Rolls-Royce has reiterated its 2025 full-year guidance, despite ongoing supply chain issues, and reported strong performance across the group that met expectations.
In its trading update to 31 October 2025, the company said it continues to maintain full-year underlying operating profit between £3.1bn ($4bn) and £3.2bn, as well as free cash flow between £3.0bn and £3.1bn.
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Rolls-Royce chief executive Tufan Erginbilgic said: “Strong performance across the group, driven by our actions and strategic initiatives, was in line with our expectations.
“We are continuing to progress our transformation programme, delivering profitable growth, and further strengthening our balance sheet.”
The company is focused on strengthening its balance sheet through increased cash generation.
Rolls-Royce said it repaid a $1bn bond that matured in October 2025 as scheduled.
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By GlobalDataThe company has also advanced with its share buyback programme, completing £0.9bn out of a planned £1bn by the end of October.
Rolls-Royce plans to release its results for the full year of 2025 on 26 February 2026.
The trading update comes after the company announced in July that it had increased its full year 2025 guidance due to strong performance in the first half of the year.
In the first half, the company’s underlying operating profit increased by 50% to £1.7bn with an operating margin of 19.1%.
The company said demand continues for its products and services in the Defence division.
The Global Combat Air Programme (GCAP) consortium, which includes Rolls-Royce, announced a widened partnership to accelerate progress on power and propulsion systems in September 2025.
Rolls-Royce also advanced its technical capabilities within GCAP, successfully testing a combustor produced with additive layer manufacturing.
The company will provide its EJ200 engines for the UK export deal of 20 Eurofighter Typhoon aircraft to Türkiye.
On the nuclear front, Rolls-Royce reported ongoing progress with Project Pele, a mobile microreactor initiative led by the US Government.
The company is working with US partners to explore military applications for advanced microreactor technology, marking a significant step in cross-border nuclear cooperation.
Rolls-Royce finalised the sale of its naval propulsors business to Fairbanks Morse Defense in July 2025.
