Rolls-Royce has upgraded its profit forecast following a "strong start to the year" that saw its revenue increase by nearly £1bn. The FTSE 100 behemoth reported an underlying pre-tax profit of £1.68bn for the first six months of its financial year, up from the £1.03bn it recorded for the same period in 2024.
New figures submitted to the London Stock Exchange by the firm, which has º£½ÇÊÓƵ bases in Derby and Filton, near Bristol, also reveal a 50% growth in its underlying operating profit from £1.14bn to £1.73bn in the first half of the year.
On a statutory basis, Rolls-Royce's revenue rose from £8.86bn to £9.49bn, its operating profit increased from £1.64bn to £2.07bn and its pre-tax profit jumped from £1.41bn to £4.84bn.
Underlying revenue climbed from £8.18bn to £9.05bn during the period. As a result of its improved finances, the company announced it is raising its guidance for 2025 and now anticipates delivering an underlying operating profit of between £3.1bn-£3.2bn and free cash flow of between £3bn-£3.1bn.
Rolls-Royce CEO Tufan Erginbilgic stated: "Our multi-year transformation continues to deliver. Our actions led to strong first half year results, despite the challenges of the supply chain and tariffs," as reported by .
"We are continuing to expand the earnings and cash potential of Rolls-Royce. We delivered continued strong operational and strategic progress in the first half of 2025."
These results follow Rolls-Royce's stock price surpassing the £10 threshold for the first time in the company's history during July. The recent achievement has seen Rolls-Royce's share price double from its position in September 2024.
The company has experienced an almost unparalleled streak of success on the London Stock Exchange since the nadir of the Covid-19 pandemic. Even a significant drop following US President Donald Trump's tariff announcements in April did not halt the consistent rise of the company's share price.
"Strong financial performance was achieved despite an uncertain external environment, including continued supply chain challenges and tariffs," the company added in a statement.
"We expect to fully offset the impact of the announced tariffs through the mitigating actions we are taking. We are closely monitoring the potential indirect impact on economic growth, foreign exchange rates, and inflation and we will continue to take the necessary actions."
In June, a subsidiary of Rolls-Royce was chosen as the º£½ÇÊÓƵ's supplier of small modular reactor (SMR) technology. Rolls-Royce SMR, jointly owned by the FTSE 100 behemoth and Czech energy firm CEZ, emerged victorious in the Great British Nuclear (GBN) competition after a two-year process.
The division will now construct three units in the º£½ÇÊÓƵ, a move that the company said would "generate employment, boost the supply chain and generate economic growth, including through the capture of significant export opportunities". This morning, Rolls-Royce's CEO stated his expectation for the SMR branch to be profitable and generate positive free cash flow by 2030.
