Rolls-Royce Holdings Past Earnings Performance
Past criteria checks 4/6
Rolls-Royce Holdings has been growing earnings at an average annual rate of 55.8%, while the Aerospace & Defense industry saw earnings growing at 43.2% annually. Revenues have been growing at an average rate of 14.7% per year. Rolls-Royce Holdings's return on equity is 212%, and it has net margins of 27.5%.
Key information
55.84%
Earnings growth rate
57.64%
EPS growth rate
| Aerospace & Defense Industry Growth | 11.82% |
| Revenue growth rate | 14.70% |
| Return on equity | 211.99% |
| Net Margin | 27.54% |
| Next Earnings Update | 30 Jul 2026 |
Recent past performance updates
Recent updates
Narrative Update • Jun 09
RR.: Turnaround Execution And Buybacks Will Support Future Re Rating Potential
Rolls-Royce Holdings' analyst price target has been adjusted slightly to around £14.17 from £14.27, as analysts factor in recent target changes across the Street and continued momentum highlighted in new coverage. Analyst Commentary Bullish Takeaways Bullish analysts highlight what they see as continued momentum across Rolls-Royce's divisions, which they factor into higher valuation targets such as the 1,500 GBp level mentioned in recent coverage.
New Narrative • Jun 05
A company I wrote off that quietly turned itself around
A few years ago I thought Rolls-Royce was a mess. Today it's making real money again, paying down its problems, and handing cash back to shareholders.
Narrative Update • May 26
RR.: FY25 Beat And Buyback Programme Will Support Higher Future P E
Rolls-Royce Holdings' analyst price target has been maintained at £17.40, with analysts citing a mix of higher sector price targets from several banks and adjustments to growth, discount rate and margin assumptions. Analyst Commentary Recent research updates on Rolls-Royce show a cluster of bullish analysts lifting their price targets, which helps explain why the consensus target has held steady at £17.40 despite mixed adjustments elsewhere.Narrative Update • Apr 28
RR.: FY25 Beat And New Buyback Plan Will Underpin Higher P E Expectations
Analysts have reduced the average price target for Rolls-Royce Holdings by £0.50, reflecting slightly more cautious assumptions on growth and margins, even as recent research notes support from higher P/E expectations and a mix of both higher and lower broker targets. Analyst Commentary Recent research shows a split in opinion, with some bullish analysts lifting their price targets while others trim expectations, resulting in a more balanced but still supportive backdrop for valuation debates around Rolls-Royce Holdings.Narrative Update • Apr 14
RR.: Buyback Programme Will Support Future Re Rating Potential
The analyst fair value estimate for Rolls-Royce Holdings has been raised from £12.94 to £14.27, with analysts pointing to updated assumptions on revenue growth, profit margin potential and a lower future P/E, supported by a mix of higher price targets from JPMorgan, Berenberg, RBC Capital and Jefferies, partly offset by a recent reduction from UBS. Analyst Commentary Recent research updates on Rolls-Royce show a mix of optimism and caution, with several firms lifting price targets while one trims expectations.Narrative Update • Mar 30
RR.: FY25 Beat And New Buyback Plan Will Support Stronger Outlook
Narrative Update The updated analyst price target for Rolls-Royce Holdings reflects a shift in valuation inputs, with a slightly lower fair value estimate and P/E assumption, alongside higher projected revenue growth and profit margins. Analysts are responding to recent price target increases to £12.50 and £16.00 following the company's FY25 performance and 2026 guidance.Narrative Update • Mar 16
RR.: FY25 Beat And New Buyback Program Will Support Stronger Long Term Prospects
The analyst price target for Rolls-Royce Holdings is updated to a fair value of £17.70 from £16.25, based on Street research where analysts have raised targets to £12.50 and £16.00 following an FY25 beat and higher 2026 guidance. This also incorporates a slightly higher assumed discount rate, a higher revenue growth outlook, and a revised future P/E of 38.93x.Narrative Update • Mar 02
RR.: FY25 Beat And New Buyback Framework Will Support Stronger Long Term Prospects
Narrative Update The analyst price target for Rolls-Royce Holdings has been raised to £16.00 from £14.50, with analysts highlighting the recent FY25 beat and higher 2026 guidance as key factors behind the updated view. Analyst Commentary Bullish analysts are responding positively to the recent FY25 beat and higher 2026 guidance, and that is feeding into more constructive views on valuation and execution for Rolls-Royce Holdings.Narrative Update • Feb 16
