LONDON, April 25, 2026, 17:06 BST
Rolls-Royce Holdings plc’s small modular reactor business has entered an early works agreement with Czech utility ČEZ Group, kicking off groundwork for what would be the Czech Republic’s inaugural small modular nuclear unit at Temelín. The deal gives the British group another toehold in Europe’s nuclear scene. According to Reuters, the timeline for the first Czech SMR now stretches into the latter half of the 2030s, a slip from the previously floated mid-2030s target.
This month, Rolls-Royce SMR made the jump from being just a contender to actually signing contracts in both Britain and the Czech Republic—finally putting its years-long reactor pitch into motion with site visits, permit filings, and supply-chain prep. Small modular reactors—SMRs—are designed for assembly line production, not sprawling one-off builds.
Rolls-Royce now has a more definitive response for competitors like GE Hitachi, Holtec, and Westinghouse—each previously in the UK’s SMR race before Britain tapped Rolls-Royce SMR as its top choice in June 2025 and signed a contract this month. The selection process in the UK has ended, according to the government.
Rolls-Royce said its deal with ČEZ opens the door for site-specific design work at Temelín, pending the outcome of geological studies planned for 2025. That work will cover groundwork for consents, permits, and licensing. The company added that its wider agreement with ČEZ aims for as much as 3 gigawatts of electricity generation within the Czech Republic.
Chris Cholerton, chief executive at Rolls-Royce SMR, called the deal a “significant programme of work” for Temelín, noting it also puts Rolls-Royce SMR in the unique position of being the only supplier with more than one European SMR contract in hand. Daniel Beneš, the ČEZ chief executive, pointed to the project’s potential to strengthen Czech nuclear expertise across the industry. Rolls-Royce SMR
ČEZ says the scope covers the project plan and all licensing paperwork required for building permits, aiming to lock in approvals before 2030. The Czech utility holds a 20% stake in Rolls-Royce SMR. Nearly 70% of ČEZ is owned by the Czech state, which is moving toward taking full control.
The nuclear deal gives Rolls-Royce a political win, though it’s just one piece of a broader turnaround. The company posted £20.1 billion in underlying revenue and £3.46 billion in operating profit for 2025. Looking ahead, it’s guiding for underlying operating profit between £4.0 billion and £4.2 billion in 2026.
Still, shares didn’t hold up as the week wrapped. Rolls-Royce lost 2.65%, settling at 1,129.40 pence on Friday—pulling back from its 52-week peak set in February. The FTSE 100 tracked lower, too.
The Czech deal comes on the heels of a UK agreement with Great British Energy–Nuclear, unveiled April 13, which kicks off design work for Britain’s first SMRs. According to the UK government, the project should generate roughly 3,000 jobs at peak construction, plus additional roles across the broader supply chain.
Rolls-Royce continued to invest in its defence manufacturing operations this week, launching an additive manufacturing development cell in Bristol, backed by UK Ministry of Defence funding. The process—using metal powders and lasers to add layers for intricate parts—should help slash lead times, trim material waste, and reduce costs for the next wave of aircraft-engine components, according to the company.
Signing contracts doesn’t clear the major hurdles. The Czech reactor project is still waiting on permits, a financing plan, and crucially, state backing; “government support is essential” for something this big, Beneš said. Nuclear builds, especially first-of-a-kind efforts, have a track record of busted timelines and rising costs. The latest Czech schedule already signals a slower rollout than previously envisioned. Rolls-Royce SMR
Still, for Rolls-Royce, the bottom line is clear: management wants to shift SMR activities out of the “someday” category and onto firm European order books, even as aerospace and defence keep bringing in the bulk of profits. Chief executive Tufan Erginbilgic described the Czech deal as a “critical milestone,” noting it follows the UK progress made earlier this month. Rolls-Royce
