Rolls-Royce has expressed confidence in achieving an underlying profit of nearly £3bn by 2025, despite the ongoing uncertainty surrounding tariffs.
The London-based engineering behemoth maintained its previously guided underlying profit range of between £2.7bn and £2.9bn on Thursday, with a similar projection for free cash flow, as reported by .
In a market statement, Rolls-Royce highlighted robust demand in its aerospace and defence sectors, which have been instrumental in driving its share price rally in recent years.
Large engine flying hours nearly doubled pre-pandemic levels in the quarter ending March, reflecting a global surge in travel demand.
Despite an initial dip following Donald Trump's liberation day announcement, Rolls-Royce shares have soared over 90% in the past year, with a near three per cent rise in early trading 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," said CEO Tufan Erginbilgic.
He added that the company was becoming more resilient and agile, better equipped to adapt to external changes, leading to a strong start to the year.
While acknowledging the "degree of uncertainty" caused by global tariff increases, Erginbilgic stated that the company planned to offset the impact through various 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.
The company is set to announce its half-year results on 31 July.
