Rolls-Royce reports positive trading after securing major orders

Rolls-Royce has reported a positive period of trading in which its civil aerospace and defence businesses secured major deals.

Last week, the engineering giant, which has its civil aerospace and defence businesses in Derby, held its AGM and issued a trading update.

In that update, the firm said its financial performance was improving thanks to changes to workstreams and good end market demand for its products and services.

The firm said it was continuing to win new orders – including its biggest ever order of Trent XWB-97 engines, with a Memorandum of Understanding for 68 engines (plus 20 options) for Air India.

Meanwhile, its defence business also continued to win new work in the period – most notably the announcement that the AUKUS submarine programme will be powered by Rolls-Royce nuclear reactors built in Derby.

Addressing shareholders, chief executive Tufan Erginbilgic said: “We are transforming Rolls-Royce into a high quality and competitive business with a strong balance sheet and growing profit, cash flows and returns.

“We are already benefitting from the actions we are taking as well as recovery and growth in our end markets.

“We announced several changes to the executive team in March to support the transformation, adding leaders with proven track records of delivery and high-performance.

“We are making good progress and our financial performance year-to-date is in line with expectations.

“I’d like to thank everyone at Rolls-Royce for their hard work and commitment so far. I am confident that, together, we can achieve great results.”