(RTTNews) - Rolls-Royce Holdings PLC (RYCEY.PK, RR.L, RYCEF.PK, RRU.DE), a British aerospace and defense company, reported Thursday sharp drop in first-half profit, despite strong growth in revenues. Further, the company raised fiscal 2026 outlook.
In London, the shares were gaining around 4.2 percent, trading at 1,437.40 pence.
Tufan Erginbilgic, CEO said, "A strong start to the year enables us to raise our guidance for 2026 despite the conflict in the Middle East. … This builds further confidence in our mid-term targets. The actions that we have taken and investments we have made will drive significant profitable growth to the mid-term and beyond."
Looking ahead for fiscal 2026, the company now expects underlying operating profit of 4.7 billion pounds to 4.9 billion pounds, higher than previous estimate of 4 billion pounds to 4.2 billion pounds.
In the first half, profit before taxation fell to 1.93 billion pounds from last year's 4.84 billion pounds. Earnings per share declined to 19.28 pence from 52.15 pence a year ago.
Underlying profit before taxation was 2.50 billion pounds, compared to 1.69 billion pounds last year. Underlying basic earnings per share were 22.17 pence, compared to 15.74 pence a year earlier.
Underlying Operating profit grew to 2.53 billion pounds from 1.73 billion pounds in the prior year. Underlying operating margin improved to 22.5 percent from last year's 19.1 percent.
Revenue for the first half climbed to 11.45 billion pounds from 9.49 billion pounds a year ago. Underlying revenue was 11.28 billion pounds, compared to 9.06 billion pounds last year.
Further, the Board announced an interim cash dividend in respect of the first half of 2026 of 6.0p, higher than 4.5p last year. The interim dividend will be paid on September 18 to shareholders on the register on August 7.
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