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The Markets
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Aerospace

Rolls-Royce's tone reassures analysts, with hints of potential upgrade

Rolls-Royce Holdings PLC (LSE:RR.) struck a notably confident tone in its latest update, with analysts pointing to familiar wording that has previously preceded upgrades.

Broker Jefferies described the statement as “reassuring”, highlighting the resilience of the group’s long-term service agreement model despite uncertainty around air traffic and the Middle East.

The bank noted that the engine maker referred to “further confidence” in its guidance – language it has used before ahead of raising forecasts at interim results.

That phrasing stood out, given the company reiterated its 2026 outlook rather than upgrading it, suggesting management may be leaving room for future changes if current trends continue.

UBS also focused on tone, saying the update was “broadly positive”, with a “strong start to the year” driven by transformation efforts and internal improvements.

Analysts highlighted that engine flying hours came in at 115% of 2019 levels, in line with guidance but ahead of more cautious expectations, while disruption linked to the Middle East is expected to be mitigated.

Overall, the commentary suggests that while headline guidance is unchanged, the underlying message was more constructive.

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