creating a more resilient and agile Rolls-Royce that is better equipped to respond to changes in the external environment. As a result, we have had a strong start to the year.”
Erginbilgic said that while global tariff increases had created a “degree of uncertainty” for the industry, the company expected to offset the impact through a range of mitigating actions.
“We are closely monitoring the potential indirect impact on economic growth and inflation, and will continue to take the necessary actions,” he added.
Half-year results will be announced on 31 July.