- Earnings Per Share: Rolls-Royce Holdings plc reported earnings per share of $0.20, beating estimates.
- Revenue Growth: Despite a slight miss, the company generated a revenue of approximately $12.04 billion.
- Full-Year Guidance Upgrade: The company upgraded its full-year guidance, with an anticipated operating profit between £3.1 billion and £3.2 billion.
Rolls-Royce Holdings plc, trading under the symbol RYCEY on the OTC exchange, is a prominent British engineering company known for its aerospace and defense products. On July 31, 2025, the company reported earnings per share of $0.20, surpassing the estimated $0.16. Despite generating a revenue of approximately $12.04 billion, it slightly missed the estimated $12.05 billion.
During the Q2 2025 earnings conference call, key figures like CFO Helen McCabe and CEO Tufan Erginbilgic discussed the company’s financial performance. Analysts from major financial institutions, including BofA Securities and UBS Investment Bank, were present. The call highlighted Rolls-Royce’s strategic direction and efforts to navigate economic challenges, as noted by Seeking Alpha.
Rolls-Royce’s shares soared by 9% after upgrading its full-year guidance, driven by a 50% increase in underlying operating profit for the first half of the year. The company reported an operating profit of £1.73 billion, up from £1.15 billion the previous year. Revenue increased by nearly 11%, reaching £9.06 billion, with profit margins expanding to 19.1%.
The company’s free cash flow improved to £1.58 billion, contributing to a net cash position of £1.08 billion by the end of June. Rolls-Royce declared an interim dividend of 4.5p per share and completed £0.4 billion of a planned £1 billion share buyback. The full-year operating profit is now anticipated to be between £3.1 billion and £3.2 billion, up from the previous guidance of £2.7 billion to £2.9 billion.
Despite challenges like supply chain issues and tariffs, CEO Tufan Erginbilgic attributed the strong performance to ongoing transformation efforts. The stock price increased by 88.5p, reaching 1,076.5p. Rolls-Royce’s financial metrics, such as a P/E ratio of 38.79 and a price-to-sales ratio of 5.08, reflect investor confidence in the company’s future prospects.
