Rolls-Royce Keeps FY2026 Guidance Despite Mideast Risk

Rolls‑Royce Holdings (tickers RYCEF, RYCEY) said in a trading update on April 30, 2026, that it will maintain its FY2026 guidance for underlying operating profit and free cash flow. The company expects to fully offset the financial impact of Middle‑East disruption through operational measures.

Guidance Intact for 2026

The update, issued ahead of the annual shareholders meeting, confirmed FY2026 guidance for underlying operating profit of £4.0–4.2 billion and free cash flow of £3.6–3.8 billion. Large-engine flying hours for the three months ending March 31, 2026, rose 5.0% to 115.0% of 2019 levels. Rolls‑Royce forecasts full-year flying hours at 115.0–120.0% of 2019 levels.

Management attributed the outlook to progress on its transformation plan and self-help actions. It expects to fully mitigate the financial impact of the Middle‑East disruption through operational adjustments and capacity reallocation. The update cited FY2025 underlying operating profit of £3.5 billion and free cash flow of £3.3 billion as the recent baseline for the outlook.

Divisions Drive Strong Start

Rolls‑Royce reported a strong start across its Civil Aerospace, Defence, and Power Systems divisions, which supported the decision to keep guidance unchanged.

In Civil Aerospace, Middle‑East airline flying hours recovered substantially, with activity on A350/Trent XWB services returning to pre-conflict levels. This regional uptick contributed to the rise in engine utilization during the quarter.

Defence original-equipment deliveries grew more than 20.0% year-over-year in the quarter, while aftermarket performance improved, bolstering revenue and margin momentum.

Power Systems saw about a 50.0% increase in first-quarter order intake for gas and diesel engines, with a record March driven by demand from data centers and government customers.

Half-year results are scheduled for July 30, 2026.