LONDON (dpa-AFX) - Rolls-Royce Holdings Plc (RYCEF.PK, RR.L, RYCEY.PK), a British aerospace and defense major, Thursday maintained its outlook for fiscal 2025 underlying operating profit, despite the global tariff uncertainty and continued supply chain challenges. The company said it has had a strong start to the year, with all divisions performing well.
For the year, the engine maker continues to expect underlying operating profit of 2.7 billion pounds to 2.9 billion pounds, and free cash flow of 2.7 billion pounds to 2.9 billion pounds.
The company noted that the year-over-year improvements in profit and cash flow are largely driven by its actions and strategic initiatives. Demand for the products and services also remains strong across the Group.
In its trading update to March 31, ahead of today's Annual General Meeting, Chief Executive Tufan Erginbilgic said, 'Our transformation of Rolls-Royce is progressing strongly and we continue to expand the earnings and cash potential of the business. ..As a result, we have had a strong start to the year. The recently announced global tariff increases have created a degree of uncertainty for the industry. We expect to offset the impact of announced tariffs on our business through the mitigating actions we are taking.'
Erginbilgic added that the company is closely monitoring the potential indirect impact on economic growth and inflation, and will continue to take the necessary actions.
Rolls Royce said good progress on its transformation and the actions being taken give the confidence in the full-year guidance.
In Civil Aerospace, the company recorded strong aftermarket revenue growth driven by higher shop visit volumes.
In Defence, demand remains robust across the portfolio of products with strong order intake.
In Power Systems, strong revenue growth was supported by increased order intake. Revenue growth was led by power generation, driven by continued demand for back-up power generators for data centres, and governmental, with growth in OE and services in both segments, the company noted.
Rolls Royce plans to release first-half results on July 31.
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