Rolls-Royce delivers another 'strong' H1 performance, raises FY guidance
By Iain Gilbert
Date: Thursday 30 Jul 2026
(Sharecast News) - Aerospace firm Rolls‑Royce delivered another strong first half performance on Thursday, leading it to raise full‑year guidance, with the group saying its transformation programme continued to drive a sharp improvement in both its operational and financial performance.
Rolls-Royce said underlying operating profits had jumped 46% to £2.5bn in the six months ended 30 June, lifting margins to 22.5% as all three divisions - civil aerospace, defence and power systems - posted increased profitability. Free cash flow rose to £2.0bn, supported by stronger earnings and increased investment.
The FTSE 100-listed group said higher LTSA margins, contract catch‑ups in civil aerospace, stronger power‑generation profitability in power Ssystems, and improved aftermarket performance in defence were the key drivers of the uplift.
Rolls-Royce also said shareholder returns increased, with an interim dividend of 6.0p declared for September.
As a result of its H1 performance, Rolls‑Royce upgraded its FY26 guidance, with the firm now expecting £4.7bn to £4.9bn of underlying operating profits and £3.8bn to £4bn of free cash flow, up from previous ranges of £4.0bn to £4.2bn and £3.6bn to £3.8bn, respectively.
Chief executive Tufan Erginbilgic said: "A strong start to the year enables us to raise our guidance for 2026 despite the conflict in the Middle East.
"This builds further confidence in our mid-term targets. The actions that we have taken and investments we have made will drive significant profitable growth to the mid-term and beyond."
As of 0810 BST, Rolls-Royce shares were up 3.90% at 1,433.80p.
Reporting by Iain Gilbert at Sharecast.com
See lates RNS at Investegate
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