Rolls-Royce (RR) H1 2026 earnings summary

Executive summary

• Delivered significant operational and strategic progress in H1 2026, driven by transformation initiatives and business improvements, with all divisions reporting higher profitability.

• Raised 2026 guidance for operating profit and free cash flow, reflecting increased confidence in mid-term targets.

• Announced interim dividend of 6.0p per share and continued share buyback program, with £1.4bn completed as of July 2026 as part of a multi-year £7bn–£9bn programme.

• Resilient and diversified portfolio with substantial growth potential and robust liquidity.

Financial highlights

• Group revenue grew 26% year-over-year to £11.3bn, with operating profit up 46% to £2.5bn and operating margin at 22.5%.

• Free cash flow rose 24% to £2.0bn, and net cash position increased to £2.1bn at half-year.

• Basic EPS up 41% to 22.17p; return on capital improved by 5.1 percentage points to 22%.

• Interim dividend up 33% to 6.0p per share.

Outlook and guidance

• 2026 underlying operating profit guidance raised to £4.9–£5.2bn; free cash flow guidance raised to £5.0–£5.3bn.

• Civil Aerospace expected to deliver 550–600 OE engines and 1,480–1,550 shop visits.

• Continued investment in capacity, technology, and operational resilience, with higher net investments expected in H2.