Rolls-Royce shares take off as jet engine demand soars
Shares in the British engineering giant rocketed more than 10 per cent on Thursday morning after Rolls hiked its earnings forecast for the year.
The upgrade came after a bumper first-half saw profits hit £1.7billion - compared with £1.1billion a year earlier - and revenue jump 11 per cent from £8.2billion to £9.1billion.
Rolls-Royce raised its full-year profit guidance from between £2.7billion to £2.9billion to £3.1billion to £3.2billion.
And chief executive Tufan Erginbilgic said the company had overcome supply chain and tariff challenges and is on track to meet its target of profits of up to £3.9billion by 2028.
Erginbilgic has been credited with turning the 119-year-old company's fortunes around.
Rolls-Royce shares are up more than 85 per cent so far this year and are worth nearly 10 times more than they were when the former BP executive took the reins in 2023.
The half-year results gave 'further confidence for mid-term targets', Erginbilgic said, adding that the goal was 'a milestone not a destination' with 'growth prospects beyond the midterm'.
Demand for Rolls-Royce's jet engines has been boosted by the recovery of international travel since the pandemic.
In the first six months of the year, Erginbilgic said Rolls-Royce had improved the time its engines spend 'on wing' – meaning the hours engines spend powering planes before needing maintenance – and the profitability of its maintenance services.
And the company shrugged off the impact of Donald Trump's tariff war, including by taking 'pricing actions where appropriate' and making cost efficiencies.
'By February we were already ready,' Erginbilgic said.
'We didn't know what to predict. In an uncertain world, my personal belief is that a company's job is not to predict what s going to happen but to gear up to respond.
'They need to have the mindset and response capability.'
He added: 'Our processes were aligned before tariff numbers hit, we were very quick to go to the mitigations.'
Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, said: 'Rolls-Royce continues to soar above expectations, delivering yet another set of high-flying results and profit guidance upgrades.
'The group produces aeroplane engines for larger, long-haul planes. Revenues are being boosted by the upward trend in engine-flying hours, which are now cruising well above pre-pandemic levels.'
Chris Beauchamp, chief market analyst at IG, said: 'Rolls-Royce's near tenfold rally since early 2023 reflects strong execution, rising profits and growing cash returns.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Auto Car
28 minutes ago
- Auto Car
Four years after its UK launch, Hyundai is now betting big on Genesis with new dealer strategy
Close The surge in growth this century of the Hyundai Motor Group (HMG) means it is now the world's third largest car maker, behind only Toyota and the Volkswagen Group. The third brand in HMG alongside Hyundai and Kia is premium newcomer Genesis, and 'there is unwavering belief [within HMG] that it will be very successful,' says Ashley Andrew, Genesis UK managing director. 'Then you're just discussing the when and the how.' Strong stuff, yet as the likes of Infiniti, DS and probably even Lexus will testify, launching a premium brand is about as tough a test as you can get in today's car industry, particularly in Europe.
The Independent
28 minutes ago
- The Independent
Key things to know about how Elon Musk has boosted hard-right figures in Europe
Elon Musk may have tumbled from political grace in Washington, D.C., but as he seeks to build a new political party, his power on X — where he commands the most popular account — remains unchecked. Musk is a kingmaker on the platform he acquired in 2022 for $44 billion. He has used his influence to cultivate hard-right politicians and insurgent activists across Europe. A retweet or reply from Musk can lead to millions of views and tens of thousands of new followers, according to an Associated Press analysis of public data. That fact has not been lost on influencers who have tagged Musk persistently, seeking a reply or a retweet. It has also fueled concerns in Europe about foreign meddling -- not from Russia or China, but from the United States. 'Every alarm bell needs to ring,' Christel Schaldemose, a vice president of the European Parliament who works on electoral interference and digital regulation, told AP. The Associated Press analyzed more than 20,000 posts, which were compiled by Bright Data, over a three-year period from a sample of 11 European figures who had significant interactions with Musk and frequently promote a hard-right political or social agenda. These case studies are not meant to be representative of a broad universe; rather they showcase the ways in which Musk's engagement can have an impact on local influencers that share his views. Musk has sweeping power to direct attention on X Since acquiring Twitter in October 2022, Elon Musk's followers have more than doubled, to over 220 million. No other large account has shown such high or consistent growth. The result: If Musk's X account is his megaphone, it has gotten a lot bigger since he took over -- a change that has global implications. The accounts Musk has been promoting are part of a growing global alliance of nationalistic parties and individuals united in common cause to halt migration, overturn progressive policies and promote an absolutist vision of free speech, which has rattled the foundation of a trans-Atlantic bond that guided U.S. and European