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Rolls-Royce (DE:RRU1)
FRANKFURT:RRU1

Rolls-Royce (RRU1) Price & Analysis

16 Followers

RRU1 Stock Chart & Stats

€17.90
€0.40(2.50%)
At close: 4:00 PM EDT
€17.90
€0.40(2.50%)

Bulls Say, Bears Say

Bulls Say
Revenue Scale And GrowthThe substantial increase in revenue since 2020 indicates a stronger operating scale and broad recovery across Rolls-Royce’s activities. A larger revenue base can support investment, improve absorption of fixed costs, and reinforce the company’s ability to serve major aerospace and defense customers over multiple years.
Recurring Aftermarket RevenueThe installed engine fleet and long-term service arrangements provide an enduring source of aftermarket demand beyond initial engine deliveries. Usage-linked maintenance, repairs, parts, and support can improve revenue visibility, deepen customer relationships, and make the business model more resilient across equipment cycles.
Improving Cash GenerationStrong and improving operating and free cash flow indicates that the recent earnings recovery is translating into financial resources. Cash generation can fund investment, support debt reduction, and provide flexibility for long-term service capabilities while reducing reliance on external financing.
Bears Say
Meaningful LeverageAlthough positive equity represents a material improvement, debt remains high relative to the equity base. This leverage can constrain capital allocation, increase sensitivity to weaker earnings or working-capital needs, and make the balance sheet less flexible during an aerospace or defense downturn.
Cash Flow CyclicalityThe history of negative cash flow shows that strong recent generation may not be fully insulated from business cycles. If demand, engine utilization, or working-capital requirements weaken, cash conversion could deteriorate and reduce the funds available for investment, deleveraging, and shareholder returns.
Profitability SustainabilityThe sharp profitability rebound is a clear strength, but its exceptional level compared with prior years creates a sustainability risk. Changes in aerospace cycles, pricing, or program mix could reduce margins, weakening earnings support for debt management and making future results less predictable.

Rolls-Royce News

RRU1 FAQ

What was Rolls-Royce’s price range in the past 12 months?
Rolls-Royce lowest stock price was €11.40 and its highest was €18.50 in the past 12 months.
    What is Rolls-Royce’s market cap?
    Rolls-Royce’s market cap is €122.53B.
      When is Rolls-Royce’s upcoming earnings report date?
      Rolls-Royce’s upcoming earnings report date is Feb 25, 2027 which is in 117 days.
        How were Rolls-Royce’s earnings last quarter?
        Rolls-Royce released its earnings results on Jul 30, 2026. The company reported €0.265 earnings per share for the quarter, beating the consensus estimate of €0.212 by €0.053.
          Is Rolls-Royce overvalued?
          According to Wall Street analysts Rolls-Royce’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Rolls-Royce pay dividends?
            Rolls-Royce does not currently pay dividends.
            What is Rolls-Royce’s EPS estimate?
            Rolls-Royce’s EPS estimate is 0.25.
              How many shares outstanding does Rolls-Royce have?
              Rolls-Royce has 8,269,203,000 shares outstanding.
                What happened to Rolls-Royce’s price movement after its last earnings report?
                Rolls-Royce reported an EPS of €0.265 in its last earnings report, beating expectations of €0.212. Following the earnings report the stock price went up 3.683%.
                  Which hedge fund is a major shareholder of Rolls-Royce?
                  Currently, no hedge funds are holding shares in DE:RRU1
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Rolls-Royce Stock Smart Score

                    7
                    Neutral
                    1
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                    7
                    8
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                    10

                    Technicals

                    SMA
                    Negative
                    20 days / 200 days
                    Momentum
                    9.00%
                    12-Months-Change

                    Fundamentals

                    Return on Equity
                    108.91%
                    Trailing 12-Months
                    Asset Growth
                    -0.42%
                    Trailing 12-Months
                    Learn more about TipRanks Smart Score

                    Company Description

                    Rolls-Royce

                    Rolls-Royce Holdings plc operates as a prominent global industrial technology corporation, headquartered in London, United Kingdom, since its founding in 1884. The company's diverse activities are organized into four key divisions: Civil Aerospace, Power Systems, Defence, and New Markets. Its Civil Aerospace unit is dedicated to designing, manufacturing, and marketing aircraft engines for major commercial airlines, regional jets, and business aviation, alongside providing comprehensive after-sale support. The Power Systems segment concentrates on developing, producing, promoting, and selling integrated power and propulsion systems for various applications, including marine, defense, electricity generation, and industrial sectors. For military applications, the Defence segment supplies aero engines for transport and patrol aircraft, in addition to naval propulsion units and nuclear power plants for submarines, complete with associated maintenance services. Finally, the New Markets segment is focused on the creation, production, and distribution of small modular reactors (SMRs) and advanced electrical power solutions. Rolls-Royce also delivers extensive maintenance, repair, and overhaul (MRO) services throughout its product portfolio.

                    Rolls-Royce (RRU1) Earnings & Revenues

                    RRU1 Company Deck

                    RRU1 Earnings Call

                    Q2 2026
                    0:00 / 0:00
                    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.View all DE:RRU1 earnings summaries
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