Rolls-Royce Holdings (RYCEF)
OTHER OTC:RYCEF
Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.22Last Year’s EPS
0.21Same Quarter Last Year
Moderate Buy
Based on 11 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strong and broad operational and financial recovery with upgraded guidance, materially higher margins, significant free cash flow generation and a major shareholder return program. Civil Aerospace and Power Systems delivered standout profit and cash improvements, operational initiatives (time on wing, AI) are already driving benefits, and long-term growth opportunities (SMR, UltraFan, data center engines) were highlighted. Key near-term challenges are persistent supply-chain and product-cost inflation, some non‑recurring contractual gains in 2025, and timing of LTSA cash realization (largely post‑2028). On balance, the positive trends — upgraded targets, robust cash generation, balance sheet repair and a sizeable buyback/dividend program — outweigh the stated headwinds.Company Guidance
Strong Group Financial Performance
Group revenue grew 14% to GBP 20.0bn; underlying operating profit GBP 3.5bn (5x vs 2022); operating margin 17.3% (more than tripled vs 2022); free cash flow GBP 3.3bn (up >GBP 800m YoY); return on capital ~18.9% (≈4x vs 2022).
Upgraded Guidance and Ambitious Midterm Targets
2026 guidance: underlying operating profit GBP 4.0–4.2bn and free cash flow GBP 3.6–3.8bn. Upgraded 2028 midterm targets: operating profit GBP 4.9–5.2bn, operating margin 18–20%, free cash flow GBP 5.0–5.3bn, return on capital 23–26%.
Major Shareholder Returns Program
Board recommended final dividend 5p (full year 9.5p, +60% YoY, 32% payout ratio). Announced first multiyear buyback program GBP 7–9bn (2026–2028), with GBP 2.5bn planned in 2026 (GBP 200m tranche already completed); intends to return >75% of free cash flow to shareholders 2026–28.
Civil Aerospace Outperformance and Aftermarket Momentum
Civil operating profit GBP 2.1bn (+41% YoY) with margin 20.5% (+3.9pp); revenues GBP 10.4bn (+15%); service revenue +21%; large engine revenue +30%; total shop visits 1,440 (+10%); significant LTSA/commercial improvements (net contractual margin improvements GBP 392m, gross GBP 553m).
Power Systems: Rapid Growth and Profitability
Power Systems operating profit GBP 852m (+60% YoY) and margin 17.4% (+4.5pp); revenue GBP 4.9bn (+19%); Power Generation revenue +30% (data center +35%); order intake GBP 6.1bn (+21%); battery storage achieved breakeven.
Balance Sheet Strength and Cash Discipline
Net cash position GBP 1.9bn (≈GBP 1.5bn improvement YoY); working capital released >GBP 400m; gross procurement savings GBP 1.2bn and efficiency/simplification benefits GBP 600m since 2022; credit ratings upgraded to strong investment grade.
Operational Improvements and Digital/AI Adoption
Time-on-wing target >100% durability with >50% already delivered; XWB-84 improvements deliver >1% fuel burn benefit and 44% reduction in XWB-84 shop visit costs already achieved (target to halve by midterm). Launched AiRR (AI platform); first EASA-approved AI agent reduced technical variance effort by ~75%.
Long‑term Growth Platforms: SMR, UltraFan and Series 4000
SMR business targeted to be cash generative by 2030 with ambition to commission 2 SMRs/year by mid-2030s and 8/year at maturity (TAM >400 SMRs by 2050). UltraFan/narrow-body demonstrator progressing (ground test target by 2028); Series 4000 for data centers targeted for 2028 with ~20% higher power density.
RYCEF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
RYCEF Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 26, 2026 | $17.90 | $18.45 | +3.10% |
Jul 31, 2025 | $13.04 | $14.12 | +8.28% |
Feb 27, 2025 | $7.90 | $9.07 | +14.81% |
Aug 01, 2024 | $5.70 | $5.99 | +5.09% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Rolls-Royce Holdings (RYCEF) report earnings?
Rolls-Royce Holdings (RYCEF) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Rolls-Royce Holdings (RYCEF) earnings time?
Rolls-Royce Holdings (RYCEF) earnings time is at Jul 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
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What is RYCEF EPS forecast?
RYCEF EPS forecast for the fiscal quarter 2026 (Q2) is 0.22.