relations for over eight decades. Several of the accounts AP analyzed belong to people who have faced allegations of illegal behavior in their own countries. Tommy Robinson, an anti-immigrant agitator in the U.K., was sentenced in October to 18 months in prison for violating a court order blocking him from making libelous allegations against a Syrian refugee. Bjoern Hoecke, a politician from Germany's Alternative for Deutschland (AfD) party, was convicted last year of knowingly using a Nazi slogan in a speech. Italian vice premier Matteo Salvini was acquitted in December of allegations he illegally detained 100 migrants aboard a humanitarian rescue ship Among the others examined by AP: Alice Weidel, who helped lead Germany's Alternative for Deutschland (AfD) party to its best electoral showing this year; Eva Vlaardingerbroek, a Dutch influencer known as the 'shieldmaiden of the far-right'; Naomi Seibt, a German activist dubbed the 'anti-Greta Thunberg' now living in what amounts to political exile in Washington DC; Rubén Pulido and Foro Madrid, both associated with Spain's populist Vox party; and Fidias Panayioutou, a politician from Cyprus who has also advocated for Musk's companies. These accounts collectively gained roughly 5 million followers from the time Musk took over Twitter in October 2022 through January of this year. Most saw triple-digit percentage increases in their followers -- as high as 920%, or in one case of a tiny account exploding over that time, topping 6,000%. Even some accounts that grew more steadily on their own saw their follower counts sharply begin rising once Musk started interacting with them. Similarly, on days Musk interacted with a post, the number of views the account got soared — in most cases, accruing two to four times as many views, with a few seeing boosts 30 or 40 times their normal daily viewership. More established players in Musk's orbit -- like Italian Prime Minister Giorgia Meloni, whose ruling Brothers of Italy party has neo-fascist roots — benefit less when Musk interacts with them on X, AP found. Attention seekers know that getting Musk to engage can be transformative Musk's dominance creates a strong incentive for people to get Musk to engage with their content. Naomi Seibt, a German climate skeptic, pinged Musk nearly 600 times over the past three years. Musk finally engaged in June 2024, when he asked her to explain why the Alternative for Germany (AfD) party is so controversial in Germany. Since then, Musk has replied to, quoted or tagged Seibt more than 50 times, and her followers have grown by more than 320,000 since Musk took over the platform. On days Musk interacted with Seibt, her posts, on average, got 2.6 times as many views. 'I didn't intentionally 'invade' Elon's algorithm,' Seibt told AP. 'Obviously Elon has a lot of influence and can help share a message even with those who are usually glued to the legacy media, particularly in Germany.' Musk's online influence has real-world political and financial impact Alice Weidel, who helps lead the Alternative for Germany (AfD) party, saw her daily audience surge from 230,000 to 2.2 million on days Musk interacted with her posts on X. After Musk hosted a livestream with Weidel on X, vice president JD Vance broke protocol and met her in Munich. Weidel's party, which is fighting a lawsuit to block the German government's decision to designate it as an extremist group, went on to secure its best electoral showing ever. Musk has also used X to advocate for the leader of Italy's hard-right League party, Matteo Salvini. On days Musk interacted with Salvini's account, average views were more than four times higher than usual. Now serving as vice premier, Salvini has urged his government to move ahead with controversial contracts for Starlink and pushed back against European efforts to regulate content on X. And Musk has a friend in Brussels: Fidias Panayiotou — a 25-year-old social media influencer from Cyprus. Before winning a surprise seat in the European Parliament last year, the Cypriot spent weeks on a quest to get Elon Musk to hug him. In January 2023, his wish came true. Their embrace went viral. Since taking office, Panayiotou has praised X on the floor of the European Parliament, pushed back against regulations that impact the platform, and credited Musk with sparking his call to fire 80% of EU bureaucrats. Musk, evidently, was pleased. 'Vote for Fidias,' he wrote on X. 'He is smart, super high energy and genuinely cares about you!' The endorsement has been viewed 11.5 million times. —- —-
The Sun
29 minutes ago
- The Sun
All the one-off benefit payments due before the end of the year including families and people over State Pension age
MILLIONS receiving benefits are in line for one-off boosts to help ease the pain on budgets at certain pressure points over the coming months. As long as you are claiming qualifying benefits, you could receive several cash injections before the end of the year, 1 Here are all the one-off payments on the cards... Household Support Fund You can get help with the cost of living through the Household Support Fund. The pot is worth £421 million and distributed by local councils. Each authority has different qualifying criteria and gives support in different ways and for different amounts. It means that what you are able to apply for depends on where you live, as well as your financial situation. The money is usually given as cash transfer or through shopping or food vouchers. For example, in some parts of the country such as Portsmouth you can get as much