Rolls Royce is expected to report higher revenue and significantly stronger pre-tax profit, earnings per share (EPS) compared to full-year 2024 results.
Revenue:
£19.81 billion, 12.1% above its FY 2024 £17.85 billion result.
Pre-tax profit:
£3.3 billion, around 44% higher than a year ago.
EPS:
28.81 pence, around 43% higher than a year ago.
Strong first-half sets high expectations
Investors are approaching the release with keen interest after a strong first half of 2025, when Rolls-Royce delivered an underlying operating profit of £1.7 billion – up roughly 50 percent year-on-year (YoY) – and raised its full-year guidance for both profit and free cash flow.
The company entered the year with upgraded expectations that underlying operating profit would reach £3.1 billion – £3.2 billion, while free cash flow was forecast between £3.0 billion and £3.1 billion. That guidance reflected significant operational progress, including improved civil aerospace aftermarket margins and momentum in Power Systems, even as supply-chain disruptions and tariff headwinds persisted.
Rolls-Royce’s strategic transformation, led by CEO Tufan Erginbilgic, has been centred on improving profitability and cash generation while repositioning the company’s portfolio.
During the first half of 2025, the group also completed part of a £1 billion share buyback programme, sustained dividend payments and strengthened its net cash position, with a reported net cash balance above £1 billion at mid-year.
Civil aerospace remains earnings driver
Ahead of the full-year results, analysts will focus closely on several key areas:
- The Civil Aerospace division remains central to Rolls-Royce’s earnings prospects. This segment has benefited from stronger “time on wing” performance for key engine platforms and negotiated improvements in aftermarket contractual terms, enhancing margin quality, trends that markets will want to see confirmed in full-year numbers.
- Free cash flow generation and balance-sheet metrics will also be under scrutiny. Rolls-Royce’s ability to convert profit into cash – particularly against a backdrop of continued supply-chain pressures and elevated working capital demands – is a critical measure of the sustainability of its turnaround.
- The 2025 interim results pointed to robust operating cash flow and free-cash-flow delivery, forming a baseline against which year-end performance will be assessed.
According to LSEG Data & Analytics, analysts rate Rolls Royce as a ‘buy’ with a mean long-term price target at 1,272.41p, around 5% below the current share price, as of 20 February 2026.