London, May 1, 2026, 12:27 (BST)
- Rolls-Royce posted a solid first quarter and stuck with its 2026 profit and cash-flow targets.
- The update lands at a time when Middle East turmoil is straining long-haul routes—the lifeblood for engine-service revenue.
- Investors are eyeing whether the Trent 1000 XE might win back some Boeing 787 deals from GE Aerospace.
Rolls-Royce Holdings plc stuck with its 2026 profit and cash-flow outlook, saying it can handle the hit from Middle East turmoil—another hurdle for the British engine maker’s turnaround efforts. Forecasts for underlying operating profit remain at £4.0 billion to £4.2 billion. Free cash flow guidance is unchanged at £3.6 billion to £3.8 billion.
Timing is key here: Rolls-Royce makes much of its money from servicing engines on long-haul jets, and its revenue depends partly on engine flying hours. Reuters noted Rolls-Royce engines are found on Airbus A350s and Boeing 787s. Airlines have dealt with global air travel disruptions since the Iran war flared up in late February.
Shares jumped 7.6% on Thursday following the guidance update, giving the FTSE 100 a lift, Reuters said. By early Friday, though, some of those gains slipped away, with the stock quoted at 1,169.40 pence on Cboe Europe at 07:24 a.m. EDT, down 1.07%.
Chief Executive Tufan Erginbilgic told shareholders Rolls-Royce was off to a “strong start” and said he expects to “fully mitigate” the present financial hit from the disruption. Profit and cash flow growth, the company noted, continues to come primarily from its own cost moves, pricing, and operational changes. Investegate
Large engine flying hours (EFH) climbed 5% in the first quarter, reaching 115% of the 2019 figure. Rolls-Royce is sticking to its forecast for EFH to land somewhere between 115% and 120% of 2019’s mark for the year. Trent XWB engine usage at Middle Eastern carriers has bounced back, now matching pre-conflict levels.
The operational story came through clearly. The company reported an 18% increase in large engine deliveries for the quarter, while shop visits climbed 12%. By late April, the tally of aircraft on ground—jets stuck waiting for service or spares—had dropped into single digits.
Trent 1000 XE takes the spotlight here. On April 29, Rolls-Royce announced that LATAM Airlines picked the engine upgrade for three Boeing 787 Dreamliners. “Operational efficiency” is the key, according to LATAM CEO Roberto Alvo, as the airline pushes ahead with its long-haul expansion plans. Rolls-Royce
The order itself is modest, but it’s dropping into a market where GE Aerospace has recently been ahead on 787 engine choices. LATAM, according to Aviation Week, had already picked GE’s GEnx-1 engines for a 2023 787 deal after facing durability problems with its older Trent 1000s. GE also secured big 787 engine wins with both Delta Air Lines and United Airlines earlier this year, Aviation Week said.
Rolls-Royce reported that its defence segment benefited from stronger aftermarket activity and a jump of over 20% in original-equipment deliveries—so, more new kit going out the door, not just service contracts. Power Systems, the division handling gas and diesel engines and related products, said orders for power generation surged roughly 50% from the prior year, fueled mainly by demand from data centres. The order backlog at the end of March hit £7.3 billion.
Small modular reactors—those compact nuclear plants designed for replication—finally started bringing in revenue. Rolls-Royce pointed to contracts for the UK’s Anglesey project and a Czech collaboration with ČEZ, both now in execution, with revenue and profit showing up this year.
Execution is the sticking point. Hargreaves Lansdown equity analyst Aarin Chiekrie pointed out that the latest Rolls-Royce engines have demanded more upkeep than customers bargained for, warning that if those problems linger, profits could take a hit down the road. Chiekrie also noted shareholder returns aren’t a sure thing, despite the company’s healthier balance sheet and its buyback plans.
At the moment, Rolls-Royce is relying on its cash reserves. The company reported it has finished over £750 million of the £2.5 billion 2026 segment in its £7 billion to £9 billion share buyback, which stretches to 2028. Investors will see half-year numbers on July 30.
