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Rolls-Royce lifts outlook beyond forecast as all divisions power profit
The engine maker said demand from defence and civil after-market customers lifted first-half operating profit to £2.53 billion.
- Rolls-Royce and BAE Systems upgraded their annual profit outlooks on Thursday, driven by surging global defence demand. Shares in Rolls-Royce surged 6%, leading the FTSE Index.
- Heightened geopolitical risks, including Russia's ongoing war with Ukraine and tensions involving Iran, have prompted nations to increase defence budgets. This elevated threat environment has significantly bolstered order intakes for contractors.
- Rolls reported strong results as its civil aerospace division converted increased flying hours into profits through contract renegotiations. Its power systems division benefits from significant data centre demand for on-site energy.
- BAE Systems CEO Charles Woodburn reported a 9% increase in 2026 sales to £15.8 billion, supported by a £708m contract extension for combat air technologies. BAE maintains a record order backlog of £84 billion.
- Despite these gains, Woodburn warned that defence spending in Britain "falls well short of what is needed to protect the country." He described the current climate as "the most threatening time I've seen.
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Rolls-Royce says engine delays no longer ground aircraft
Rolls-Royce says it has effectively eliminated aircraft-on-ground (AOG) delays in its civil aerospace business after increasing engine maintenance and refurbishment work during the first half of 2026. The engine manufacturer linked the improvement to changes across its maintenance network and greater stability in its supply chain. Rolls-Royce said it increased large-engine maintenance output by 13% during the six months ending June 30, 2026. The…
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Total News Sources38
Leaning Left2Leaning Right4Center16Last UpdatedBias Distribution73% Center
Bias Distribution
- 73% of the sources are Center
73% Center
C 73%
R 18%
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