American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Takeaway of Rolls-Royce earnings and impact on its share price

by admin July 31, 2025
July 31, 2025

Rolls-Royce Holdings published strong financial results, mirroring those of its top rivals like GE Aerospace, Safran, and GE Vernova. The results demonstrated the ongoing demand across its three divisions, which are seeing strong tailwinds. Here are the top takeaways in its earnings.

Rolls Royce earnings takeaways

In a statement, Rolls-Royce said that its revenue jumped by 13% in the year’s first half to £9.05 billion. Most notably, the closely watched operating profit metric surged by 50% to £1.75 billion. This led to a 76% surge in its earnings per share. Tufan Erginbilgic, the CEO said:

“We now expect to deliver underlying operating profit of £3.1bn-£3.2bn and free cash flow of £3.0bn-£3.1bn this year. This builds further conviction in our mid-term targets, of underlying operating profit of £3.6bn-£3.9bn and free cash flow of £4.2bn-£4.5bn.”

These results are a significant improvement for a company whose Ergibilgic called a burning machine shortly after his tenure started. He has slashed cost across the business, exited some of its unprofitable businesses, and is working on a return to narrow-body aircraft engines. 

Analysts note that luck has also played part during his tenure. He became CEO as the civil aviation business was emerging from the pandemic, leading to a surge in flying hours. Its civil aviation revenue jumped by 17% in the first half to £4.7 billion, while its profit rocketed up by 63% to £1.19 billion.

Read more: Will the Rolls-Royce share price hit 1,000p after its earnings?

Additionally, his tenure coincided with the start of the war in Ukraine and soaring tensions between the United States and China. These tensions led to a significant increase in defense spending by most western countries. 

Its defense revenue rose slightly to £2.22 billion, whole the operating profit dropped slightly to £342 million. Its free cash flow jumped by 40% to £327 million, while its order backlog jumped by 120% to £18.8 billion.

Finally, the power segment coincided with the artificial intelligence (AI) boom that pushed power spending by data centers much higher. Its power revenue jumped by 20% to £2.04 billion, with its backlog rising by 23% to £5.6 billion. 

The other key takeaway in its results is that its cash position has improved, as it jumped to £1.1 billion. It now expects to pay its bond maturity of £ 1b billion from its cash. 

As a result, the company is targeting a dividend payout of between 30% and 40% of its underlying profits. It is also continuing with its £1 billion share buyback. 

Implication for the Rolls-Royce share price

Rolls-Royce share price chart | Source: TradingView

These results came at a time when the Rolls-Royce stock price has been in a strong bull run. It has jumped from the year-to-date low of 550p to over 1,000p. 

The stock remains above the 50-day and 100-day Exponential Moving Averages, a sign that bulls are in control. Therefore, the stock will likely continue rising as bulls target the key resistance at 1,100p. 

The post Takeaway of Rolls-Royce earnings and impact on its share price appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
St. James Place share price rare pattern points to a 21% surge

Related Posts

5 of the best Stanley Druckenmiller stocks in...

September 11, 2024

Duolingo stock price surged in 2024: is it...

December 31, 2024

USD/USD forecast: here’s why the Japanese yen could...

April 12, 2025

Multiple Significant New Oil Leads Identified in Peruvian...

August 5, 2024

Gold and Silver Prices Gain on Cooling US...

May 16, 2024

Digital Realty stock is severely overvalued; sits at...

September 18, 2024

Getchell Gold Corp. Announces Warrant Extension and Debt...

May 2, 2024

Will Changes to Canada’s Capital Gains Tax Hurt...

April 27, 2024

Crypto price predictions: Pi Network, Monero, and Fartcoin

June 15, 2025

XRP price prediction: Is Ripple preparing for a...

April 21, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Saudi Arabia poised to raise September crude prices to five-month highs

      July 28, 2025
    • From $824 to over $1,300: how soaring rents are consuming American paychecks

      July 27, 2025
    • India-UK sign historic free trade deal: here’s all you need to know

      July 24, 2025
    • Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

      July 20, 2025
    • US visa bans on Brazilian judges spark diplomatic rift, cloud economic ties

      July 20, 2025

    Categories

    • Business (3,530)
    • Investing (2,677)
    • Latest News (2,024)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved