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“BUSINESS

Rolls's record engine revival

Derby's sprawling Rolls-Royce campus, employing 15,000 people, has been at the cutting edge of British industry for more than a century.

Derby’s sprawling Rolls-Royce campus, employing 15,000 people, has been at the cutting edge of British industry for more than a century.

And it is in a 1920s block at the heart of the vast site that the FTSE 100 giant’s recent recovery has taken flight.

Rolls-Royce turned to the building, derelict for decades, when the firm’s Trent 1000 engines suffered major problems resulting in cracks and erosion.

Millions of pounds of investment later – but with its century-old roof and gantries still intact – the hangar was retooled for use in a major programme of engine upgrades as the company battled to fix the issue and restore its reputation.

It is the oldest part of the Derby site but symbolises Rolls-Royce’s stunning recovery as a powerhouse of UK industry under hard-charging chief executive Tufan Erginbilgic, who took over in 2023.

After its near-collapse during the pandemic, Erginbilgic has powered the group back to profitability. And today its core civil aviation business is not only seeking to shore up its ”

Excerpt From

“Rolls's record engine revival”

John-Paul Ford Rojas

Daily Mail

https://apple.news/AICWGRk-bQG-58szeCoP4Vg

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“BUSINESS

Rolls-Royce closes in on a new jet engine contract as it squares up to US rival GE

Rolls is trying to put problems with its Trent 1000 engine behind it, upgrading its existing customers' engines and now looking for new airlines to sell them to.

Rolls-Royce is on the verge of signing a new contract to supply an unnamed airline with its Trent 1000 aircraft engine as it squares up to US rival GE.

The deal will help it win back market share after years of problems with the engine.

Rolls has staged an astonishing recovery under the leadership of boss Tufan Erginbilgic, who has regained customers’ trust after the Trent 1000 experienced years of problems, including cracks and erosion.

Rolls is upgrading customers’ engines and, earlier this year, won back LATAM Airlines with a deal to power three 787 aircraft.

Yesterday, Rolls executive Celine Bouas said a new deal was in the offing, adding: ‘The last three or four months have been really positive. There’s one very mature deal in the pipeline.’

Bouas said the client had bought engines from rivals such as GE and CFM for decades, and she hoped to announce the order soon.

”

Excerpt From

“Rolls-Royce closes in on a new jet engine contract as it squares up to US rival GE”

Daily Mail City & Finance Reporter

Daily Mail

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“ Rolls-Royce is a world leader in engine design (Credit: Rolls-Royce)

Rolls-Royce in race to perfect engine which will slash cost of air travel

Britain has the chance to create a new jet engine which could transform aviation and see ticket prices slashed through unprecedented fuel efficiency.

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Rolls-Royce has the chance to lead the world in the next generation of aircraft engines which have the potential to slash the price of tickets as well as carbon emissions and noise levels. New "Ultrafan" technology is in development at Rolls-Royce's giant facilities at Derby where generations of families have worked for the engineering powerhouse. Designers are racing against a host of international competitors to be the first to unlock a new chapter in aviation.

Rolls-Royce is poised to re-enter the engine market for "narrowbody" aircraft - the medium-sized planes used by many Britons to reach their holiday destinations each year. Production of this size of plane is forecast to double over the next 25 years in what it considers the "single biggest growth opportunity for the UK aerospace industry over the next 50 years".

The company is now pushing the Government ”

Excerpt From

“Rolls-Royce in race to perfect engine which will slash cost of air travel”

David Williamson

Express

https://apple.news/AhVzzIaZDQ_SjlZjdfxfnlg

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“Stock Markets

Why is Rolls-Royce stock surging today?

Jun 12, 2026 11:26 GMT

nvesting.com -- Rolls-Royce Holdings PLC stock surged 4.4% to trade at 1,308p today, propelled by a powerful combination of fresh analyst conviction and a sector-wide re-rating of European aerospace names.

The primary spark came from Berenberg, which upgraded the stock to Buy from Hold, raising its price target to 1,430p from 1,270p, and followed up today with a bullish sector note reaffirming Rolls-Royce as the strongest-positioned engine maker in Europe — specifically citing its younger fleet profile and superior flight-hour growth trajectory compared to peers.

The analyst case rests on hard data: Rolls-Royce’s thrust-adjusted large commercial engine flying hours grew 5% year-to-date, outpacing Safran at 2% and MTU Aero Engines, which was actually negative over the same period. Berenberg also raised its 2026 free cash flow estimate by 3%, adding quantitative weight to the upgrade.

Separately, Bank of America data showed that widebody engine families — Rolls-Royce’s core commercial market — remained resilient in May 2026 even as legacy narrowbody engines saw steep declines, further validating the bull thesis.

Rolls-Royce’s own April trading update, which reaffirmed 2026 “guidance of £4.0bn–£4.2bn in underlying operating profit, provided a solid fundamental floor underpinning the analyst optimism.

Taken together, the Berenberg upgrade’s lingering momentum, a targeted sector note identifying Rolls-Royce as the top pick among European aerospace peers, supportive widebody engine demand data, and a broadly risk-on global market backdrop combined to push the stock to a session high of 1,324.2p — keeping it well within striking distance of its 52-week high of 1,420p.

Excerpt From

“Why is Rolls-Royce stock surging today?”

Investing.com

https://apple.news/AF-DLLxvESwK7OhqCLgeBiA

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Adam Newman, Chief Engineer of the Hydrogen Demonstrator Program at Rolls-Royce, said,

“The pace of delivery has been critical, and the insights gained, many of which are fuel agnostic, will now be applied across our future programs, including UltraFan, strengthening our confidence that the gas turbine will remain at the forefront of sustainable aviation’s future,” he continued.

“100% hydrogen-powered jet engine from Rolls-Royce reaches full power in landmark test

A major milestone in the race toward sustainable aviation has been achieved after a Rolls-Royce jet engine successfully reached full take-off power while running entirely on hydrogen fuel.

The breakthrough was made possible through a collaboration between Rolls-Royce and scientists from Britain’s Health and Safety Executive (HSE), whose expertise helped support what is being described as a world-first hydrogen aviation research program.

The achievement marks the first time a jet engine has reached full take-off thrust using 100 percent hydrogen, providing valuable insights into the feasibility of hydrogen as an alternative to conventional aviation fuels.

The program also highlighted the growing role of safety-led engineering in accelerating the development of emerging clean-energy technologies.

Building critical hydrogen infrastructure

The work was carried out with support from HSE’s specialist research team based at its Science and Research Centre in Buxton.

Scientists collaborated with Rolls-Royce to design, manufacture, and install high-flow, high-pressure hydrogen control and monitoring systems needed to safely conduct the engine tests.

The effort culminated in the Engine GH2 test program, which represented the first time this ”

Excerpt From

“100% hydrogen-powered jet engine from Rolls-Royce reaches full power in landmark test”

Atharva Gosavi

Interesting Engineering

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Https://www.ii.co.uk/analysis-commentary/five-uk-blue-chips-among-these-25-best-stock-ideas-ii537939

On Rolls-Royce, BofA said the current valuation discount to peers Safran SA and MTU Aero Engines AG will be a key focus for the market in 2026, particularly given that the group appears to be running well ahead of the 2028 guidance of £4.2 billion-£4.5 billion in free cash flow.

The bank said: “We see Rolls delivering more than £5.5 billion in free cash flow in 2030, driven by the acceleration in A350 deliveries, continued progress on flight hour pricing and stabilisation in shop visits from 2026.”

Capital returns will be another important driver as the bank expects Rolls to announce at least a £2 billion buyback with annual results in February.

From 2026 to 2030, it sees the potential for Rolls to return £16 billion via buybacks and £6 billion in dividends while maintaining a £6 billion net cash position by the decade-end.

