Rolls-Royce Holdings Plc has reported a strong first-half performance for 2025, with underlying operating profit up 50 percent to £1.7 billion and free cash flow climbing to £1.6 billion. The results, released on 31 July, reflect the company’s transformation strategy and ongoing improvements across its core divisions, including Civil Aerospace, a key segment linked to long-haul cargo capacity and maintenance services.
The Civil Aerospace division delivered a notable 24.9 percent operating margin, up from 18.0 percent in H1 2024. The uplift was driven by improved aftermarket profitability, higher time-on-wing milestones, and contractual renegotiations across Rolls-Royce’s widebody engine portfolio. Engine flying hours reached 109 percent of 2019 levels, further signalling continued recovery in international traffic and belly cargo availability.
CEO Tufan Erginbilgic said: “We delivered strong operational and strategic progress in the first half. In Civil Aerospace, we achieved significant time-on-wing milestones and improved aftermarket performance. A strong start to the year gives us confidence to raise our guidance.”
The MRO segment also recorded a series of developments relevant to air cargo operations. Rolls-Royce and Turkish Technic are set to launch a joint MRO facility at Istanbul Airport by 2027 to service Trent engines, including the Trent XWB-84 and 7000—both powering long-haul aircraft crucial to international cargo flows. Additionally, newly certified blade improvements are expected to significantly extend the service intervals of the Trent 1000 and Trent 7000 families.
Free cash flow was underpinned by the growth in long-term service agreements (LTSA), with Civil Aerospace contributing £472 million in LTSA balance growth net of risk-sharing arrangements. The company also highlighted improvements in supply chain stability and enhanced contractual margins of £402 million across the portfolio.
Rolls-Royce raised its full-year 2025 guidance, now forecasting £3.1–£3.2 billion in underlying operating profit and £3.0–£3.1 billion in free cash flow.
