First-half revenue came in at £11.3bn (£10.3bn expected), up 26% on an organic basis, driven by strong growth across Civil Aerospace, Defence and Power Systems.
Underlying operating profit soared by 46% to £2.5bn (£1.9bn expected), with the beat driven by better-than-expected top-line growth and improved margins across all three businesses divisions.
Free cash flow rose by 24% to £2.0bn (£1.2bn expected). The net cash position improved from £1.9bn to £2.1bn.
Full-year guidance has been raised, with underlying operating profit now expected to land between £4.7-4.9bn (previously: £4.0-4.2bn). Free cash flow is now expected to be between £3.8-4.0bn (previously: £3.6-3.8bn).
An interim dividend of 6.0p per share was announced, up 33%. To date, £1.4bn of the three-year £7-9bn share buyback programme has been completed.
The shares rose 3.4% in early trading.
Our view
HL view to follow.
Rolls-Royce key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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