LONDON, April 30, 2026, 11:05 (BST)
- Rolls-Royce stuck with its 2026 profit and cash-flow targets, saying it saw a strong start to the first quarter.
- Large engine flying hours reached 115% of 2019, a crucial metric since the company’s service revenue depends on engines being in the air.
- Investors now have clearer signals on airline disruptions, data centre power consumption, and where Rolls-Royce stands on its Trent 1000 recovery.
Rolls-Royce Holdings plc stuck to its 2026 profit and cash-flow targets on Thursday. The company pointed to stronger engine flying hours and steady demand in defence and power systems as factors offsetting the impact of Middle East conflict disruptions. Shares moved higher in early London trade following the AGM update. ([Rolls-Royce][1])
This is hitting now because Rolls gets part of its revenue from the number of hours its engines spend in the air. It supplies engines for both Airbus A350 and Boeing 787 widebody jets. Airlines running those planes have lately dealt with route shifts, cancellations, and pricier fuel, all linked to the Iran war.
The company is sticking with its 2026 targets: underlying operating profit between £4.0 billion and £4.2 billion, free cash flow in the £3.6 billion to £3.8 billion range. Those profit figures exclude certain items to focus on the core business, and the free cash flow number shows what’s left after expenses and investment. Chief Executive Tufan Erginbilgic called it a “strong start to the year,” adding that Rolls expects to “fully mitigate” the present financial fallout from the disruption. ([Rolls-Royce][1])
Civil aerospace drove the story again. Large engine flying hours climbed 5%, reaching 115% of where they stood in 2019 for the three months through March 31. Rolls maintained its full-year guidance, still targeting 115% to 120% of 2019’s mark. The company pointed out that its Trent XWB engines powering Middle Eastern carriers are now back at pre-conflict flying hours. ([Rolls-Royce][1])
Rolls shares picked up 2% in early trading, according to Reuters. The stock had slipped 9% across the past three months amid conflict-related worries, yet it’s still showing a gain of over 600% since Erginbilgic took over as chief executive in 2023 and launched his profitability drive.
Still, the risk hasn’t disappeared. Rolls pointed to ongoing uncertainty tied to the Middle East conflict, noting the company continues to monitor both direct and indirect impacts on the industry. Another setback for long-haul demand—or an extended stretch of elevated fuel costs—has the potential to drag on engine flying hours and squeeze service revenue, even if initial fallout is absorbed. ([Rolls-Royce][1])
Operational numbers landed better than expected. Rolls reported an 18% jump in large engine original-equipment deliveries for the first quarter, with large engine shop visits up 12%. The tally of aircraft on ground—planes sidelined for maintenance or parts—dropped to the single digits by the end of April. The company is sticking with its goal of hitting zero AOG in the second half. ([Rolls-Royce][1])
Defence original-equipment deliveries climbed over 20% from a year ago, outpacing civil aerospace. For Power Systems — the mtu engine and equipment unit — first-quarter orders for gas and diesel engines jumped roughly 50% compared with last year, thanks in part to strong demand from data centres and governments. As of March 31, the order backlog hit £7.3 billion. ([Rolls-Royce][1])
Less than 24 hours after Rolls confirmed that LATAM Airlines picked Trent 1000 XE engines for three Boeing 787s, the trading update hit. “LATAM has returned to Rolls-Royce as its Boeing 787 engine partner,” CEO Erginbilgic noted. LATAM chief Roberto Alvo added the deal boosts both operational efficiency and the carrier’s long-haul ambitions. ([Rolls-Royce][3])
The order itself is minor, but it feeds into a larger battle for dominance. Aviation Week had previously noted that LATAM opted for GE Aerospace’s GEnx engines to power a later batch of 787s, after running into durability headaches with certain Trent 1000 models. Now, with Rolls landing this latest deal, the publication calls it a potentially pivotal move as the company tries to claw back share of the Boeing 787 engine market.
Pressure continues in the engine sector. Airbus said this week that first-quarter core profit fell by more than half, blaming delivery setbacks linked to Pratt & Whitney engines from RTX. Those issues have handed Boeing a chance to regain lost ground. Airbus boss Guillaume Faury noted talks with Pratt remain unresolved, although discussions are ongoing on both sides.
Rolls highlighted projects outside its core jet engine business. The small modular reactor division wrapped up contracts for three reactors in Anglesey, Wales, and hammered out commercial terms covering as many as six in the Czech Republic. These small modular reactors are factory-built nuclear plants, scaled down from traditional designs. The company noted it has already finished over £750 million of a £2.5 billion share buyback planned through 2026, with half-year results scheduled for 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
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[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
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