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Rolls-Royce (DE:RRU1)
FRANKFURT:RRU1

Rolls-Royce (RRU1) Price & Analysis

16 Followers

RRU1 Stock Chart & Stats

€16.40
€0.40(2.50%)
At close: 4:00 PM EDT
€16.40
€0.40(2.50%)

Bulls Say, Bears Say

Bulls Say
Improving Cash GenerationRolls‑Royce has materially strengthened cash generation: operating cash flow and free cash flow rose substantially by 2025. Durable FCF supports higher investments, multiyear buybacks and dividend policy, improving financial flexibility and resilience across aerospace cycles without relying on one‑off accounting gains.
LTSA And Aftermarket Margin ExpansionManagement forecasts large structural LTSA and contract margin improvement, boosting recurring, usage‑linked service revenue. Higher LTSA margins increase predictable long‑term cash flows, reduce reliance on volatile OEM sales, and strengthen earnings durability across the midterm and beyond.
Diversified Segment Momentum And BacklogStrong defence order intake and a GBP 17.4bn backlog provide multi‑year revenue visibility and offset civil cyclicality. Alongside Power Systems growth, this multi‑segment mix reduces single‑market exposure, supports through‑cycle cash and creates stable after‑sales demand across commercial, defence and power markets.
Bears Say
Meaningful Leverage RemainsAlthough equity returned to positive territory, debt levels and a roughly 2x debt/equity ratio leave the capital structure exposed. Persistent leverage constrains flexibility for adverse cycles, raises refinancing and covenant risk, and limits the net benefit of rising cash flows if earnings weaken.
Ongoing Supply‑chain And Product Cost InflationContinuing supply‑chain bottlenecks and input cost inflation create a durable headwind to margins and working capital into 2026. The expected cash drag and elevated shop‑visit timing add variability to free cash flow, making margin and cash targets more execution‑sensitive over the midterm.
Narrow‑body Re‑entry Execution RiskRe‑entering narrow‑body engines requires external partnerships and industrial scale. Absent government loans and facing competitors with significant support, execution depends on securing collaborators and material commitments; failure or delays would reduce expected long‑term growth potential and raise R&D payback risk.

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 €17.80 in the past 12 months.
    What is Rolls-Royce’s market cap?
    Rolls-Royce’s market cap is €142.95B.
      When is Rolls-Royce’s upcoming earnings report date?
      Rolls-Royce’s upcoming earnings report date is Feb 25, 2027 which is in 207 days.
        How were Rolls-Royce’s earnings last quarter?
        Rolls-Royce released its earnings results on Jul 30, 2026. The company reported €0.257 earnings per share for the quarter, beating the consensus estimate of €0.206 by €0.051.
          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 8,333,400,000 shares outstanding.
                What happened to Rolls-Royce’s price movement after its last earnings report?
                Rolls-Royce reported an EPS of €0.257 in its last earnings report, beating expectations of €0.206. Following the earnings report the stock price went up 3.681%.
                  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

                    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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