Rolls-Royce reports strong trading driven by engine demand, major defence deals and nuclear progress

Rolls-Royce has reported a powerful surge in performance across every division as the engineering giant delivered a confident trading update to the end of October 2025. Chief executive Tufan Erginbilgic said the company remains firmly on track to hit its full-year guidance despite supply chain pressures and continues to gain momentum through its transformation programme. He said the Group is strengthening its balance sheet while delivering profitable growth and expanding its global presence.

In Civil Aerospace, demand for large engines remains strong with major orders arriving from IndiGo, Malaysia Airlines and Avolon during the second half of the year. Interest in the Trent XWB-97 powered Airbus A350 F continues to grow in Greater China and across the Asia Pacific region, with Air China Cargo and Korean Air among the latest customers. Large engine flying hours rose by eight per cent in the first ten months of the year, reaching one hundred and nine per cent of pre-pandemic levels.

Rolls-Royce received recognition from Airbus with a supplier award for ramp-up and operational excellence, marking the first time an engine maker has secured this accolade. The company is also advancing its time on the wing improvement programme. The upgraded Trent one thousand high-pressure turbine blade certified in June is now being fitted to engines across the maintenance network and more than doubles the time on wing. Further durability improvements for both the Trent one thousand and Trent seven thousand engines remain on track for certification by the end of next year. In business aviation, the first Pearl seven hundred powered Gulfstream G eight hundred entered service in August, and the engine is performing smoothly.

Defence activity remains energetic with robust global demand for power and propulsion systems. In September, the Global Combat Air Programme consortium expanded its partnership to accelerate the development of advanced propulsion technology. Rolls-Royce successfully tested a combustor created with enhanced additive manufacturing,which promises higher performance. The United Kingdom and Türkiye signed an agreement in October for the export of twenty Eurofighter Typhoon aircraft powered by EJ two hundred engines with potential for further orders.

Progress continues on Project Pele, the United States Government programme focused on transportable microreactors. Rolls-Royce sees defence as a likely early customer for advanced microreactor technology. The company also completed the sale of its naval propulsors business to Fairbanks Morse Defence in July.

Power Systems also delivered strong order intake and revenue growth particularly in power generation for data centres and governmental clients. Testing of the next-generation engine continues to advance rapidly with multiple units undergoing evaluation. This engine which enters service in twenty twenty eight will target the data centre backup market with improved fuel use lower emissions and higher power density. In October Rolls Royce launched a fast start gas generator to serve data centres awaiting grid connections. The system can later be converted to backup use once sites are connected. The company also successfully tested the first high speed marine engine capable of running on one hundred percent methanol marking a significant milestone in its carbon neutral propulsion strategy.

Rolls-Royce SMR continued to make global progress. In Sweden, it reached the final stage of the national competition to select a nuclear technology partner, with Vattenfall confirming interest in small nuclear options only. In the United Kingdom Rolls Rolls-Royce remains the preferred technology provider for Great British Energy Nuclear, with commercial terms on track for completion later this year. The company also entered the United States regulatory process, which it views as a critical step toward future investment and job creation.

The Group continues to push efficiency and simplification. A new capability and innovation centre has opened in Bengaluru, India, to support global corporate functions. Stronger cash generation has enabled further balance sheet improvement, and credit rating agencies now rate Rolls-Royce at investment grade, including a BBB+ rating from S and P Global in August. The company repaid a one billion dollar bond in October and has completed nine hundred million pounds of its one billion pound share buyback.

Rolls-Royce will publish its full-year twenty twenty five results on twenty six February twenty twenty six.