Rolls-Royce Holdings PLC (LSE:RR.) is set to report its half-year results on 31 July and expectations are running high.
Deutsche Bank thinks the aero engines giant is primed to deliver another solid update, in line with what it’s already flagged in earlier trading statements.
The team has nudged up its target price for Rolls shares to 1,000p (from 935p), reflecting not just higher optimism in the sector but also stronger cash generation.
So, what’s likely to move the dial?
For one, flying hours on the company’s big civil jet engines, how much time their engines spend in the air, are expected to have raced past pre-pandemic levels, hitting around 110% of what we saw back in 2019.
That’s a strong sign that air travel is booming again, which is great for Rolls, as it earns money from engine servicing each time a plane powered by its turbines takes off and lands.
There are also some anticipated strategic updates, particularly on its civil aerospace business and the much-discussed Small Modular Reactors, or SMRs. (Think mini nuclear reactors: a potential new frontier for clean energy, and a field where Rolls wants to be a big player.)
Defence and power systems, two other important arms of the group, are also expected to show steady results.
But Deutsche says not to expect fireworks across the board; last year’s strong first half in Defence is unlikely to be repeated in quite the same way this time around.
In short, Rolls-Royce looks set for another robust set of numbers, with a little more excitement expected from new projects and the ongoing recovery in aviation. If you’re holding shares, it could be an interesting summer.