2023 Full Year Results

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2023 Full Year Results

2023 Full Year Results materials

2023 Full Year Results Press Release 
pdf – 1.4MB
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2023 Full Year Results Presentation 
pdf – 1.0MB
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2023 Full Year Results Appendices 
pdf – 581KB
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Step-change in performance driven by transformation; strong momentum into 2024

  • Underlying operating profit of £1.6bn and underlying margin of 10.3%, reflecting the impact of our strategic initiatives, with commercial optimisation and cost efficiency benefits across the Group 
  • Record free cash flow of £1.3bn driven by operating profit and continued LTSA balance growth 
  • Return on capital more than doubled to 11.3% reflecting improved operating profit, disciplined capital allocation and working capital management 
  • Statutory net cash flow from operating activities of £2.5bn, £1.0bn higher year on year 
  • Net debt of £2.0bn, down from £3.3bn at the end of 2022, as we strengthen the balance sheet and build resilience 
  • 2024 guidance: continued progress with underlying operating profit between £1.7bn and £2.0bn and free cash flow between £1.7bn and £1.9bn 

2023 Full year group financial performance

Underlying operating profit
£1,590m

Underlying operating margin
10.3%

Free cash flow
£1,285m

Return on capital
11.3%

Group underlying revenue
£15,409m

Underlying revenue by business in 2023

color x y actual prefix postfix
#006dff Civil aerospace 48%     %
#007588 Defence 26%     %
#a22bff Power Systems 26%     %

Tufan Erginbilgic, Chief Executive

“Our transformation has delivered a record performance in 2023, driven by commercial optimisation, cost efficiencies and progress on our strategic initiatives. This step-change has been achieved across all our divisions, despite a volatile environment with geopolitical uncertainty, supply chain challenges and inflationary pressures.
We are managing the business differently and our significant performance improvement in the year reflects the hard work and focused actions of all our teams. We are also continuing to invest to drive future sustainable growth. Our strong delivery in 2023 gives us confidence in our 2024 guidance and is a significant step towards our mid-term targets. We are unlocking our full potential as a high-performing, competitive, resilient, and growing Rolls-Royce.”

Tufan Erginbilgic
CEO

Contact our Investor Relations team

You can reach our investor relations team at [email protected]