Rolls-Royce (RRU1) Stock Price & Analysis
RRU1 Stock Chart & Stats
- Day’s Range
- EUR 14.90 - EUR 15.10
- 52-Week Range
- EUR 11.40 - EUR 18.50
- Previous Close
- EUR 15.20
- Volume
- 10
- Average Volume (3M)
- 1,082
- Market Cap
- EUR 122.53B
- Enterprise Value
- EUR 157.34B
- Total Cash (Recent Filing)
- EUR 6.50B
- Total Debt (Recent Filing)
- EUR 4.37B
- Price to Earnings (P/E)
- 34.4
- Beta
- 1.44
- Next Earnings
- Feb 25, 2027 (Est.)
- EPS Estimate
- 0.25
- Next Dividend Ex-Date
- N/A
- Dividend Yield
- 0.86%
Bulls Say, Bears Say
Bulls Say
Revenue Expansion
The substantial increase in revenue demonstrates a stronger earnings base and broader commercial scale over several years. Continued expansion can support investment in technology, production and customer support while reinforcing Rolls-Royce’s position across aerospace, defense and power systems markets.
Improving Cash Generation
Strong and improving operating and free cash flow provide internal funding for investment, debt reduction and customer support. Free cash flow also tracked earnings reasonably well in 2025, indicating that the reported recovery was supported by cash conversion rather than accounting profit alone.
Recurring Aftermarket Revenue
The installed-engine fleet and long-term service arrangements create an economically durable revenue stream beyond initial engine sales. Usage-linked maintenance, parts and support can deepen customer relationships, smooth revenue across cycles and provide attractive aftermarket economics as fleets remain in service.
Bears Say
Meaningful Leverage
Although equity returned to positive territory, leverage remains substantial relative to the capital base. This can constrain financial flexibility, increase sensitivity to earnings setbacks and leave less internally generated cash available for investment or shareholder distributions if conditions weaken.
Cyclical Cash Flow
The history of negative cash flow shows that cash generation can weaken materially during adverse operating conditions. Even after the recovery, the relationship between cash flow and revenue indicates exposure to aerospace cycles, utilization changes and working-capital demands over the medium term.
Profitability Sensitivity
The sharp margin improvement strengthens current earnings power but also creates a demanding base for future performance. If aerospace cycles, pricing or program mix become less favorable, margins could normalize, reducing earnings growth and weakening the cash available to address leverage.
Rolls-Royce News
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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.
- Sector
- Industrials
- Industry
- Aerospace & Defense
- CEO
- Tufan Erginbilgic
- Employees
- 43,162
- Website
- www.rolls-royce.com
- Address
- Kings Place, 90 York Way, London, GL, N1 9FX, GB
Rolls-Royce (RRU1) Earnings & Revenues
RRU1 Company Deck
RRU1 Earnings Call
Earnings Call SentimentPositive
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 summariesTechnical Analysis
Overall Consensus
| Indicator | Bullish | Neutral | Bearish |
|---|---|---|---|
| Overall Consensus | 3 | 6 | 13 |
| Technical Analysis | 2 | 6 | 2 |
| Moving Averages | 1 | 0 | 11 |