Rolls-Royce Soars as Profits and Shares Hit Record Highs
So, here’s what’s making waves in the business world today — Rolls-Royce has just reported an incredible 50% surge in profits, thanks to a booming demand for its jet engines and power systems. That’s a big deal for a company that not too long ago was considered to be in serious trouble.
In the first half of 2025, the company’s underlying operating profits jumped to £1.7 billion. That’s up from £1.1 billion during the same period last year. Naturally, this news sent their share price soaring — up by over 10% in a single morning, hitting a new record of £11.085. To put it in perspective, back in October 2020, during the thick of the pandemic, their shares were trading at under 40p. Today, Rolls-Royce’s market value has crossed the £90 billion mark, making it the fifth most valuable company on the London Stock Exchange. Quite the comeback story, right?
So, what’s driving this turnaround? A few things. First, there’s the growing demand for the large engines Rolls-Royce supplies to major aircraft like the Boeing 787 and Airbus A350. With air travel rebounding and new aircraft orders picking up again, that business is seeing a major boost.
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But it’s not just commercial aviation. Rolls-Royce is also a key supplier of engines for military fighter jets, and with defense spending rising globally—especially since Russia’s invasion of Ukraine—that’s been another strong revenue stream.
On top of that, their power systems division is seeing a surge in demand from datacentres, largely driven by the explosive growth of artificial intelligence. Orders from datacentre customers rose by a whopping 85% compared to last year, and they now expect this demand to keep growing by about 20% every year through to 2030.
The CEO, Tufan Erginbilgiç, who took over in 2023, seems to be getting a lot of credit for this dramatic turnaround. When he stepped in, he famously warned the company was on a “burning platform,” and he’s since slashed costs and renegotiated contracts to make the company more profitable.
Another future play is their work on small modular nuclear reactors—basically compact, factory-made nuclear power plants. The UK government recently tapped Rolls-Royce to deliver the first of these, and the company believes this SMR business could eventually bring in more revenue than their current operations. They’re aiming for it to be profitable by the end of the decade.
So all in all, Rolls-Royce isn’t just recovering—it’s flying high, and investors are clearly paying attention.
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