RR.: Turnaround Progress And Quantum Advances Will Support Stronger Long Term Prospects
Analysts have lifted their price target on Rolls-Royce Holdings, with our fair value estimate moving from £15.68 to £16.25, citing updated assumptions around revenue growth, profit margins and future P/E multiples supported by recent positive research on Ultrafan and the wider turnaround story. Analyst Commentary Recent Street research has leaned constructive, with bullish analysts pointing to both the ongoing business turnaround and the potential of the Ultrafan program as key parts of the Rolls-Royce equity story.Narrative Update • Feb 02
RR.: Aerospace Demand And Buybacks Will Support Balanced Risk Reward Profile
Analysts have lifted their price target on Rolls-Royce Holdings from £11.98 to £12.94, citing updated assumptions for revenue growth, profit margins, discount rate and future P/E, along with supportive recent research that points to ongoing business improvements and product optionality. Analyst Commentary Bullish Takeaways Bullish analysts link the higher price targets, including the move to £12.94, to updated assumptions around revenue, margins and discount rates that they see as more aligned with the current business mix.
Narrative Update • Jan 19
RR.: Future Engine Ambitions Will Likely Magnify Execution Risk Ahead
Analysts have trimmed their average fair value estimate for Rolls-Royce Holdings to £8.36 from £8.64, pointing to updated assumptions on discount rate, revenue growth, profit margins and future P/E, following recent research that highlights the company’s operational turnaround and potential upside from its next generation Ultrafan program. Analyst Commentary Recent research points to a mixed tone on Rolls-Royce, with some analysts highlighting the operational turnaround and potential upside linked to the Ultrafan program, while others flag valuation and execution risks that could limit near term upside.Narrative Update • Jan 05
RR.: Turnaround Progress And Quantum Breakthroughs Will Support Stronger Long Term Prospects
Analysts have raised their fair value estimate for Rolls-Royce Holdings from £14.40 to about £15.68 per share, citing updated views on revenue growth, profit margins and future P/E, along with research that highlights the company’s recent operational progress and potential upside from its next generation Ultrafan engine program. Analyst Commentary Recent Street research reflects a more constructive tone on Rolls-Royce, with bullish analysts pointing to both operational progress and potential upside from future programs as key supports for higher fair value estimates.Narrative Update • Dec 16
RR.: Future Engine Ambitions Will Likely Expose Downside Risk Ahead
Analysts have raised their price target for Rolls-Royce Holdings to approximately £12.90 from around £5.80. This reflects greater confidence in the company’s margin expansion, higher long term revenue growth, and upside from next generation engine programs.Narrative Update • Dec 02
RR.: Shares Will Gain Momentum From Aerospace Demand And Potential New Engine Deal
The analyst price target for Rolls-Royce Holdings has been revised upward from £11.93 to approximately £11.98. This change reflects analysts' increased confidence in the company's turnaround progress and opportunities for growth in the aerospace sector.Analysis Article • Nov 24
Rolls-Royce Holdings plc's (LON:RR.) Price Is Out Of Tune With Earnings
There wouldn't be many who think Rolls-Royce Holdings plc's ( LON:RR. ) price-to-earnings (or "P/E") ratio of 15x is...Narrative Update • Nov 18
RR.: Shares Will Face Opportunities And Delays Amid Industry Recovery And New Engine Talks
Analysts have raised their fair value estimate for Rolls-Royce Holdings slightly to £11.93 per share. They cite improved long-term profit margins and ongoing operational turnaround as key factors supporting the higher price target.Narrative Update • Nov 04
RR.: European Aerospace Demand And Engine Opportunities Will Balance Near-Term Execution Risks
Analysts have recently lifted their price targets for Rolls-Royce Holdings, with expectations rising from £10.40 to £12.45 and as high as £12.90 per share. This reflects increased confidence in the company's ability to deliver capital returns amid strong European aerospace market demand and an improving aftermarket outlook.Narrative Update • Oct 21
Analysts Lift Rolls-Royce Targets Amid Stronger Outlook and Improved Fundamentals
Analysts have raised their price target for Rolls-Royce Holdings from £11.36 to £11.93. They cite strengthening fundamentals and improved industry outlooks as key drivers for this positive revision.Analysis Article • Sep 29
Is There Now An Opportunity In Rolls-Royce Holdings plc (LON:RR.)?
