Rolls-royce Holdings Plc · LSE:RR.
Rolls-royce — FY2025 Earnings Presentation
24 slides from Rolls-royce's earnings presentation, February 2026
Slide 1: Full Year Results 2025
FULL YEAR RESULTS 2025 The information in this document is proprietary and confidential to Rolls-Royce and is available to authorised recipients only – copying and onward distribution is prohibited other than for the purpose for which it was made available.
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This announcement contains certain forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, all statements that express forecasts, expectations and projections with re
Slide 3: Tufan Erginbilgic, Chief Executive Officer
01 TUFAN ERGINBILGIC Chief Executive Officer © 2026 Rolls-Royce. Not Subject to Export Control
Slide 4: Strong 2025 results; upgraded mid-term targets; £7-9bn share buyback 2026-2028
STRONG 2025 RESULTS; UPGRADED MID-TERM TARGETS; £7-9BN SHARE BUYBACK 2026-2028 Transforming Rolls-Royce into a high performing, competitive, resilient, and growing business ▪ Strong financial performance and strategic progress in 2025 ▪ 2026 guidance delivers previous mid-term operating profit two y
Slide 5: Significantly improved financial performance
SIGNIFICANTLY IMPROVED FINANCIAL PERFORMANCE A step-change in performance over the past three years 2022-2025 Group operating profit improvement 2025 Group key financial metrics +£2.8bn growth Operating margin Free cash flow Return on capital £3.5bn 17.3% £3.3bn 18.9% 5.1% in 2022 £0.5bn in 2022 4.9
Slide 6: Continued strategic progress
CONTINUED STRATEGIC PROGRESS Contract and LTSA margin improvement across in-production Cash value creation due to LTSA margin improvement across engines in-production engines +19pts c.80% +2pts +8pts c.25% +28pts 2022 2025 2028 2032 2035 2022 2025 2028 2035 Contract margin as at Feb 2025 Contract ma
Slide 7: Continued strategic progress
CONTINUED STRATEGIC PROGRESS 1. Portfolio 2. Strategic 3. Efficiency & 4. Lower carbon choices & initiatives simplification & digitally enabled partnerships businesses • Strategic investment by ČEZ • Growing Civil LTSA margins 1 • £0.6bn of Efficiency & • Rolls-Royce SMR — Group in Rolls-Royce SMR S
Slide 8: Full Year 2026 Guidance
FULL YEAR 2026 GUIDANCE Delivering another year of significant progress Operating profit Free cash flow . . £4.0-4.2bn £3.6-3.8bn 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 Civil Aerospace drivers Large engine EFH 115-120% of 2019 Total OE deliveries 550-600 Total shop visits 1,480-1,550 © 20
Slide 9: Upgraded mid-term targets
UPGRADED MID-TERM TARGETS Based on a 2028 timeframe Operating profit Operating margin Free cash flow Return on capital . . £5.0-5.3bn . 23-26% £4.9-5.2bn £4.0-4.2bn 18-20% £3.6-3.8bn 2022 2023 2024 2025 2026 Mid- 2022 2023 2024 2025 Mid- 2022 2023 2024 2025 2026 Mid- 2022 2023 2024 2025 Mid- term te
Slide 10: Expanding earnings potential
EXPANDING EARNINGS POTENTIAL Delivering the next phase of our Transformation 2025-2028 Group operating profit improvement Strategic initiatives driving earnings CIVIL AEROSPACE . +£1.4-1.7bn growth £4.9-5.2bn 2025 Widebody Business aviation Portfolio / Mid-term Other DEFENCE 2025 Transport Combat Su
Slide 11: Helen McCabe, Chief Financial Officer
02 HELEN McCABE Chief Financial Officer © 2026 Rolls-Royce. Not Subject to Export Control
Slide 12: 2025 Full Year Underlying Results
2025 FULL YEAR UNDERLYING RESULTS Underlying results £m 2025 2024 Organic Change1 Organic Change %1 Strong results with every division delivering Revenue 20,059 17,848 +2,490 +14% Gross profit 5,126 4,091 +1,073 +26% Gross margin % 25.6% 22.9% +2.4pts Operating profit 3,462 2,464 +1,005 +38% Operati