as £1,000. Whereas households in other areas including Doncaster may be more likely to get up to £300 to support with gas, electricity and food costs. To find out, you'll need to look what your council offers and apply directly. DWP Christmas bonus Thousands of households on benefits receive a tax-free £10 cash boost from the Department for Work and Pensions (DWP). The tax-free £10 payment is paid to eligible households usually during the first full week of December. To qualify for the payment you must be present or "ordinarily resident" in the UK, Channel Islands, Isle of Man or Gibraltar. Households will also need to claim at least one of the 20 qualifying benefits within the same period. The bonus is for those who receive Universal Credit plus mone of the qualifying benefits. To claim your part of the Christmas cash, you'll need to be claiming at least one of the following DWP's benefits: Armed Forces Independence Payment Attendance Allowance Carer's Allowance Child Disability Payment Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes) Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim) Disability Living Allowance Incapacity Benefit at the long-term rate Industrial Death Benefit (for widows or widowers) Mobility Supplement Pension Credit - the guarantee element Personal Independence Payment (PIP) State Pension (including Graduated Retirement Benefit) Severe Disablement Allowance (transitionally protected) Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes) War Disablement Pension at State Pension age War Widow's Pension Widowed Mother's Allowance Widowed Parent's Allowance Widow's Pension If you're part of a married couple, in a civil partnership or live together, you'll both get the cash bonus - as long as you both are eligible. If you or your partner do not get one of the above qualifying benefits, then they could still get the bonus if they are over the state pension age by the end of the qualifying week. Winter Fuel payment The Winter Fuel Payment is made every year to help cover the cost of energy over the colder months. It has been changed in recent months so that fewer can claim. However, the cash boost, worth up to £300, is still valuable for those who quality - particularly those on Pension Credit. The cash is usually paid in November and December, with some made up until the end of January the following year. If you haven't got your payment by then, you need to call the office that pays your benefits. Households eligible for the payment are usually told via a letter sent in October or November each year. If you think you meet the criteria, but don't automatically get the winter fuel payment, you will have to apply on the government's website. The Child Winter Heating Assistance If you're based in Scotland, you could receive a child winter heating assistance payment of £255.80. You get child winter heating payment for a child or young person under 19 who lives in Scotland and who is entitled to: the highest rate of the care component of child disability payment (CDP) or disability living allowance (DLA), or the enhanced rate of the daily living component of adult disability payment (ADP) or personal independence payment (PIP). They must be entitled to the relevant disability benefit during the 'qualifying week', which is the week beginning on the third Monday in September (w/c Septmber 15 in 2025). You do not have to make a claim for the payment, but it should be paid by Social Security Scotland, usually in November. If you think you're entitled but have not received payment by the end of December, you should contact Social Security Scotland on 0800 182 2222. Warm Home Discount The Warm Home Discount is an automatic £150 discount off energy bills. As the money is a discount, there is no money paid to you, but you'll get the payment automatically if your electricity supplier is part of the scheme and you qualify. You'll have to be in receipt of one of the following benefits to qualify for one of the payments: Income support Income based jobseeker's allowance Income related employment and support allowance Housing benefit Universal credit Child tax credit Working tax credits Pension credit guaranteed Pension credit savings credit If you don't claim any of the above benefits, you won't be eligible for the payment. Cold Weather payment Cold weather payments are dished out when temperatures are recorded as, or forecast to be, zero degrees or below, on average, for seven consecutive days between November 1 and March 31. Eligible Brits are then given extra money to help heat their homes. You get £25 for each seven-day period where the weather is below zero Celsius on average during this time frame. You can check if your area has had a cold weather payment by popping your postcode into the government's tool on its website. You'll need to be on certain benefits to qualify, which are: Those in Scotland don't get cold weather payments but may be able to receive a winter heating payment instead. Student maintenance payments loans Student maintenance loans are paid to university students to help cover living costs such as rent. They are usually paid at the start of each new term, so you typically receive three payments a year. Maintenance Loans are paid straight into your student bank account in three (almost) equal instalments throughout the year. The amount you will receive depends on where in the UK you're from, whether you'll be living at home or not, your household income and how long you're studying for. The average Maintenance Loan is approximately £6,116 a year.
