The turnaround is being credited to Chief Executive Tufan Erginbilgic, who took the helm in 2023 with a bold commitment to transform the British aero-engineering giant. Under his leadership, the company has not only improved operational performance but also positioned itself for sustainable long-term growth.
Upgraded Outlook Amid Engine Efficiency Gains
Rolls-Royce has increased the upper range of its full-year operating profit forecast by £300 million, now expecting up to £3.2 billion, while free cash flow guidance was raised by £200 million to £3.1 billion. These revised projections reflect robust improvements across its civil aerospace division — particularly in the performance of its Trent widebody engines, which power Airbus aircraft and some Boeing 787s.
A key driver behind the improved profitability is the enhanced “time on wing” — the duration engines remain in operation before requiring major maintenance. Erginbilgic stated that the company is targeting an over 80% improvement in time on wing for Trent engines by 2027, a major cost and revenue efficiency milestone.
Highlighting the significance of this development, Rolls-Royce revealed that a newly certified turbine blade (approved in June) is set to more than double the time on wing for the Trent 1000, which has historically faced reliability issues. The upgraded engine could now remain in service for up to six years between major overhauls, making it “a very, very competitive engine,” Erginbilgic said.
While the company expects a temporary increase in Trent 1000 maintenance visits in the second half of 2025, the long-term outlook remains bullish thanks to ongoing enhancements.
Diversified Growth Across Power and Defence
Beyond civil aviation, Rolls-Royce's Power Systems division — which supplies equipment to data centres and government clients — has also delivered strong results, contributing to the company’s growing revenue base.
In addition, the firm’s Small Modular Reactor (SMR) programme recently secured a key vote of confidence from the UK government, which selected Rolls-Royce to build three SMR units as part of its clean energy strategy. While the programme has garnered international interest, including from U.S. President Donald Trump during his meeting with Prime Minister Keir Starmer, Erginbilgic stressed that current focus remains on execution in Britain and the Czech Republic. “There is good demand on SMRs, even without the U.S.,” he noted.
Strong Financial Results
For the first half of 2025, Rolls-Royce reported an underlying operating profit of £1.7 billion, with the operating margin rising to 19.1%, up from 14.0% in the same period last year — clear evidence of rising efficiency and profitability.
As Rolls-Royce continues to revamp its business across aviation, energy, and defence, investor optimism remains high. The company’s strategic focus on improving engine reliability, capturing new energy opportunities, and controlling costs has already paid off — and, according to Erginbilgic, the best may be yet to come.
“We are expanding the earnings and cash potential of Rolls-Royce despite the challenges of supply chain and tariffs,” he said. “There are substantial growth prospects beyond the mid-term.”