Rolls-Royce Power Systems sees double-digit growth – energy and governmental business drive earnings

Adjusted for the sale of the lower power engine business last year, revenue rose by 20% to €2.4 billion* (£2.0 billion*), while adjusted operating profit increased by 89% to €371 million (£313 million). Growth drivers for all key figures were once again energy supply for data centres and governmental business in military and civil applications.

In addition to significant orders from data centre operators, the outstanding economic successes of the first half of the year included the largest order to date for the delivery of a battery energy storage system (BESS) for a Lithuanian energy supplier and the extension of the framework agreement with the major Italian yacht manufacturer Sanlorenzo for mtu propulsion, exhaust aftertreatment and automation systems for superyachts.

Dr Joerg Stratmann, CEO Rolls-Royce Power Systems, said: “Our strong performance in the first half of the year shows that we are on the right track. With a clear strategic focus, high-quality products and strong innovative capabilities, we are growing profitably and faster than the market – in a challenging global environment. I am particularly proud of the trust our customers place in us, our strong order intake and the momentum in our focus markets – from energy supply and governmental business to maritime applications. At the same time, we are investing more than ever before in new engine platforms, forward-looking technologies and the expansion of our plants. This will enable us to lay the foundations for sustainable growth and strengthen our technological leadership. We owe this development above all to the commitment of our employees – at our locations around the world, in Germany and in Friedrichshafen. They drive innovation, master complex challenges and deliver outstanding performance every day. I would like to express my sincere thanks to all of them," Stratmann continued.

The number of employees continues to grow. There are vacancies at many German plants and locations, e.g. Friedrichshafen, Magdeburg, Augsburg and Ruhstorf. Additional employees will also be hired in Aiken and Mankato (both in the USA) as part of the plant expansions.

The order backlog for new business now stands at a record level with OE order coverage of 100% for the remainder of 2025 and 43% for 2026. Order intake was €3.5 billion (£2.9 billion) with a book-to-bill ratio of 1.4x. This represents a 32% increase compared to the prior period driven by strong power generation demand where order intake rose by 68%.

Trading cash flow was €505 million (£425 million) versus €142 million (£121 million). The increase was mainly due to higher operating profit alongside improved working capital performance.

The improved result and higher liquidity allows Rolls-Royce Power Systems to continue investing in profitable growth and its future in the global market, with a strategic focus on the energy business, government business, large yachts and commercial shipping, battery storage and services. Rolls-Royce is currently investing heavily in the development of a new mtu engine platform. Compared to competing products, the new engines will offer higher power density, lower emissions and improved fuel consumption, and will be available from 2028. In addition, engines for military land vehicles will be further developed for higher power density.

At the same time, Rolls-Royce Power Systems is investing more than ever before in production plants and equipment to keep pace with growth. Approximately $100 million is being invested in the expansion of the Aiken engine plant in South Carolina and the expansion of the energy systems plant in Mankato, Minnesota. In China, the first engine in the mtu 4000 series for the oil and gas industry, manufactured entirely in China, rolled off the production line a few days ago at the MTU Yuchai Power joint venture; while the first engine in the new generation of the mtu 2000 series was built in Suzhou, China.

In mid-2026, part of the large-scale modernisation of the production facilities in Friedrichshafen will be completed with the commissioning of a new assembly line for the mtu Series 4000. Other parts of the plant will be continuously modernised to adapt to rising sales figures and to enable production to be as efficient as possible using state-of-the-art technology.

* Figures in € are informative. Figures in £ are binding. Results converted at the average exchange rate reported (exchange rate £ to €: 2024: 1.1702, 2025: 1.1878), changes compared to the same period of the previous year converted at constant exchange rates (exchange rate £ to €: 1.1812) and adjusted for M&A effects in 2024. The press release on the half-year results for the Rolls-Royce plc Group as a whole, as well as further information on the Power Systems division, can be found at www.rolls-royce.com

Read the article online at: https://www.worldpipelines.com/business-news/04082025/rolls-royce-power-systems-sees-double-digit-growth-energy-and-governmental-business-drive-earnings/