The largest division, Civil Aerospace, manufactures the Trent family of engines (Trent XWB, Trent 1000, Trent 7000) that power widebody jets like the Airbus A350 and Boeing 787. The Defence division is the sole provider of nuclear propulsion for the UK's Royal Navy, and in 2026, is in hyper-growth mode due to the AUKUS pact for Australia's future nuclear submarines. The Power Systems division has become a key "AI Play," supplying massive emergency backup generators to data centers for Google, Microsoft, and Amazon.
Cyborg Score Rationale
By 2025/2026, the company had achieved its mid-term financial targets two years early, reinstating dividends and launching a £1 billion share buyback. Rolls-Royce shares have hit fresh record highs every single trading day so far this year, with a nearly 1,200% gain over the past five years. The company demonstrates exceptional operational turnaround and secular growth tailwinds across aerospace recovery and AI data center infrastructure.
Top Insights
Free cash flow was £1.6bn (H1 2024: £1.2bn), driven by strong operating profit and continued long-term service agreement (LTSA) balance growth.
Power systems order intake for data centers increased by 85% year-on-year.
The stock's price-to-earnings ratio for the coming 12 months has reached over 36, a valuation higher than most peers.
Defense business accounts for about 25% of underlying revenue and barely grew year-on-year in its last reported half-year results.
Named Competitors
GE Aviation — Commercial aircraft engines and defense
Pratt & Whitney — Commercial and defense aerospace engines
CFMI — Narrow-body commercial aircraft engines
BAE Systems — Defense aerospace and systems
Recent Developments
(February 2026) Stock at record highs every trading day of 2026; management preparing for full-year results on Feb 26
(July 2025) H1 2025 results showed £1.6bn free cash flow, with data centers business order intake up 85% YoY
(January 2026) RYCEY stock up 12.9% YTD with record highs; data centers recognized as emerging growth driver
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