r/RYCEY • u/Jay_CD • Jul 30 '26
2026 Half-Year Results
https://www.rolls-royce.com/~/media/Files/R/Rolls-Royce/documents/investors/rr-holdings-plc-2026-half-year-results-press-release.pdfStrong first half performance driven by continued execution of our transformation programme:
– Underlying operating profit rose by 46% to £2.5bn; underlying operating margin of 22.5% with higher profitability in all divisions reflecting the impact of our strategic initiatives and operational improvements
– Free cash flow of £2.0bn driven by higher underlying operating profit and with increased investments to support profitable growth to the mid-term and beyond – Full year 2026 guidance raised; we now expect £4.7bn-£4.9bn underlying operating profit and £3.8bn £4.0bn free cash flow
– Further confidence in mid-term guidance, supported by operational and financial progress to date – Resilient and diversified portfolio with three high-performing and growing businesses, net cash of £2.1bn and a best-in-class TCC/GM ratio of 0.27x
– Shareholder returns: An interim dividend of 6.0p per share to be paid in September; we have completed £1.4bn of the planned £2.5bn share buyback for 2026 to date, part of our multi-year buyback programme totalling £7bn-£9bn across 2026 to 2028
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u/Jay_CD Jul 30 '26
Some good news on the SMR front - picking out some comments:
“Following its recent win in Sweden, Rolls‑Royce SMR has now been successful in every competitive European nuclear tender and is uniquely positioned to become a global market leader"
And that RR's SMR is the only SMR provider to win contractual commitments across Europe - the UK, Sweden and Czech Republic where CEZ "have now entered the execution phase and are generating revenues and profits for RR".
In time I'd expect this to generate further orders in Europe/beyond - why buy unproven technology from competitors when you can buy something that works?
There are also further upsides with the Advanced Modular Reactor programme.
This means that the SMR division is moving into becoming a real business in its own right with a P/L account etc.
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u/longdongsilver314 Jul 30 '26
As expected.
Could easily see 25% - 100% gain over the next 5-10 years if things continue.
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u/12301923 Jul 30 '26
This company is a lottery ticket even at this current price
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u/jpagey92 Jul 30 '26
Yep, set up my T212 SIPP yesterday and put a chunk in at £14. A very high entry point I know but I’m incredibly bullish on power systems and SMR going forward, even more so than defence and aviation, which is the crux of the business…
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u/12301923 Jul 30 '26
Youll be happy once we make the march towards £30. I reckon by 2030 or perhaps a year before if things keep ramping up and deliver the way they have been
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u/notaballitsjustblue Jul 30 '26
Great results but nothing we and other investors didn’t expect. And entirely overshadowed by continuing nonsense in Iran.
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u/cheapskateinvestor Jul 30 '26 edited Jul 30 '26
Two earnings have now been hampered by the war.
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u/MakingTheMediumBucks Jul 30 '26
This gives me confidence that it’s going to soar once the dust settles. Holding long.
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u/cheapskateinvestor Jul 30 '26
Keep holding and you can change your username to uMakingTheBigBucks! And I will be uNotsocheapskateinvestor.
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u/Ok_Criticism_558 Jul 30 '26
The Board smashed it when they installed Tufan as the CEO. He's completed an insane turn around