📈 Rolls-Royce takes off again: Transformation brings results!
The British aircraft engine manufacturer Rolls-Royce $RR.L continues its renaissance. For the first half of 2025, it achieved an underlying operating profit of £1.7 billion, an increase of 51 %. Operating margin has risen from 14 % to 19,1 %, the company not only beat expectations but also raised its full-year profit guidance by a further £300 million.

🚀 Shares responded with a jump of 11 % to reach an all-time high. Since CEO Tufano Erginbilgic took over in 2023, the company's market value has increased by a staggering 400 %. A transformation that may have initially seemed ambitious is beginning to yield real and tangible results.

🔧 Trent engines as the main driver of performance
At the heart of the success is the improved durability of the Trentwide-body engines that power the Airbus A350 and Boeing 787 aircraft, among others . Rolls-Royce has been able to extend the so-called 'Trent' range. "time on wing" the length of time an engine remains in service without the need for overhaul. This directly increases profits, as the company earns a profit on every flight hour.

📈 Newly certified turbine blade enhancements will extend the time on wing to up to six years, making the model Trent 1000 becoming significantly more competitive with the GE GEnx-1B.

⚛️ Rolls-Royce as an innovator in the energy sector
But it's not just about aviation. Rolls-Royce is also growing in the power systems sector, thanks in particular to demand from the data centre and government sectors. Small modular reactor programme (SMR) has been selected by the British government to build three new units. At the same time, Rolls-Royce technology is also of interest here at home (CEZ).

Erginbilgic stressed that the demand for SMR is strong, even without the necessary dependence on the US market. This gives the company wider geopolitical and commercial flexibility.

The company has also raised its outlook for free cash flowto £3.1 billionwhich provides ample scope for further investment, development and returns to shareholders.

🛡️ Diversification as a long-term strategy
In addition to civil aerospace and energy, Rolls-Roycehas a strong defence division to complement its overall growth. Improving margins, prospective higher profitability and significant technological improvements make Rolls-Royce one of the most interesting industrial investments in the European market.

The power of the CEO
The transformation under Erginbilgic's leadership is not just about cost optimisation, but about a real change in the roots of the company, with a focus on performance, innovation and global expansion. If Rolls-Royce can maintain the momentum and manage supply chain and service issues, it can become the European leader in next-generation technology.

What do you think of the company? Does it have a chance to become a technology leader in Europe?