Rolls-Royce has announced an upgrade to its financial forecasts for the full year, with projected cashflow now expected to be £200m higher than previously predicted, reaching £3.8bn-£4bn. Operating profits are also forecast to increase by £700m, moving to £4.7bn-£4.9bn.
The engine-maker's current valuation stands at £120bn, putting it roughly neck and neck with miner Rio Tinto for fourth place in the Footsie. This valuation remains behind Shell (£185bn), AstraZeneca (£198bn), and HSBC (£274bn).
Rolls-Royce's power systems division is reportedly gaining significant attention, with a 55% increase in its order book for power generation in the half-year. This growth is attributed to demand from AI datacentres in the US for diesel systems, gas-fired turbines, and potential future use of small modular reactors (SMRs).
The company is also exploring a potential re-entry into the market for narrowbody aircraft engines, a move that could significantly expand its market reach. This initiative may involve requests for financial support from the UK Treasury.