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British maker of jet engines for wide-body airliners, plus power systems for defense, marine and future small nuclear reactors.
British maker of jet engines for wide-body airliners, plus power systems for defense, marine and future small nuclear reactors.
Sells engines, often at little profit, then earns over decades from service contracts billed per hour the engine flies, so earnings follow long-haul flying. Under a restructuring since 2023 it has cut costs and repriced old contracts. Defense, including naval reactors for submarines, and backup power for data centers add steadier lines.
Moat: wide (installed base, switching costs, regulatory licence). Long-term aftermarket service contracts on a large installed engine base; certification barriers block new entrants.
Headquarters: London, UK · Founded: 1904 · Employees: 43,162
Size Rolls-Royce (RR..L) is a United Kingdom Industrials company (Aerospace & Defense) with a market value of $140B, the 6th largest of 363 United Kingdom companies the cockpit tracks. Shares closed at £1,261 on 6 Nov 2026.
Performance Over six months the shares gained 5.9%, against +1.0% for the median peer and +3.6% for the United Kingdom market (cap-weighted) — 6th highest of 17 in its peer set.
Growth Revenue grew 18.6% over the last twelve months (peer median +8.8%); the operating margin is 18.4% (peer median 11.7%).
Valuation It trades at 28.5× forward earnings against a peer median of 24.4× (7th most expensive of 18).
Price implies For today's price to make sense, revenue must grow about 25% a year for seven years (Req g). Recent delivered growth is +13%, so the hurdle is +12 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Credit Rolls-Royce has 4 bonds outstanding ($2.45B), rated NR by the agencies and trading like A at a weighted spread of 82 bp.
Next results Next results expected around 25 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | £23.2B | £21.2B | £18.9B | £16.5B | £13.5B |
| Revenue growth | — | +12% | +15% | +22% | — |
| Gross profit | £6.59B | £5.92B | £4.01B | £3.58B | £2.75B |
| EBITDA | £5.16B | £4.55B | £3.17B | £3.42B | £2.41B |
| Net income | £3.04B | £5.84B | £2.52B | £2.41B | -£1.12B |
| Free cash flow | £4.30B | £3.76B | £3.06B | £1.86B | £1.26B |
| Capital expenditure | £1.01B | £985M | £886M | £713M | £596M |
| Total debt | n/a | £4.27B | £5.13B | £5.76B | £5.96B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Rolls-Royce RR..L | $140B | +6% | +19% | 18% | 28.5× | 24.6% |
| GE Aerospace GE | $334B | +9% | +20% | 18% | 36.4× | 27.6% |
| Safran SAF.PA | $138B | +4% | +14% | 13% | 28.5× | 22.2% |
| RTX RTX | $256B | +8% | +12% | 11% | 24.4× | 8.4% |
| MTU Aero Engines MTX.DE | $20.9B | +21% | +12% | 13% | 18.5× | 6.3% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | RR..L | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -7.7% | +4.9% | 2nd lowest of 18 |
| 6-month return | +5.9% | +1.0% | 6th highest of 17 |
| Distance from 52-week high | -20.5% | -19.1% | 8th lowest of 18 |
| Revenue growth (TTM) | +18.6% | +8.8% | 4th highest of 17 |
| Operating margin | 18.4% | 11.7% | 6th highest of 18 |
| Forward P/E | 28.5× | 24.4× | 7th most expensive of 18 |
| Growth the price implies (Req g, 7 yrs) | 24.6% | 8.4% | 3rd most demanding of 16 |
| Growth delivered (Del g) | +13.0% | +8.0% | 3rd highest of 16 |
| Hurdle (Req g minus delivered) | +11.6 pp | -1.0 pp | 5th most demanding of 16 |
| EV / EBITDA | 19.8× | 17.7× | 6th most expensive of 17 |
| Net debt / EBITDA | -0.5× | 1.3× | 2nd least indebted of 18 |
| Bond spread | 82 bp | 70 bp | 5th widest of 16 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Rolls-Royce RR..L | United Kingdom | $140B | +6% | +19% | 18% | 28.5× | 24.6% | +13.0% |
| Safran SAF.PA | France | $138B | +4% | +14% | 13% | 28.5× | 22.2% | +13.4% |
| Boeing BA | United States | $137B | -27% | +18% | 0% | 179,875.5× | n/a | n/a |
| Lockheed Martin LMT | United States | $131B | +12% | +8% | 12% | 17.6× | -6.9% | +2.8% |
| Airbus AIR.PA | France | $174B | +14% | +6% | 8% | 26.8× | 22.6% | +8.0% |
| General Dynamics GD | United States | $95.7B | +3% | +10% | 10% | 19.4× | -2.5% | +6.7% |
| Howmet Aerospace HWM | United States | $81.8B | -24% | +22% | 28% | 32.6× | 24.1% | +9.4% |
| RTX RTX | United States | $256B | +8% | +12% | 11% | 24.4× | 8.4% | +9.4% |
| Northrop Grumman NOC | United States | $74.6B | -4% | +7% | 11% | 17.8× | 0.2% | +2.7% |
| BAE Systems BA..L | United Kingdom | $72.6B | -4% | +7% | 9% | 22.0× | 2.8% | +8.0% |
| TransDigm TDG | United States | $66.2B | -1% | +17% | 47% | 25.5× | 9.7% | +11.6% |
| GE Aerospace GE | United States | $334B | +9% | +20% | 18% | 36.4× | 27.6% | -9.6% |
| Thales HO.PA | France | $51.1B | -1% | +7% | 11% | 20.6× | -2.8% | +7.6% |
| Honeywell Aerospace HONA | United States | $48.5B | n/a | n/a | 20% | 18.8× | n/a | n/a |
| L3Harris LHX | United States | $48.4B | -13% | +7% | 12% | 20.1× | 7.0% | +3.7% |
| Rheinmetall RHM.DE | Germany | $42.5B | -29% | -2% | 18% | 22.0× | 6.5% | +12.9% |
| HEICO HEI | United States | $39.2B | +14% | +21% | 24% | 47.8× | 24.5% | +20.2% |
| Hindustan Aeronautics HAL.NS | India | $35.2B | +4% | +7% | 23% | 33.6× | 42.7% | +7.2% |
Rolls-Royce has 4 bonds outstanding with $2.45B face value. The agencies rate it NR; its bonds trade like A. Weighted yield 3.87%, a spread of 82 bp over government bonds.