The bank expects Rolls to trade at a 26 times forecast 2029 free cash flow, which leads to a new price target of 1,615p. This compares with this afternoon’s 1,239.5p and 100p in early 2023.

It added: “We view valuation as attractive versus peers given improving free cash flow generation and the balance sheet provides capital allocation optionality near term. As one of the cheapest civil aerospace assets globally today, we see potential for a strong re-rating in 2026.”

It's a significant milestone for the multibillion-dollar tiltrotor project, which service leadership has demanded be accelerated and is expected to replace many Black Hawk helicopters.

Rolls-Royce is the world's 25th largest defense contractor by revenue, according to Defense News analysis.

https://apple.news/AJe-RaEboQcewFDfhektrug

Thanks for the insight Mole2. Be interesting to see what develops then, as RR will want to retain their position with Airbus if they do decide on a larger variant.

Mole2, thanks. Would 4 engines once again be an option to consider then, given the recent improvements in durability, time on wing and efficiency?

Will An Airbus A350-2000 Take On The Boeing 777X?

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Anyone who thought the surge in artificial intelligence spending might ease should look away now. UBS notes that America’s big four cloud providers have unveiled yet another round of eye-watering investment plans.

Alphabet expects $91-93 billion of capital spending next year, Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) is aiming for as much as $72 billion, Microsoft wants to double data-centre capacity within two years, and Amazon is guiding to $125 billion for 2025 with more to come.

UBS has lifted its global AI capex forecast to $423 billion this year and $1.3 trillion by 2030, a compound annual growth rate of 25%.

Money alone will not do the trick. A reliable supply of cheap power is becoming the limiting factor.

Satya Nadella, Microsoft Corp's (NASDAQ:MSFT) chief executive, said his biggest problem is building data centres quickly “close to power,” warning that without the right infrastructure, he could end up with “a bunch of chips sitting in inventory that I can’t plug in.”

Amazon.com Inc's (NASDAQ:AMZN) boss voiced similar concerns. NVIDIA’s Jensen Huang went further, arguing that China could “win the AI race” because lower energy costs and subsidies give its tech companies a structural advantage.

UBS remains positive on AI platforms and the companies that help build them, but says the bottleneck is now energy infrastructure.

In the United States, hyperscaler demand is driving a surge in electricity and storage needs.

Only a quarter of the required storage capacity is met domestically, which UBS thinks will spark heavy investment in grid upgrades, new generation and advanced storage technologies.

Temporary flexibility on imported storage systems should keep expansion on track, but greater participation from US suppliers looks inevitable.

China, meanwhile, has added about half of the world’s new electricity generation over the past year, three-quarters of it solar.

UBS views this as a strategic energy shift designed to cut reliance on imported fuels and strengthen China’s tech sector.

New solar, heavy subsidies for storage and the “Eastern Data, Western Computing” initiative are intended to give Chinese data-centre operators a cost edge that offsets the higher power draw of local AI chips.

Demand for electricity is not just an AI story. Electrification of transport and industry is picking up pace. UBS highlights strong order momentum across electrical equipment makers, grid specialists and utilities.

With roughly $3 trillion a year of investment expected by 2030 in power generation, storage, grids, data centres and electrified transport, the bank argues that energy and resources offer a broad opportunity set.

The message is simple: the AI boom will only go as far as the power system allows, and that makes energy infrastructure one of the defining investment themes of the next decade.

https://apple.news/Ak2PgRnIsQ-ShZJifVgTo4g

We’re expanding our energy portfolio with a powerful new solution for data centres and grid stability.

Starting in 2026, our new 20-cylinder mtu Series 4000 L64 gas engine for the 60 Hz market will deliver a 10% performance boost over the previous version and start in just 45 seconds.

mtu fast-start gas gensets provide a reliable solution for emergency and continuous power, especially where grid capacity falls short. With 84,000 hours before overhaul and compatibility with sustainable fuels - including biogas, biomethane, and future hydrogen - this is a future-ready solution for growing energy demands.

