Rolls-Royce (RR) Q3 2025 TU earnings summary

Executive summary

• Strong performance across all business segments, driven by strategic initiatives and transformation efforts, in line with expectations to date.

• Full year 2025 guidance reaffirmed for underlying operating profit (£3.1bn–£3.2bn) and free cash flow (£3.0bn–£3.1bn) despite ongoing supply chain challenges.

• Transformation programme continues to deliver profitable growth and strengthen the balance sheet.

Financial highlights

• Large engine flying hours up 8% year-over-year to 109% of 2019 levels for the 10 months to 31 October 2025.

• Share buyback programme progressing, with £0.9bn completed out of £1bn by end of October.

• $1bn bond repaid in October, further improving financial position.

Outlook and guidance

• Full year 2025 underlying operating profit expected between £3.1bn and £3.2bn.

• Free cash flow guidance maintained at £3.0bn–£3.1bn.

• Commercial terms for UK SMR project expected to be finalised by year-end.