Rolls-Royce Profits Jump 50% on Jet Engine and AI Demand

Rolls-Royce has reported a sharp rise in profits, driven by surging demand for jet engines and power systems for AI datacentres, sending its shares to record highs.

The British aerospace and defense manufacturer posted underlying operating profits of £1.7 billion in the first half of 2025, up 50 percent from £1.1 billion a year earlier. The strong performance allowed Rolls-Royce to raise its full-year profit forecast from £2.7-£2.9 billion to £3.1-£3.2 billion. Shares soared 10.5 percent to £11.085, lifting the company’s valuation above £90 billion for the first time and pushing the FTSE 100 index to a record intraday high.

The company said growth was led by robust demand in its large engines business, which powers wide-body aircraft such as the Airbus A350 and Boeing 787. Rising global defense spending, particularly since the war in Ukraine, also supported earnings as Rolls-Royce remains a key supplier of fighter jet engines.

Its power systems division saw orders for datacentres rise 85 percent year-on-year, fueled by the rapid expansion of artificial intelligence. The company now expects 20 percent annual growth in datacentre demand through 2030, up from earlier forecasts of 15-17 percent.

Chief executive Tufan Erginbilgiç, who launched a sweeping turnaround strategy in 2023, credited cost-cutting and renegotiated maintenance contracts for the strong results. He also highlighted progress in the company’s small modular reactor (SMR) program, with the UK government selecting Rolls-Royce to deliver the first factory-built nuclear plants. The SMR business is expected to be profitable by 2030 and generate long-term growth beyond aviation.

Sources: AirGuide Business airguide.info, bing.com, theguardian.com

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Rolls-Royce Profits Jump 50% on Jet Engine and AI Demand

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