Rolls-Royce Holdings PLC (LSE:RR.) kept its full-year outlook unchanged as it reported a solid operational performance for the ten months to 31 October 2025.
The group continues to expect underlying operating profit between £3.1 billion and £3.2 billion and free cash flow between £3.0 billion and £3.1 billion for the year, despite ongoing supply chain pressures.
Chief executive Tufan Erginbilgic said the performance was in line with our expectations and "builds further confidence in our full year 2025 guidance".
"We are continuing to progress our transformation programme, delivering profitable growth, and further strengthening our balance sheet."
In Civil Aerospace, flying hours rose 8% year on year, reaching 109% of 2019 levels.
The division recorded significant engine orders from carriers including IndiGo, Malaysia Airlines and Air China Cargo.
There was also progress in improving engine durability, including the rollout of the upgraded Trent 1000 HPT blade and testing for additional upgrades.
Defence activity included an expanded role in the Global Combat Air Programme (GCAP) and propulsion system developments for the Eurofighter Typhoon following the export agreement with Türkiye, where BAE Systems is the lead contractor.
Work on Project Pele, the US military microreactor programme, was also noted as advancing on schedule.
The Power Systems arm saw strong demand from data centres, with a next-generation engine for backup power applications that will be available to customers from next year, and a new gas generator launched to provide prime power to data centres awaiting grid connection.
Rolls-Royce SMR, the compact nuclear plant division, expects to see commercial terms with Great British Energy-Nuclear finalised later this year. It also advanced to the final stage of Sweden’s selection process and has entered the regulatory process in the US.
The company said it has completed £0.9 billion of its £1 billion share buyback and repaid a $1 billion bond in October.
Shares fell 2.7% to 1,121p.
Analyst Chlose Lemarie said confirmation that trading across the group is in line with expectations, and that full-year operating profit and cashflow guidance was fully reiterated, should build confidence for investors despite the supply chain environment remaining challenging.
She noted that while large engine flying hours grew 8% year on year, to 9% ahead of 2019, this is below the "10-15% above 2019" target for the year.
"We could see some disappointment of no buyback program expansion and for flight hours standing below the guide, but the wording of the press release and the potential for updated 2028/30 target at FY results on 26 February would lead us to treat any weakness today as a strong entry point," she said.