LONDON, April 30, 2026, 11:05 (BST)
- Rolls-Royce kept its 2026 profit and cash-flow guidance unchanged after what it called a strong first-quarter start.
- Large engine flying hours rose to 115% of 2019 levels, a key measure because the company earns service revenue as engines fly.
- The update gives investors a firmer read on airline disruption, data-centre power demand and Rolls-Royce’s Trent 1000 recovery.
Rolls-Royce Holdings plc held its 2026 profit and cash-flow forecasts on Thursday, saying improved engine flying hours and demand across defence and power systems were helping it absorb disruption from the Middle East conflict. Shares rose in early London trading after the AGM update. ([Rolls-Royce][1])
That matters now because Rolls is paid in part by airline customers for the hours they fly aircraft powered by its engines. The company supplies engines for Airbus A350 and Boeing 787 widebody jets, and airlines have faced cancellations, higher fuel costs and route changes tied to the Iran war.
The company said it still expects 2026 underlying operating profit of £4.0 billion to £4.2 billion and free cash flow of £3.6 billion to £3.8 billion. Underlying operating profit strips out some items to show the performance of the core business; free cash flow is cash left after running and investing in the company. Chief Executive Tufan Erginbilgic said Rolls had made a “strong start to the year” and expected to “fully mitigate” the current financial impact of the disruption. ([Rolls-Royce][1])
Civil aerospace remained the central focus. Large engine flying hours, the time engines spend in service, rose 5% to 115% of 2019 levels in the three months to March 31, and Rolls kept its full-year forecast at 115% to 120% of 2019 levels. The company said Middle Eastern airline flying hours for Trent XWB engines had recovered to pre-conflict levels. ([Rolls-Royce][1])
Rolls shares were up 2% in early deals, Reuters reported. The stock had lost 9% over the previous three months on concerns about the conflict, but remains up more than 600% since Erginbilgic became chief executive in 2023 and began a plan to lift profitability.
But the risk is not gone. Rolls said the Middle East conflict had created uncertainty for the industry and that it was still watching for direct and indirect effects. A fresh hit to long-haul flying, or a longer period of high fuel prices, could slow engine flying hours and pressure service revenue even if the company offsets the first wave of disruption. ([Rolls-Royce][1])
Operational data were stronger than the market had feared. Rolls said large engine original-equipment deliveries rose 18% in the first quarter and large engine shop visits rose 12%. Aircraft on ground, or AOG, meaning planes unable to fly because of maintenance or parts issues, fell to a single-digit level at the end of April; Rolls said it still targets zero AOG by the second half. ([Rolls-Royce][1])
Outside civil aerospace, defence original-equipment deliveries rose more than 20% year on year. Power Systems, which sells mtu engines and power equipment, said first-quarter order intake across gas and diesel engines was about 50% higher than a year earlier, helped by data centres and government demand; its order backlog stood at £7.3 billion at March 31. ([Rolls-Royce][1])
The trading update landed less than a day after Rolls said LATAM Airlines had selected Trent 1000 XE engines for three Boeing 787 Dreamliners. Erginbilgic said LATAM had “returned to Rolls-Royce” as its Boeing 787 engine partner, while LATAM CEO Roberto Alvo said the agreement supported operational efficiency and long-haul growth. ([Rolls-Royce][3])
That order is small, but it touches a bigger competitive question. Aviation Week reported that LATAM had earlier picked GE Aerospace’s GEnx engine for a follow-on 787 order after durability problems with some Trent 1000 engines, and described the latest Rolls win as potentially significant in the fight to regain Boeing 787 market share.
The wider engine market remains strained. Airbus reported this week that first-quarter core profit more than halved as delivery delays tied to RTX-owned Pratt & Whitney engines hurt output, giving rival Boeing room to recover ground. Airbus CEO Guillaume Faury said there was still no agreement with Pratt, though both sides were working on the dispute and negotiations.
Rolls also pointed to work beyond jet engines. Its small modular reactor unit finalised contracts for three reactors in Anglesey, Wales, and commercial terms for up to six in the Czech Republic; small modular reactors are smaller nuclear plants designed for factory-style production. The company said it had completed more than £750 million of a £2.5 billion 2026 share buyback tranche and will report half-year results on July 30. ([Rolls-Royce][1])
[1]: https://www.rolls-royce.com/media/press-releases/2026/30-04-2026-rr-holdings-plc-agm-statement-and-trading-update.aspx “
Rolls-Royce Holdings plc AGM Statement and Trading Update | Rolls-Royce
“
[3]: https://www.rolls-royce.com/media/press-releases/2026/29-04-2026-rr-wins-back-latam-airlines-with-order-for-trent-1000-xe-engines.aspx “
Rolls-Royce wins back LATAM Airlines with order for Trent 1000 XE engines | Rolls-Royce
“