Read more: https://ow.ly/9eV650XbGzq

LOL! My understanding is that the CO2 sequestration process utilises the purified CO2 for industry such as carbonated drinks, which is a revenue stream, then permanently storing the remaining CO2. Not sure where or how yet though from the article. Heat and electricity also generated in the process. Seems like a win win to me and could be used to help decarbonise the cement and plastics production industries. Another string to our bow in the RR product portfolio and future revenue stream.

We have worked together with energy services provider Landmark and carbon dioxide specialist ASCO on a 10-megawatt gas engine power plant that will capture up to 30,000 tons of CO2 per year in the UK.

Six of our highly efficient combined heat and power plants based on mtu Series 4000 L64FNER gas engine ensure the reliable operation of the plant.

The purified CO2 is already on its way to be utilised in fizzy drinks while the power plant itself provides heat and electricity to households in the surrounding area.

Read more: https://ow.ly/3P5E50X7Ark

Rolls-Royce charting a steady flightpath

Rolls-Royce Holdings PLC (LSE:RR.) has been on a steady glide path since its big turnaround plan, and UBS thinks the next trading update will be more of the same.

The aerospace group reports in November, and the broker does not expect any surprises, just a reiteration of 2025 guidance and some upbeat commentary.

In civil aerospace, the key measure of flying activity, engine flying hours, is growing but only towards the lower end of the company’s target range.

UBS tracks a 6% rise so far this year, or 106% of 2019 levels, against guidance of 110–115%.

Even so, investors have shifted focus from flying hours to the more lucrative aftermarket work of servicing and parts, where margins are running strongly.

Elsewhere, demand remains firm in defence, while power systems are benefiting from data centre growth. Rolls is also expected to talk up its small modular reactor programme, pitched as a longer-term growth driver.

UBS has nudged its price target up from £13.10 to £13.50 after updating its valuation model. With the shares at £11.64, that implies about 16% upside.

The Swiss bank expects no drama in November, just further reassurance that the turnaround story is still on course.

Hungary looks to Rolls-Royce SMR to answer its future energy needs.

Senior representatives from Rolls-Royce SMR have met with Deputy Foreign Minister Levente Magyar to discuss the potential for deploying Europe’s leading Small Modular Reactor (SMR) technology in Hungary.

 

#Hungary has a proud nuclear heritage, with four operating nuclear reactors, and has a long history of safe and secure nuclear operations. The Ministry of Foreign Affairs and Trade of Hungary has expressed a strong interest in developing a collaborative relationship with Rolls-Royce SMR as part of a commitment to developing new nuclear power for their country’s future energy needs.

Director of Corporate and Government Affairs at Rolls-Royce SMR, Alastair Evans, said: “I am delighted to have the opportunity to meet with Deputy Minister Magyar to discuss our collaboration and how we can realise the enormous potential to deploy our SMR technology in Hungary.

“Hungary has strong ambitions to grow its nuclear industry and is keen to explore how Rolls-Royce SMR can play a part in providing clean, secure energy for generations to come.”

Deputy Minister of Foreign Affairs and Trade, Levente Magyar, said: “Hungary intends to rely on nuclear energy in the long term, since we are committed to decarbonization and energy sovereignty that can be accomplished by using both nuclear and renewable energy. The agreement we signed today is a good opportunity to start the essential information exchange between the partners that can contribute to the development of the first SMR of Hungary.”

Rolls-Royce SMR is continuing to explore potential future opportunities for deployment while it focuses strongly on delivery in the UK, where it was recently named as the preferred bidder in the Great British Nuclear SMR competition to deliver the first 3 UK SMR units; in the Czech Republic, where it has been selected by European utility ČEZ to deliver up to 3 GW of electricity; and in Sweden, where it is one of the final two SMR providers in their nuclear technology selection process.

