Rolls-Royce Half-Year Profit Rises 46% as Defense Margin Jumps and SMR Wins Europe

Rolls-Royce reported first-half underlying operating profit of £2.53 billion (about $3.38 billion) on Thursday, up 46% year-on-year and ahead of analysts’ roughly £2.37 billion consensus. The defense segment was the standout, with its underlying operating margin rising to 21.0% from 15.4%. Overall, revenue climbed 26% to £11.28 billion and underlying operating margin expanded to 22.5% from 19.1%. Free cash flow reached £1.96 billion, up from £1.58 billion in H1 2025, while net cash rose to £2.14 billion. The company raised full-year operating profit guidance to £4.7–£4.9 billion.