Rolls-Royce Holdings (LON:RR) raised its full-year forecasts after a sharp improvement in first-half trading, sending shares up nearly 9% on Thursday morning.
Underlying operating profit jumped 51% to £1.73 billion, while free cash flow rose 36% to £1.58 billion. Revenue climbed 7.1% to £9.49 billion.
The figures were supported by improved performance across all divisions, despite supply chain pressures and tariffs. Reported pretax profit surged to £4.84 billion, helped by a £679 million gain from offloading its small modular reactor business and a £2.09 billion swing in net finance income.
Rolls now expects £3.1–£3.2 billion in underlying operating profit and £3.0–£3.1 billion in free cash flow this year, both upgrades on previous guidance. A 4.5p interim dividend was declared, and £400 million of a planned £1 billion buyback has been completed.
CEO Tufan Erginbilgic said the transformation was on track, but there was more to come.