olivLaw · European equity research
Rolls-Royce plc RR.L
United Kingdom · London Stock Exchange · Vertical: Listed companies from United Kingdom
Rolls-Royce plc is a UK maker of engines and systems for civil aviation, defence and power generation, with solid liquidity at the end of 2025 that supports its funding plans through June 2027. The company has a broad base of customers and employees, and its energy transition and supply chain pressures make its direction worth watching closely.
At the close of 05 Nov 2026, Rolls-Royce plc (RR.L) stock was 12.40 GBP (−1.84% on the day), with beta 1.33, 52-week range 10.29–15.70 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 38.0
- weak (30–45)
- Bollinger (20, 2)
- 11.76 – 14.14
- in the lower half of the band · %B 0.27 · band width 18.4%
- SMA 50 / 200
- 13.98 / 13.36
- mixed trend
- MACD (12, 26, 9)
- -0.46 / -0.48
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −13.8% | −0.6% | −13.2 pp | — |
| 3 months | −19.2% | −4.2% | −15.0 pp | — |
| 6 months | −3.1% | +4.3% | −7.5 pp | — |
| Year to date | +7.8% | +7.5% | +0.3 pp | — |
| 1 year | +7.1% | +9.9% | −2.8 pp | +5.8% |
| 3 years | +453.1% | +49.8% | +403.3 pp | +26.3% |
| 5 years | +767.2% | +42.8% | +724.4 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
EPS unavailable in the issuer's structured filings (e.g. a partnership reports per unit, not per share).
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 16.5 bn | 18.9 bn | 21.2 bn |
| Revenue YoY | unavailable | +14.7% | +12.2% |
| Net income | 2.4 bn | 2.5 bn | 5.8 bn |
| Net income YoY | unavailable | +4.5% | +131.7% |
| Diluted EPS | unavailable | unavailable | unavailable |
| Diluted EPS YoY | unavailable | unavailable | unavailable |
| net % | 14.6% | 13.3% | 27.5% |
| Free cash flow | 2.1 bn | 3.3 bn | 3.9 bn |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 5.7 bn GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 5.0 bn GBP
- Total assets
- 40.3 bn GBP
- Debt / equity
- unavailable
- Current ratio
- 1.32x
- ROE
- unavailable
- ROA
- 15.3%
- FCF margin
- 18.6%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 16.5 bn | 18.9 bn | 21.2 bn | esef· 10 Mar 2026verified |
| Cost of revenue | 12.9 bn | 14.7 bn | 15.0 bn | esef· 10 Mar 2026verified |
| Gross profit | 3.6 bn | 4.2 bn | 6.2 bn | esef· 10 Mar 2026verified |
| Research & development | 739.0 m | 203.0 m | 495.0 m | esef· 10 Mar 2026verified |
| Operating income | 1.9 bn | 2.9 bn | 4.5 bn | esef· 10 Mar 2026verified |
| Interest expense | 681.0 m | 1.2 bn | 479.0 m | esef· 10 Mar 2026verified |
| Pre-tax income | 2.4 bn | 2.2 bn | 6.9 bn | esef· 10 Mar 2026verified |
| Income tax | 23.0 m | -250.0 m | 1.1 bn | esef· 10 Mar 2026verified |
| Net income | 2.4 bn | 2.5 bn | 5.8 bn | esef· 10 Mar 2026verified |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 3.8 bn | 5.6 bn | 5.7 bn | esef· 10 Mar 2026verified |
| Receivables | 8.5 bn | 9.1 bn | 8.6 bn | esef· 10 Mar 2026verified |
| Inventories | 4.8 bn | 5.1 bn | 2.8 bn | esef· 10 Mar 2026verified |
| Current assets | 18.4 bn | 21.8 bn | 18.6 bn | esef· 10 Mar 2026verified |
| Property, plant & equipment, net | 3.7 bn | 3.7 bn | 2.2 bn | esef· 10 Mar 2026verified |
| Goodwill | — | 1.0 bn | 3.0 m | esef· 10 Mar 2026verified |
| Intangibles (excl. goodwill) | — | 3.4 bn | 2.3 bn | esef· 10 Mar 2026verified |
| Total assets | 31.8 bn | 36.0 bn | 40.3 bn | esef· 10 Mar 2026verified |
| Accounts payable | 6.9 bn | 8.0 bn | 6.7 bn | esef· 10 Mar 2026verified |
| Current liabilities | 14.9 bn | 16.7 bn | 14.1 bn | esef· 10 Mar 2026verified |
| Total liabilities | 35.1 bn | 36.5 bn | 35.3 bn | esef· 10 Mar 2026verified |
| Equity | -3.3 bn | -521.0 m | 5.0 bn | esef· 10 Mar 2026verified |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 2.5 bn | 3.8 bn | 4.6 bn | esef· 10 Mar 2026verified |
| Capex | 429.0 m | 519.0 m | 621.0 m | esef· 10 Mar 2026verified |
| Free cash flow | 2.1 bn ≈ | 3.3 bn ≈ | 3.9 bn ≈ | esef· 10 Mar 2026derived |
| Investing cash flow | -726.0 m | -831.0 m | -2.8 bn | esef· 10 Mar 2026verified |
| Financing cash flow | -550.0 m | -1.0 bn | -1.1 bn | esef· 10 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 4 of at least 6
- score weight coverage: 22.9% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
23% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 22.9% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 27.5% | 80 (vs peers) | 27% |
| FCF conversion · Quality | 67.5% | 54 (on a fixed band) | 27% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 9.3x | 100 (on a fixed band) | 27% |
| Current ratio · Balance sheet | 1.3x | 43 (on a fixed band) | 18% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet77/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality67/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
