Good news in every direction for Rolls Royce
Commenting on Rolls Royce’s latest financial results, Emily Sawicz, Director and Industrials Senior Analyst at RSM UK, said: “The good times just keep coming for Rolls Royce – with all four of its divisions performing strongly.
“Over half of Rolls’ business is in commercial aerospace where its order book is strong. Whilst the war in the Middle East has the potential to dent growth in its after-market revenues based on engine flying hours, the trend remains upwards.
“Rolls’ business selling power systems to data centres is booming with sales up 28% whilst its Small Modular Reactor (SMR) division is well placed to provide additional UK grid capacity. It’s first SMRs are expected to start generating power in the mid-2030s.
“Finally in defence, Rolls’s development programme has been bolstered by orders from several NATO members including the UK and Canada. The uptick in UK spending set out in the Defence Investment Plan will provide the confidence for the business to invest, whilst supporting the UK supply chain.”