The Rolls-Royce SMR technology is progressing through the final stage of assessment by the UK nuclear industry’s independent regulators – further ahead than any other SMR technology. Each ‘factory-built’ nuclear power station will provide enough affordable, low-carbon electricity to power a million homes for more than 60 years.

https://lnkd.in/e4jj2_kn

NEW DELHI, May 30 (Reuters) - Saudi Arabia is set to place orders for billions of dollars of Airbus (AIR.PA), opens new tab jets as the kingdom balances suppliers in its quest to match the aviation growth of Gulf neighbours, industry sources said.

Leasing company AviLease, which placed an order for 30 Boeing (BA.N), opens new tab 737 MAX jets during a visit to the region this month by U.S. President Donald Trump, could place a comparable order for Airbus A320neo jets at next month’s Paris Airshow, they said.

The fast-growing company, which aims to be one of the world’s top lessors, is also potentially interested in Airbus A350 freighters, they added.

Barring a problem in negotiations, startup airline Riyadh Air appears poised to select the Airbus A350 over Boeing’s delayed 777X, they said.

The possible Riyadh Air A350 deal, which Bloomberg earlier reported could involve 50 jets, would also be announced at one of this year’s trade shows.

Airbus declined comment. AviLease was not immediately available.

Riyadh Air reiterated it was studying an order for large wide-body planes. “A decision will be made in the coming months,” a spokesperson added.

Reporting By Tim Hepher and Allison Lampert;Editing by Elaine Hardcastle

https://www.reuters.com/business/aerospace-defense/saudi-firms-place-orders-dozens-airbus-jets-sources-say-2025-05-30/#:~:text=NEW%20DELHI%2C%20May%2030%20(Reuters,Gulf%20neighbours%2C%20industry%20sources%20said.

Rolls-Royce may want to give traditional airplanes a hydrogen makeover.

The British aerospace and defense firm filed a patent application for a “cryogenic fueled aircraft.” The patent details a way to complement a plane’s typical engine with one fueled by hydrogen.

“In order to limit emissions of carbon dioxide, use of hydrogen as an alternative to hydrocarbon fuel in gas turbine engines has historically only been practical in land-based installations,” Rolls-Royce said in the filing.

Notably, Rolls-Royce claims this design can be retrofitted to existing aircraft, allowing operators to switch between using hydrogen and traditional jet fuel.

Because hydrogen has a very low density in its gaseous form (and thereby takes up a lot of space), this patent pitches storing hydrogen cryogenically, or at extremely low temperatures in its liquid form.

The filing also suggests safety improvements by keeping the hydrogen fuel tanks external to the fuselage, reducing the risk to passengers in the event of a leak or fire. The fuel tanks themselves are also separate from one another, with each tank containing multiple hydrogen containers. That creates failsafes if one goes haywire.

Flying isn’t exactly great for the environment. Aviation accounted for roughly 2% of global carbon emissions in 2022, according to the International Energy Agency. But much of the industry recognizes this problem, with members of the International Air Transport Association — which includes airlines such as United, Delta, and American — committing to reaching net zero emissions by 2050. The Federal Aviation Administration has made similar goals.

Rolls-Royce has been testing the waters with hydrogen as an alternative for several years now. The company has partnered with discount airline easyJet to build and test hydrogen-powered engines, and launched the Hydrogen in Aviation alliance in partnership with easyJet and Airbus last September.

However, hydrogen as a power source faces some large barriers in many use cases. As the patent seeks to address, hydrogen needs to be kept at extremely low temperatures and high pressures due to its low energy density. The transportation, storage, and dispensing of this fuel would require significant and costly changes to infrastructure.

Plus, the cost of producing green hydrogen is prohibitive, with a Harvard University study published this week reporting that notoriously expensive carbon capture may be a more cost-effective way of cutting emissions. 

And despite the company’s continued research in the area, Rolls-Royce CEO Tufan Erginbilgic told media in November that hydrogen has a long way to go before it could be considered a legitimate alternative.

https://apple.news/AxU_QYb3fQFmGVCRf_6Lqsg

https://www.theguardian.com/uk-news/2023/mar/10/jeremy-hunt-budget-cut-carbon-emissions-clean-energy-small-nuclear-reactors