Let's talk about the popular Rolls-Royce Holdings plc ( LON:RR. ). The company's shares saw a significant share price...Analysis Article • Sep 07
Is Rolls-Royce Holdings (LON:RR.) A Risky Investment?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...Narrative Update • Aug 30
Rising Supply Chain Risks And Slowing Demand Will Undercut Margins
Analysts have raised their price target for Rolls-Royce Holdings to £11.19, citing improved fundamentals, robust aerospace demand, stronger cash flow, and enhanced profitability, though some caution about valuation after recent gains. Analyst Commentary Bullish analysts have increased price targets based on improving company fundamentals and sustained earnings momentum.Analysis Article • Aug 06
Rolls-Royce Holdings' (LON:RR.) Returns On Capital Are Heading Higher
LSE:RR. 1 Year Share Price vs Fair Value Explore Rolls-Royce Holdings's Fair Values from the Community and select yours...Narrative Update • Aug 06
Rising Supply Chain Risks And Slowing Demand Will Undercut Margins
Analysts have raised their price target for Rolls-Royce Holdings to £9.97, citing stronger cash flow forecasts, sustained operational improvements, and a more optimistic long-term aerospace outlook. Analyst Commentary Valuation concerns leading to a more cautious outlook after strong share price appreciation.Analysis Article • Jul 22
Some Confidence Is Lacking In Rolls-Royce Holdings plc's (LON:RR.) P/E
When close to half the companies in the United Kingdom have price-to-earnings ratios (or "P/E's") below 16x, you may...Analysis Article • Jul 06
Does Rolls-Royce Holdings (LON:RR.) Deserve A Spot On Your Watchlist?
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...
New Narrative • Mar 02
Regulatory Delays In SMR Projects Will Escalate Costs And Reduce Returns
Rolls-Royce's revenue projections may be overly optimistic, relying heavily on LTSA growth, engine performance, and contract renegotiations amidst competitive challenges.Revenue & Expenses Breakdown
Revenue & Expenses Breakdown
How Rolls-Royce Holdings makes and spends money. Based on latest reported earnings, on an LTM basis.
