Rolls-Royce credits engine reliability for soaring H1 performance

The Derby-based aerospace and defence group reported a 50% surge in underlying operating profit to £1.7 billion for the six months to 30 June.

Rolls Royce testing engines

Rolls-Royce has credited a stellar first-half performance in 2025 with work to improve time on wing for its engines as the company achieved impressive results despite a challenging operating environment.

The Derby-based aerospace and defence group reported a 50% surge in underlying operating profit to £1.7 billion for the six months to 30 June.

The uptick in performance, announced on Thursday, prompted the UK engineering giant to raise its full-year guidance.

The results mark a significant milestone in CEO Tufan Erginbilgiç’s turnaround plan, with the company highlighting “continued progress” despite lingering supply chain pressures and ongoing tariff challenges.

Rolls Royce testing an engine in the UK
Photo: Rolls-Royce

The former BP executive had once described Rolls-Royce as a “burning platform” but has embarked on an impressive reorganisation since joining the company in 2022.

In a further signal of confidence, Rolls-Royce said it was now expecting underlying operating profit of between £3.1 billion and £3.2 billion for the full year.

Rolls managed to deliver 122 large civil engine in the first six months, up 2%, with Trent XWBs for the A350 leading the way.

Industry analysts said the results were a sign that the company’s strategic initiatives – particularly supply chain improvements and performance management – are bearing fruit as global aviation demand continues to recover.

Rolls-Royce hails transformation

Erginbilgic said: “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.

“We are continuing to expand the earnings and cash potential of Rolls-Royce.”

Rolls said its time on wing programme, which aims to deliver more than an 80% improvement on average across Trent engines by 2027, was “progressing well”.

The company has either delivered or secured more than half of the targeted improvement.

Rolls-Royce-Testbed-80
Photo: Rolls-Royce

On the Trent XWB-84, Rolls has analysed millions of hours of operating data that will allow the company to raise the cycle limit of key engine parts.

In addition to a compressor blade modification, this will enable an increase in the time on wing of the engine.

The improved high-pressure turbine (HPT) blade for the Trent 1000 TEN was certified in June, which will more than double the time on wing of the engine.

And the Airbus A350-900 powered by the new Trent XWB-84EP variant, which will improve fuel consumption by more than 1% relative to the baseline engine and deliver a further time on wing benefit, entered into service in May.

Photo: Rolls-Royce

Improving time on wing

Erginbilgic said: “In civil aerospace, we achieved significant time on wing milestones and delivered improved aftermarket profitability.

“A strong start to the year gives us confidence to raise our guidance for 2025. We now expect to deliver underlying operating profit of £3.1bn-£3.2bn and free cash flow of £3.0bn-£3.1bn.

“This builds further conviction in our mid-term targets, which include underlying operating profit of £3.6bn-£3.9bn and free cash flow of £4.2bn-£4.5bn.

“We see these targets as a milestone, not a destination, with substantial growth prospects beyond the mid-term.”

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