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Rolls-Royce Holdings PLC on Thursday said strong performance in the third quarter ‘builds further confidence’ in meeting full-year guidance, despite some supply side challenges. The London-based manufacturer of jet engines and power turbines predicts full-year 2025 underlying operating profit between £3.1 billion and £3.2 billion and free cash flow between £3.0 billion and £3.1 billion. In 2024, the company reported underlying operating profit of £2.46 billion and free cash flow of £2.43 billion. ‘We are continuing to progress our transformation programme, delivering profitable growth, and further strengthening our balance sheet,’ said Chief Executive Officer Tufan Erginbilgic. In Civil Aerospace, demand remains strong with significant large engine orders, the firm said. Large engine flying hours rose 8% year-on-year to 109% of 2019 levels, boosted by orders from IndiGo, Malaysia Airlines, and Avolon. Defence trading ‘remains robust’ with growing demand from the Global Combat Air Programme and a Typhoon aircraft deal between the UK and Turkey. In Power Systems, Rolls Royce said continued strong order intake and revenue growth was led by power generation, driven by data centres, and governmental. The development and testing of the next generation engine is continuing to progress well, with multiple engines tested in parallel in the period. This engine will enter service in 2028 and primarily targets the data centre backup power generation market, the firm added. In Small Nuclear Reactors, Rolls Royce said commercial terms remain on track to be finalised later this year in the UK after it was selected in June as the preferred technology provider by Great British Energy-Nuclear. On Thursday, the UK government said the first ‘small modular reactor’ nuclear power station will be built at Wylfa, on Anglesey in North Wales. The UK’s first small modular nuclear reactors, will subject to final contract be designed by Rolls-Royce SMR. Shares in Rolls Royce were 0.8% lower at 1,143.00 pence each in London on Thursday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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