ROLLS-ROYCE PLC (RR.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 21.2 bn GBP in 2025; YoY growth 12.2%; net margin 27.5%; ROE 265.6%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 22.9% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 27.5%
- Interest coverage: 9.3x
What contradicts it
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
Not assessed (insufficient data or a ratio without meaning): ROIC, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
| AEP.LAnglo-Eastern Plantations PLC | — | — | 16.1% | 19.5% | +25.0% | +5% / +113% |
1- and 3-year price returns: for RR.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Rolls-Royce plc is a UK maker of engines and systems for civil aviation, defence and power generation, with solid liquidity at the end of 2025 that supports its funding plans through June 2027. The company has a broad base of customers and employees, and its energy transition and supply chain pressures make its direction worth watching closely.
SWOT
Strengths
- Solid liquidity with cash and undrawn facilities available well into the future, according to the report 1.
- Strong position in civil aviation and defence programmes, with long-standing relationships with customers and governments 1.
- Large specialised workforce with a strong focus on product safety and quality controls 1.
Weaknesses
Opportunities
Risks
- Business interruptionhigh
An extreme event, a failure at a critical supplier or a pandemic could affect deliveries and customer relationships; the probability of this risk rose in 2025 1.
- Compliance and regulationhigh
Breaches of export control, anti-bribery or data privacy rules could lead to penalties and loss of access to government contracts 1.
- Delivery against financial plansmedium
If programmes are not delivered to plan or fall short of customer expectations, financial results could be affected 1.
- Product and workplace safetymedium
Safety issues in products or at work could damage reputation and long-term sustainability, although controls were strengthened in 2025 1.
- Energy transitionlow
Slower progress towards net zero could reduce the ability to win new business and attract funding 1.
Investment thesis
What would need to be true (bull case)
- Liquidity and credit facilities available well into the future give the company a stable base for investment 1.
- If the return to narrowbody and growth in power and defence materialise, revenue could diversify 1.
- Relationships with customers and governments and deep technical expertise could support long-term contracts 1.
What would break the thesis
What to watch
- Liquidity trends and refinancing of the 2026 bond maturities2026
- Flying hours of large civil engines2026
- Delivery results of defence and civil nuclear programmes2027
- Going concern horizon and plans beyond June 2027June 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
According to the 2025 annual report, Rolls-Royce plc is a UK company that develops and produces engines and propulsion technologies for civil and military aircraft. It is part of a larger group, Rolls-Royce Holdings plc, and its annual report is published together with the group report. The strategy described in the document emphasises growth in the defence offer, civil nuclear energy and power solutions, including for data centres 1.
At 31 December 2025 the group had liquidity of 8.2 billion pounds sterling, of which 5.7 billion pounds was cash and cash equivalents, with the rest from undrawn facilities 1. A 2.5 billion pound revolving credit facility was extended to December 2030, and the going concern assessment runs to June 2027 1. The company repaid a 750 million euro bond in February 2026 and is due to pay a 375 million pound bond in June 2026, both assumed to be paid from cash if not refinanced 1.
The workforce is over 42,000 colleagues worldwide, and the company supports local communities through technical education and volunteering programmes 1. Relationships with customers, suppliers and governments are described as critical to long-term success, especially in defence programmes and civil engine development 1.
Segments
Civil Aerospace
The report covers development of engines for civil aircraft and the base case assumption for large engine flying hours, which directly drives service and maintenance revenue 1. Management discussed with customers a possible return to the narrowbody segment and time on wing for engines 1.
Market context
The report describes a volatile external environment with geopolitical tensions, tariff uncertainty and supply chain pressures 1. The base case for 2026 to 2027 includes general inflation of around 2%-3%, average wage growth of 3%-4% and interest rates of around 2%-4% 1.