Earnings and Revenue History
| Date | Revenue | Earnings | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 31 Dec 25 | 21,207 | 5,841 | 1,221 | 501 |
| 30 Sep 25 | 20,373 | 5,815 | 1,212 | 522 |
| 30 Jun 25 | 19,538 | 5,788 | 1,202 | 542 |
| 31 Mar 25 | 19,224 | 4,155 | 1,209 | 571 |
| 31 Dec 24 | 18,909 | 2,521 | 1,216 | 599 |
| 30 Sep 24 | 18,367 | 2,427 | 1,184 | 631 |
| 30 Jun 24 | 17,824 | 2,332 | 1,151 | 662 |
| 31 Mar 24 | 17,155 | 2,372 | 1,113 | 701 |
| 31 Dec 23 | 16,486 | 2,412 | 1,075 | 739 |
| 30 Sep 23 | 15,965 | 2,031 | 1,085 | 823 |
| 30 Jun 23 | 15,443 | 1,650 | 1,095 | 907 |
| 31 Mar 23 | 14,482 | 231 | 1,068 | 899 |
| 31 Dec 22 | 13,520 | -1,189 | 1,040 | 891 |
| 30 Sep 22 | 12,590 | -1,535 | 1,009 | 826 |
| 30 Jun 22 | 11,659 | -1,881 | 978 | 761 |
| 31 Mar 22 | 11,439 | -879 | 936 | 770 |
| 31 Dec 21 | 11,218 | 123 | 893 | 778 |
| 30 Sep 21 | 11,098 | 1,339 | 835 | 607 |
| 30 Jun 21 | 10,977 | 2,555 | 777 | 435 |
| 31 Mar 21 | 11,234 | -273 | 775 | 579 |
| 31 Dec 20 | 11,491 | -3,102 | 772 | 723 |
| 30 Sep 20 | 12,934 | -4,385 | 848 | 911 |
| 30 Jun 20 | 14,377 | -5,669 | 923 | 1,099 |
| 31 Mar 20 | 15,482 | -3,492 | 1,014 | 935 |
| 31 Dec 19 | 16,587 | -1,315 | 1,105 | 770 |
| 30 Sep 19 | 16,356 | -1,835 | 1,285 | 764 |
| 30 Jun 19 | 16,125 | -2,356 | 1,464 | 757 |
| 31 Mar 19 | 15,927 | -2,378 | 1,518 | 763 |
| 31 Dec 18 | 15,729 | -2,401 | 1,572 | 768 |
| 30 Sep 18 | 15,654 | -572 | 1,440 | 757 |
| 30 Jun 18 | 15,578 | 1,256 | 1,307 | 746 |
| 31 Mar 18 | 15,163 | 2,319 | 1,212 | 795 |
| 31 Dec 17 | 14,747 | 3,382 | 1,117 | 843 |
| 30 Sep 17 | 14,948 | 1,147 | 1,401 | 910 |
| 30 Jun 17 | 15,149 | -1,088 | 1,685 | 976 |
| 31 Mar 17 | 15,052 | -2,560 | 1,725 | 950 |
| 31 Dec 16 | 14,955 | -4,032 | 1,765 | 923 |
| 30 Sep 16 | 14,386 | -3,040 | 1,448 | 871 |
| 30 Jun 16 | 13,817 | -2,049 | 1,131 | 818 |
| 31 Mar 16 | 13,771 | -983 | 1,085 | 818 |
| 31 Dec 15 | 13,725 | 83 | 1,038 | 818 |
| 30 Sep 15 | 13,791 | -85 | 1,065 | 823 |
| 30 Jun 15 | 13,857 | -253 | 1,091 | 828 |
Quality Earnings: RR. has a large one-off gain of £2.4B impacting its last 12 months of financial results to 31st December, 2025.
Growing Profit Margin: RR.'s current net profit margins (27.5%) are higher than last year (13.3%).
Free Cash Flow vs Earnings Analysis
Past Earnings Growth Analysis
Earnings Trend: RR. has become profitable over the past 5 years, growing earnings by 55.8% per year.
Accelerating Growth: RR.'s earnings growth over the past year (131.7%) exceeds its 5-year average (55.8% per year).
Earnings vs Industry: RR. earnings growth over the past year (131.7%) exceeded the Aerospace & Defense industry 11.8%.
Return on Equity
High ROE: Whilst RR.'s Return on Equity (211.99%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/06/14 04:10 |
| End of Day Share Price | 2026/06/12 00:00 |
| Earnings | 2025/12/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Rolls-Royce Holdings plc is covered by 34 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| George Mcwhirter | Berenberg |
| Douglas Harned | Bernstein |
| Adrien Rabier | Bernstein |