Rolls-royce Holdings Plc · LSE:RR.
Rolls-royce — H1 2025 Earnings Presentation
19 slides from Rolls-royce's earnings presentation, Jul 31, 2025
Slide 1: Half Year Results 2025
HALF 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 © 2025 Rolls-Royce. Not Subject to Export Control
Slide 4: Strong First Half Delivery; Guidance Raised
STRONG FIRST HALF DELIVERY; GUIDANCE RAISED Transforming Rolls-Royce into a high-performing, competitive, resilient, and growing business ▪ Creating a distinctive business ▪ Strong first half results driven by transformation ▪ Continued operational and strategic progress ▪ FY25 guidance raised ▪ Bui
Slide 5: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE KEY GROUP FINANCIAL METRICS DIVISIONAL OPERATING MARGIN Operating profit Operating margin CIVIL AEROSPACE £1.7bn 19.1% 24.9% +50% yoy +4.9pts yoy +7.1pts DEFENCE 15.4% Free cash flow Return on capital -0.2pts £1.6bn 16.9% +37% yoy +3.1pts yoy POWER SYSTEMS 15.3% +5.6pts
Slide 6: Continued Strategic Progress
CONTINUED STRATEGIC PROGRESS Renegotiated cumulative contract cash Contract and LTSA margin improvement Power generation operating profit and improvement across all in-production engines operating margin ~ 1pt improvement +17pts 100% +20pts ~ 30% ~ 1pt improvement 2022 2028 2035 2022 2025 2028 2032
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 • Significant progress with • Further improvements of • Rolls-Royce SMR selected Group in Rolls-Royce
Slide 8: Helen McCabe, Chief Financial Officer
02 HELEN McCABE Chief Financial Officer © 2025 Rolls-Royce. Not Subject to Export Control
Slide 9: 2025 Half Year Underlying Results
2025 HALF YEAR UNDERLYING RESULTS Underlying results £m H1 2025 H1 2024 Organic Change1 Organic Change %1 Strong results with every Revenue 9,057 8,182 +1,063 +13% division delivering Gross profit 2,572 1,977 +644 +33% Gross margin % 28.4% 24 .2% +4.3pts Free cash flow reflects strong 1,733 1,149 Op
Slide 10: Civil Aerospace
CIVIL AEROSPACE Underlying results H1 2025 H1 2024 Organic Change Organic Change % £m KEY POINTS Revenue 4,786 4,119 +689 +17% • 17% revenue growth, 63% profit growth Gross profit 1,477 992 +494 +50% • Higher large engine aftermarket profit across Gross margin % 30.9% 24.1% +6.9pts LTSA and time and
Slide 11: Defence
DEFENCE Underlying results H1 2025 H1 2024 Organic Change Organic Change % £m KEY POINTS Revenue 2,223 2,219 +32 +1% • Strong order in-take with 1.8x book-to-bill Gross profit 462 476 -9 -2% • Improved performance in transport OE and Gross margin % 20.8% 21.5% -0.7pts aftermarket Operating profit 34
Slide 12: Power Systems
POWER SYSTEMS Underlying results H1 2025 H1 2024 Organic Change Organic Change % £m KEY POINTS Revenue 2,042 1,837 +341 +20% • 20% revenue growth, 89% profit growth Gross profit 635 507 +161 34% • Strong power generation profit growth driven Gross margin % 31.1% 27.6% +3.2pts by data centres Operati
Slide 13: Summary Funds Flow
SUMMARY FUNDS FLOW £m H1 2025 H1 2024 Change Operating profit 1,733 1,149 584 KEY DRIVERS OF HIGHER YEAR ON YEAR FCF Net investments1 37 41 (4) • Higher operating profit Movement in Civil LTSA balance, net of RRSAs 472 544 (72) • Broadly similar net LTSA balance Working capital, excluding Civil Net
Slide 14: Capital Framework
CAPITAL FRAMEWORK Building resilience, investing strategically, and rewarding shareholders 1 STRONG BALANCE SHEET • Net cash position of £1.1bn • 2025 $1bn bond to be repaid from cash 2 • Interim dividend of 4.5p REGULAR AND GROWING DIVIDENDS • Target annual payout of 30-40% of underlying profit aft
Slide 15: Tufan Erginbilgic, Chief Executive
03 TUFAN ERGINBILGIC Chief Executive © 2025 Rolls-Royce. Not Subject to Export Control
Slide 16: Full Year 2025 Guidance Raised
FULL YEAR 2025 GUIDANCE RAISED Delivering strong progress towards our mid-term targets Operating profit Free cash flow . . £4.2-4.5bn £3.6-3.9bn £3.1 -3.2bn £3.0-3.1bn 2022 2023 2024 Prior 2025 2025 Mid-term 2022 2023 2024 Prior 2025 2025 Mid-term Mid-term targets Group operating margin 15-17% Retur
Slide 17: Achieving the Rolls-Royce Proposition
ACHIEVING THE ROLLS-ROYCE PROPOSITION OUR TRANSFORMATION ▪ Expanding Rolls-Royce's earnings and cash potential 1. HIGH PERFORMING, COMPETITIVE, AND RESILIENT BUSINESS ▪ Strategic initiatives driving higher margins and returns ▪ Strong first half results with all divisions delivering ▪ FY25 guidance
Slide 18: Q&A
Q&A © 2025 Rolls-Royce. Not Subject to Export Control
Slide 19: 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.