By Dominic Chopping
Rolls-Royce raised its guidance and declared an interim dividend as it continues to progress through a multiyear transformation program, despite supply chain and tariff challenges.
The U.K. engineering and defense company said it had a strong first-half performance, with higher profitability in its civil aerospace unit that was driven by large engine aftermarket business, which includes maintenance, repairs, and upgrades.
It also reported continued profitable growth in power generation, particularly in data centers, while across all divisions its cost-efficiency actions have helped to mitigate the effect of inflation.
The engine maker said it expects to fully offset the impact of the announced tariffs through mitigating actions.
The company now expects to deliver underlying operating profit this year of 3.1 billion to 3.2 billion pounds ($4.1 billion-$4.24 billion) and free cash flow of 3 billion to 3.1 billion pounds. That is up from previous forecasts of between 2.7 billion and 2.9 billion pounds for both underlying operating profit and free cash flow.
It declared an interim dividend of 4.5 pence a share to be paid in September, and said it completed 400 million pounds of its planned 1 billion pound share buyback for 2025 during the first half.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
07-31-25 0253ET
