Rolls-Royce (RR) Jefferies Global Industrials Conference 2026 summary

Transformation and strategic vision

• Focus shifted from restructuring to holistic transformation, aiming for new capabilities, culture, and financial strength to unlock sustainable growth opportunities.

• Emphasis on creating a high-performing, competitive, resilient, and growing business, with safety and operational excellence as core pillars.

• Achieved best-in-class product durability and reliability, eliminating all AOGs and enhancing customer service.

• Growth potential expanded through alignment with global demand and new opportunities in SMR and narrow body segments.

• Legacy goal is to establish sustainable growth and resilience, avoiding cycles of crisis and restructuring.

Civil Aerospace and industry dynamics

• Maintains in-house turbine and blade production, differentiating from competitors and reducing reliance on external suppliers.

• GE's acquisition of CPP expected to impact casting and forging industry dynamics, but minimal direct effect on Civil Aerospace.

• M&A criteria are strict, focusing on value creation, synergies, and standalone investment quality.

• Growth strategy prioritizes value creation over volume, with recent results showing nearly 50% year-over-year profit improvement.

• Close collaboration with airframers on next-generation engine integration, focusing on early involvement and superior product development.

Technology and product development

• Boeing has made clear decisions on next-generation engine technology; close cooperation continues with Airbus.

• UltraFan technology program has contributed to significant improvements in time on wing and product reliability.