The downside scenario assumes large engine flying hours stay at fourth quarter 2025 averages and that inflation and interest rates are higher than in the base case 1. The directors consider that, even then, the group has sufficient liquidity to operate through June 2027 1.
Trends
- Return to the narrowbody markettailwind
Management has discussed with customers an opportunity to re-enter the narrowbody segment, which could bring new engine orders if the strategy is realised 1.
- Growing demand for power and data centrestailwind
The company presents its power generation solutions for fast-growing markets including data centres, which could complement aviation revenue if demand continues 1.
- Inflation and cost pressuresheadwind
The downside scenario includes higher product, energy, commodity and jet fuel costs, which could compress margins if they cannot be passed on to customers 1.
- Energy transitionmixed
The report shows that lower-carbon technologies can open opportunities but require long investment and may change demand for current products 1.
Competitive position
The report does not name direct competitors, but it discusses benchmarking performance against industry rivals and the risk of falling behind if strategy does not evolve fast enough 1. In aero engine and defence markets, competition is described as complex and intense 1.
The company aims to maintain its edge through investment in capacity, innovation and partnerships, but its relative position depends on delivering large programmes and meeting customer timelines 1.
- US civil aero engine manufacturers
The report does not name competitors; US manufacturers active in the civil aircraft engine market are the general reference point.
- European aerospace engine and systems makers
European competition is mentioned generically in the context of defence programmes and cooperation with member states.
- Defence systems suppliers
The report refers to competition in defence programmes without naming specific firms.
- Data centre power solution providers
The data centre power direction competes with other providers of power generation solutions.
News & filings
In the press
- Amazon rolls out text-based shopping through AlexaCNA (Channel NewsAsia) · 06 Nov 2026 · EN
- Anthropic rolls out personal finance feature for ClaudeCNA (Channel NewsAsia) · 05 Nov 2026 · EN
- Un Citroen rar care a aparținut unui inginer britanic din proiectul Thrust 2 a fost găsit într-un garaj după 38 de aniLibertatea.ro · 05 Nov 2026 · RO
- Full-Life Engine Prices Nearly Doubled To $13 Million But Are Keeping Old Freighters In The AirSimple Flying · 05 Nov 2026 · EN
- Vercel rolls out new protection against stolen session cookie attacksBleepingComputer · 04 Nov 2026 · EN
- EU Fast Track to Unicorn Status Thru Little-known State AidBudapest Business Journal (HU, EN) · 04 Nov 2026 · EN
- Chrome 157 Rolls Out With 213 Security Fixes, Seven Rated CriticalSecurityWeek · 04 Nov 2026 · EN
- Tencent rolls out AI model trained with limited cybersecurity data amid hacking fearsCNA (Channel NewsAsia) · 04 Nov 2026 · EN
- Give us all a share of Rolls-Royce’s profits | Brief lettersThe Guardian — Health · 03 Nov 2026 · EN
- Rolls-Royce vrea să revină pe piaţa motoarelor pentru avioane de tip Airbus A320 şi Boeing 737, cu un program nou de inginerie de 2,5 miliarde de lire - PiataAuto.mdSurge — Google News · 03 Nov 2026 · RO
- China rolls out support measures to aid struggling stocksCNA (Channel NewsAsia) · 03 Nov 2026 · EN
- DOJ calls for sanctions over California voter rolls analysisThe Hill · 02 Nov 2026 · EN
- Most Versatile? Why Boeing Made The Iconic 747-400 Compatible With 3 Distinct PowerplantsSimple Flying · 02 Nov 2026 · EN
- From Exam Halls to Electoral Rolls: What the UN’s Rebuke of India’s Protest Crackdown Really RevealsModern Diplomacy · 02 Nov 2026 · EN
- A tiny Pacific country rolls out universal basic incomeHacker News · 01 Nov 2026 · EN
- DOJ subpoenas California officials in voter rolls investigation escalationThe Hill · 30 Oct 2026 · EN
- Ion Țiriac, deposedat de o „bijuterie” inestimabilă. A fost vândută pe două reviste: „Ești un imbecil” - ProsportSurge — Google News · 30 Oct 2026 · RO
- Girding up the Grid – The Latest Issue of the BBJBudapest Business Journal (HU, EN) · 30 Oct 2026 · EN
- We're raising our price target on Eli Lilly as the obesity-drug boom rolls onCNBC — Top News · 29 Oct 2026 · EN
- MBDA Stratus weapon family nears demonstration and manufacturing phases contractEuropean Defence Review · 29 Oct 2026 · RO
Annual reports (ESEF)
- Annual report 202510 Mar 2026
- Annual report 202418 Mar 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Rolls-Royce plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.