Rolls-Royce has revealed soaring profits as strong demand for its engines offset supply chain challenges and tariffs.
Shares in the company surged to a new record level on Thursday morning as a result.
The FTSE 100 firm said the results showed continued success in the long-term transformation plan first laid out by the company in 2023.
On Thursday, the engineering giant revealed that underlying operating profits jumped by 50% to £1.7 billion for the first half of 2025.
Rolls-Royce raised its financial forecasts for 2025 as a result, predicting underlying operating profits between £3.1 billion and £3.2 billion this year.
It represents a significant upgrade after previously pointing towards profits between £2.7 billion and £2.9 billion.
Rolls-Royce, which makes engines used in large Boeing and Airbus planes, said it was supported by a “strong” performance in its large engines business, as well as margin improvements on contracts.
The company said underlying revenues in its civil aerospace arm grew by 17%, with growth of 20% in its power systems division.
The London-listed business cheered the “strong” performance in the face of “an uncertain external environment, including continued supply chain challenges and tariffs”.
It said Rolls-Royce is expecting to fully offset the impact of announced US tariffs through mitigating actions and is also monitoring the potential indirect impact of weaker economic growth and trade tensions.
Rolls-Royce also highlighted “some improvement” in its supply chain, resulting in improvement availability for finished parts, but recorded inflationary pressure in product costs.
Tufan Erginbilgic, chief executive of the company said: “Our multi-year transformation continues to deliver.
Our actions led to strong first half year results, despite the challenges of the supply chain and tariffs.
“We are continuing to expand the earnings and cash potential of Rolls-Royce.
“A strong start to the year gives us confidence to raise our guidance for 2025.”
Rolls-Royce shares were 9% higher at 1,077p on Thursday morning.
