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We develop and deliver complex power and propulsion solutions for safety-critical applications in the air, at sea and on land.

Our products and service packages enable our customers to connect people, societies, cultures and economies together.

Products & Services

We develop and deliver complex power and propulsion solutions.

For more than 100 years we have been at the forefront of innovation. Helping to power, protect and connect the modern world.

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Help us deliver better power for our changing world.

Doing more with less

We have a fundamental role in meeting the environmental and societal opportunities and challenges that the world faces.

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Rolls-Royce Half Year results

Rolls-Royce announced Half Year results on Thursday 1 August 2024.

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Our Strategy

Rolls-Royce is Transforming

Rolls-Royce is one of the most enduring and iconic brands in the world and has been at the forefront of innovation for over a century. Designing, building and servicing systems that provide critical power to customers, where safety and reliability are paramount.

We are proud to be a business that has truly helped to shape the modern world and are committed to always being 
a force for progress; powering, protecting and connecting people everywhere.

Our vision

We want to ensure that the excellence and ingenuity that has shaped our history continues into our future. Our multi-year transformation programme is turning Rolls-Royce into a high-performing, competitive, resilient and growing company. So that we are better able to chart our own destiny and do things tomorrow that we cannot do today. Enabling us to invest to grow, allowing us to continue to deepen our world-class engineering and technology capability; lead next generation thinking for our customers and play our part in the energy transition.

Annual Report 2023

We have set out a bold and achievable plan that will take us to the next level: a step change in our performance that will create a high-performing, competitive, resilient and growing business. Our performance in 2023 gives us confidence that we can deliver on our transformation.

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Mid-term targets

£2.5-£2.8bn

Operating profit

13-15%

Operating margin

£2.8-£3.1bn

Free cash flow

16-18%

Return on capital

Our Strategy

We are the power behind some of the most critical technologies used in the air, at sea and on land.  Across our divisions – Civil Aerospace, Power Systems, Defence and in our unique nuclear capabilities – we are in attractive markets with strong long-term growth. We provide a range of differentiated technologies, unique expertise in whole systems integration and have an unrivalled brand heritage and track record for longstanding customer relationships and powerful partnerships. 

These strengths are underpinned by a relentless focus on safety and the deep passion and expertise of our people.

We have a clear roadmap for how to build on those strengths, unlock our full potential and win together as one Rolls-Royce, centred on four strategic pillars:

Our strategic framework

Portfolio choices and partnerships

We’re bringing razor-sharp focus to grow those areas where we have strategic advantage due to our strong market position and differentiated, distinctive offering.

Strategic initiatives

We will continue to deepen our competitive advantage with key initiatives in each: widebody, business aviation, combat and transport, mobile, and stationary power systems.

Efficiency and simplification

We’re creating sustainable cost efficiency. We will do this through a simpler organisation, Group-wide procurement excellence, and rigorous planning and budgeting to embed more cost control across the Group.

Lower carbon and digitally enabled businesses

We’re embracing the energy transition for ourselves and our customers. We will participate in growing markets where we have the capability to win. We’re already contributing to a low-carbon world.

Strategic initiatives with enduring strength

We have advantaged positions in commercial aerospace, global defence and global power generation. At the heart of our enduring strength is the unrivalled commitment, integrity and technical expertise of our people, as well as our focus on safety and maintaining the highest standards.

Brand strength

Rolls-Royce is an enduring and iconic brand which is a byword for quality.

Brand strength

Our global heritage and deep reserves of trust open doors in any market. Rolls-Royce is an enduring and iconic brand which is a byword for quality.

Engineering excellence

We can deliver whole-engine design and system integration wherever we work.

Engineering excellence

Rolls-Royce has the unique capability to deliver whole-engine design and system integration, in every sector in which we operate. We apply the latest technology to deliver engineering solutions that meet the most complex, high-stakes challenges for our customers. We can do this across every sector in which work, driving the kind of ‘services thinking’ that makes markets.

Experienced partner

Decades of collaboration experience allow us to create highly effective partnerships with customers, suppliers and investors.

Experienced partner

Decades of collaboration have given Rolls-Royce relationships and capabilities that allow us to create highly effective partnerships with customers and suppliers. We’re also increasingly using these qualities to create joint ventures with investors. These qualities mean that we can meet our customers’ immediate needs, while continuing long-term innovation to help tackle their broader strategic challenges.

Deep customer relationships

Our whole-system design and integration capability helps us build strong, collaborative relationships.

Deep customer relationships

Our whole-system design and integration capability has helped us build strong, collaborative, win-win relationships, long-term institutional knowledge and embedded expertise. That capability also underpins seamless delivery and service support, and provides the real-time and historic data that enables customers to make the most of their assets.

Our businesses

We have a differentiated position with a strong portfolio of products and technologies in attractive markets. Our core operating businesses cover four sectors:

Civil Aerospace

We’re a major manufacturer of aero engines for large commercial aircraft, regional jet and business aviation.

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Defence

We’re a market leader in aero engines for military transport and patrol aircraft, as well as combat and helicopters, with significant experience in

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Power Systems

We’re a leading provider of high-speed reciprocating engines, complete propulsion systems and distributed energy solutions.

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Nuclear

We have unrivalled capability and the broadest portfolio in the industry, in both defence and commercial applications.

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Differentiated and advantaged technologies

Advantaged technologies

We consistently create complex, detailed parts to exceptionally high specifications through proprietary advanced techniques, along with solutions that integrate into larger systems seamlessly. Our expertise in control systems and power electronics underpin the high performance and reliability of our products.

UltraFan

One of our leading technologies for next-generation aircraft, the UltraFan^TM programme increases the efficiency of aircraft engines.

Nuclear

We’re creating the UK’s first domestic nuclear technology in more than 20 years with trusted and proven small modular reactor design.

Our journey to net zero

We plan to achieve net zero across our value chain by 2050 at the latest, through our decarbonisation strategy. This includes a target of net zero emissions from our operations and facilities by 2030. We have quantifiable, trackable short-term goals to ensure this. Our teams will work with our suppliers, partners and logistics partners to set their net zero targets.

We want to help the sectors in which we operate get to net zero too. This includes our contributions towards sustainable aviation fuel (SAF) in aerospace, battery storage in power systems, and civil nuclear technology.

Building a stronger Rolls-Royce

We must become a high-performing, competitive, resilient and growing business if we are to chart our own destiny.

This will earn us the right to make the choices that can secure the next chapter of our extraordinary company:

We must become a primary partner to customers as they face the challenges and opportunities that will define the future.
We must unlock our full potential, translating engineering excellence into financial performance.
We must create more opportunities for our people, making everyone part of a more energising, rewarding, and world-leading team.

We will be clear in how we measure progress towards our four strategic goals:

A high performing company – improving our operating profit
A competitive company – with a competitive operating margin
A resilient company – through our return on capital
A growing company – by growing sustainable free cash flow

The journey is as important as the destination. Reaching each milestone will build momentum with customers, colleagues, investors, and partners. It will also drive confidence through every part of the business. At the same time, this will lay the strong financial foundations required to unlock the full potential of Rolls-Royce.

We’re building an industry-leading business for the benefit of all: customers, investors, partners, shareholders, governments, society, and our colleagues.

This will build one Rolls-Royce: a company that can ensure the excellence and innovation that helped shape the modern world endures long into the future by fully realising its potential for greatness.