Rolls-Royce has reported soaring profits as strong demand for its engines helped the engineering giant offset supply chain challenges and tariff pressures.
Shares in the company surged to a new record level on Thursday morning as a result.
The FTSE 100 firm said the results showed continued success in the long-term transformation plan first laid out by the company in 2023.
On Thursday, Rolls-Royce said underlying operating profits jumped by 50% to £1.7 billion for the first half of 2025.
Rolls-Royce raised its financial forecasts for 2025 as a result. The company predicts underlying operating profits between £3.1 billion and £3.2 billion this year.
It represents a significant upgrade after previously pointing towards profits between £2.7 billion and £2.9 billion.
The company, which makes engines used in large Boeing and Airbus planes, said it was supported by a “strong” performance in its large engines business, as well as margin improvements on contracts.
The company reported underlying revenues in its civil aerospace arm grew by 17% and growth of 20% in its power systems division.
The London-listed business cheered the “strong” performance in the face of “an uncertain external environment, including continued supply chain challenges and tariffs”.
The company said it expects to fully offset the impact of announced US tariffs through mitigating actions. Rolls-Royce is also monitoring the potential indirect impact of weaker economic growth and trade tensions.
The firm highlighted "some improvement" in its supply chain, resulting in better availability for finished parts. However, it recorded inflationary pressure in product costs.
Tufan Erginbilgic, chief executive, said: "Our actions led to strong first half year results, despite the challenges of the supply chain and tariffs".
"We are continuing to expand the earnings and cash potential of Rolls-Royce. A strong start to the year gives us confidence to raise our guidance for 2025."
Rolls-Royce shares were nine per cent higher at 1,077p on Thursday morning.
(PA) Note: This article has been edited with the help of Artificial Intelligence.
