Rolls-Royce Profit Jumps 1bn as Defence Orders Surge - London Business News | Londonlovesbusiness.com
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Rolls-Royce Profit Jumps 1bn as Defence Orders Surge - London Business News | Londonlovesbusiness.com
"The engineering group said its core divisions were well positioned to benefit from key global trends such as increased defence spending and aerospace modernisation, as it posted a 40% rise in underlying operating profit to £3.5 billion for 2025, up from £2.5 billion the previous year."
"Demand for defence products remained robust throughout 2025, with the company securing contracts worth more than £1.5 billion from the Ministry of Defence and the United States Department of Defence. These include agreements for EJ200 and AE 2100 engines used in military aircraft."
"Executives noted that rising global demand for reliable power generation, driven by energy-intensive data centres supporting cloud computing and AI, is a key factor fuelling the power systems division's expansion and strategic importance."
Rolls-Royce Holdings reported significant financial growth in 2025, with underlying operating profit rising 40% to £3.5 billion and revenues exceeding £20 billion, a 10% increase year-over-year. The company's performance was driven by strength across civil aerospace, defence, and power systems divisions. Defence contracts worth over £1.5 billion were secured from UK and US ministries, including agreements for military aircraft engines and Eurofighter Typhoon programme orders from European nations and Turkey. The power systems division experienced particularly robust growth, with revenues rising over one-third, fuelled by global demand for reliable power generation supporting data centres, cloud computing, and artificial intelligence infrastructure. These commitments position the company for sustained production through the 2030s.
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