Rolls-Royce Holding PLC (RYCEY)
OTHER OTC:RYCEY
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
Based on 0 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a strongly positive operational and financial transformation story: significant revenue, profit and free cash flow growth in 2025, upgraded midterm targets, major LTSA and aftermarket margin improvements, a substantial multiyear buyback and rising shareholder distributions. Challenges remain—notably supply‑chain and product cost inflation, near‑term shop‑visit and LTSA timing effects, higher investments and some one‑off accounting impacts—but management provides clear plans and targets to mitigate these and highlights that much of the LTSA cash upside will accrue beyond the midterm. Overall, the positive achievements and upgraded guidance outweigh the headwinds.Company Guidance
Group Revenue and Profit Growth
Group revenue grew 14% to GBP 20.0 billion and group operating profit rose ~40% to GBP 3.5 billion (5x vs 2022). Operating margin improved by 3.2 percentage points to 17.3%.
Strong Free Cash Flow and Net Cash Position
Free cash flow increased by over GBP 800 million to GBP 3.3 billion. The group closed 2025 with net cash of GBP 1.9 billion, approximately GBP 1.5 billion higher year‑on‑year.
Upgraded Midterm Financial Targets
Upgraded 2028 midterm targets: operating profit GBP 4.9–5.2 billion, operating margin 18%–20%, free cash flow GBP 5.0–5.3 billion, and return on capital 23%–26%.
Multiyear Share Buyback and Dividend Lift
Announced first-ever multiyear buyback of GBP 7–9 billion for 2026–2028 (GBP 2.5 billion in 2026, incl. GBP 200m tranche done). Final dividend 5p (full year 9.5p), up 60% year‑on‑year with a 32% payout ratio.
Civil Aerospace Outperformance
Civil Aerospace operating profit rose to GBP 2.1 billion (+41%), operating margin 20.5% (+3.9 pp), revenues GBP 10.4 billion (+15%), service revenue +21%, large engine revenue +30%. Total shop visits increased 10% to 1,440 (large engine refurbs 517 vs 430).
LTSA and Aftermarket Margin Improvements
Contract margin expected to increase ~19 percentage points between 2022 and 2028, driving ~28 percentage points income‑statement LTSA margin improvement over same period. Management now expects LTSA margins 8 percentage points higher than prior guidance and contract margins 2 percentage points higher.
LTSA Cash Value and Long Horizon Upside
Cash value of LTSA contracts has more than quadrupled since 2022; over two‑thirds of the increase driven by Rolls‑Royce actions (not volume). Only ~25% of incremental LTSA cash will be realized by end‑2028, implying majority of cash benefits lie beyond the midterm.
Power Systems Strong Performance
Power Systems operating profit grew 60% to GBP 852 million, margin 17.4% (+4.5 pp). Revenues up 19% to GBP 4.9 billion; Power Generation and Governmental revenues up 30% and 14% respectively; data center revenue +35%. Battery storage achieved breakeven.
Defence Momentum and Backlog
Defence revenues GBP 4.8 billion (+8%; +14% ex one‑off), operating profit GBP 689 million (+9%), operating margin ~14.4%. Order intake GBP 5.5 billion, backlog GBP 17.4 billion (book‑to‑bill 1.1x).
Efficiency, Procurement Savings and Return on Capital
Delivered GBP 600 million of efficiency & simplification benefits and GBP 1.2 billion gross third‑party procurement savings since 2022. Return on capital rose to ~18.9% (~4x vs 2022).
RYCEY 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
RYCEY Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 26, 2026 | $17.73 | $18.28 | +3.08% |
Jul 31, 2025 | $13.08 | $14.13 | +8.04% |
Feb 27, 2025 | $7.91 | $9.12 | +15.31% |
Aug 01, 2024 | $5.70 | $6.08 | +6.58% |
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 Holding PLC (RYCEY) report earnings?
Rolls-Royce Holding PLC (RYCEY) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Rolls-Royce Holding PLC (RYCEY) earnings time?
Rolls-Royce Holding PLC (RYCEY) 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 RYCEY EPS forecast?
RYCEY EPS forecast for the fiscal quarter 2026 (Q2) is 0.22.