Slide 13: Civil Aerospace
CIVIL AEROSPACE Underlying results 2025 2024 Organic Change Organic Change % £m KEY POINTS Revenue 10,382 9,040 +1,326 +15% • 15% revenue growth, 41% profit growth Gross profit 2,675 1,990 +679 +34% • Higher large engine aftermarket profit Gross margin % 25.8% 22.0% +3.7pts across LTSA and time and
Slide 14: Defence
DEFENCE Underlying results 2025 2024 Organic Change Organic Change % £m KEY POINTS Revenue 4,772 4,522 +369 +8%1 • Strong order intake with growing demand for Gross profit 933 908 +40 +4% mature and new products Gross margin % 19.6% 20.1% -0.8pts • Profit growth in transport OE, including internatio
Slide 15: Power Systems
POWER SYSTEMS Underlying results 2025 2024 Organic Change Organic Change % £m KEY POINTS Revenue 4,892 4,271 +794 +19% • 19% revenue growth, 60% profit growth Gross profit 1,522 1,199 +356 +30% • Strong power generation growth driven Gross margin % 31.1% 28.1% +2.6pts by data centres Operating profi
Slide 16: Summary Funds Flow
SUMMARY FUNDS FLOW £m 2025 2024 Change Operating profit 3,462 2,464 998 KEY DRIVERS OF HIGHER YEAR ON YEAR FCF Net investments1 (257) (282) 25 • Higher operating profit Movement in Civil LTSA balance, net of RRSAs2 572 691 (119) • Similar net investments across a more Working capital, excluding Civi
Slide 17: Sustainable and growing free cash flow
SUSTAINABLE AND GROWING FREE CASH FLOW Driving sustainable high-quality cash flow to the mid-term £5.0–5.3bn mid-term Free Cash Flow (FCF) Improvement of FCF to mid-term driven by £1.7-2.0bn FCF growth • Operating profit growth of £1.4-1.7bn • Civil net LTSA balance growth £5.0-5.3bn • Disciplined i
Slide 18: Capital Framework
CAPITAL FRAMEWORK Growing shareholder distributions and investing for growth Total shareholder distributions 2026-2028 • Reduced gross debt >75% of FCF returned STRONG 1 to shareholders 2 BALANCE • Net cash of £1.9bn at Dec 2025 SHEET • Strong investment grade credit rating REGULAR AND • 2025 FY div
Slide 19: Tufan Erginbilgic, Chief Executive
03 TUFAN ERGINBILGIC Chief Executive © 2026 Rolls-Royce. Not Subject to Export Control
Slide 20: Long-term growth momentum - existing
LONG-TERM GROWTH MOMENTUM - EXISTING Strong and improving growth prospects beyond the mid-term driven by our strategic initiatives Significant revenue growth opportunities from existing businesses Key drivers Civil Aerospace Mid-term 2050 Widebody fleet growth with higher OE and LTSA margins, alongs
Slide 21: Long-term growth momentum - existing & new
LONG-TERM GROWTH MOMENTUM - EXISTING & NEW Strong and improving growth prospects beyond the mid-term driven by our strategic initiatives Further revenue growth opportunities from new businesses Key drivers Nuclear Unique capabilities in fast-growing and profitable SMR and AMR’ markets Narrowbody A t
Slide 22: Achieving the Rolls-Royce proposition
ACHIEVING THE ROLLS-ROYCE PROPOSITION OUR TRANSFORMATION ▪ Strong 2025 results driven by our Transformation programme 1. HIGH PERFORMING, COMPETITIVE, AND RESILIENT BUSINESS ▪ 2026 guidance demonstrates continued strong progress ▪ Upgraded mid-term targets for 2028 ▪ £7bn-£9bn share buyback programm
Slide 23: Q&A
Q&A © 2026 Rolls-Royce. Not Subject to Export Control
Slide 24: The information in this document is proprietary and confidential to Rolls-Royce and is available
The information in this document is proprietary and confidential to Rolls-Royce and is available to authorized recipients only – copying and onward distribution is prohibited other than for the purpose for which it was made available. © 2026 Rolls-Royce. Not Subject to Export Control