Rolls-Royce Lifts 2026 Cash Flow Outlook by £200 Million as Profit View Jumps £700 Million
Updated
Updated · The Guardian · Jul 30
Rolls-Royce Lifts 2026 Cash Flow Outlook by £200 Million as Profit View Jumps £700 Million
3 articles · Updated · The Guardian · Jul 30
Summary
£3.8 billion-£4 billion in free cash flow and £4.7 billion-£4.9 billion in operating profit are now Rolls-Royce’s full-year targets after its half-year results beat earlier guidance.
£700 million of the profit upgrade and £200 million of the cash-flow increase reflect stronger first-half trading, with management still gaining from engine reliability improvements and renegotiated airline contracts.
Power systems added another growth engine: Rolls said its power-generation order book rose 55% as US AI data centers sought diesel backup and gas turbines amid grid constraints.
Defense demand remains supportive through UK submarine propulsion and broader military spending, while Rolls is also positioning for longer-term upside in small modular reactors and a possible return to narrowbody jet engines.
£120 billion in market value now puts Rolls roughly level with Rio Tinto for fourth in the FTSE 100, though it still trails Shell, AstraZeneca and HSBC.