 | |
| Rolls-Royce | |
| Company type | Public |
| LSE: RR. FTSE 100 Component | |
| ISIN | GB00B63H8491  |
| Industry | Aerospace,Defence,Energy,Marine |
| Predecessor | Rolls-Royce plc |
| Founded |
|
| Founder | Charles Rolls andHenry Royce (asRolls-Royce Limited) |
| Headquarters | Kings Place,London, England, U.K. |
Key people | Anita Frew (chair) Tufan Erginbilgic (CEO) |
| Revenue |  £18,909 million (2024)[1] |
| £2,906 million (2024)[1] | |
| £2,484 million (2024)[1] | |
| Total assets | £35,686 million (2024)[1] |
| Total equity |  £(881) million (2024)[1] |
Number of employees | 50,000 (2025)[2] |
| Subsidiaries | |
| Website | rolls-royce |
Rolls-Royce Holdings plc is a Britishmultinational aerospace and defence company incorporated in February 2011. The company owns Rolls-Royce, a business established in 1904 which today designs, manufactures and distributes power systems for aviation and other industries. Rolls-Royce is the world's second-largest maker ofaircraft engines[3] (afterCFM International)[4] and has major businesses in themarine propulsion andenergy sectors.
Rolls-Royce was the world's 16th largestdefence contractor in 2018 when measured by defence revenues.[5] The company is also the world's fourth largest commercial aircraft engine manufacturer, with a 12% market share as of 2020[update].[6]
Rolls-Royce Holdings plc is listed on the London Stock Exchange, where it is a constituent of theFTSE 100 Index. At the close of London trading on 11 February 2025, the company had amarket capitalisation of£52.66bn, the 11th-largest of any company with a primary listing on the London Stock Exchange.[7]
The company'sregistered office is atKings Place, nearKings Cross inLondon.[8]
Rolls-Royce grew from the engineering business ofHenry Royce, which was established in 1884 and ten years later began to manufacturedynamos and electriccranes.Charles Rolls established a separate business with Royce in 1904 because Royce had developed a range of cars which Rolls wanted to sell. A corporate owner was incorporated in 1906 with the nameRolls-Royce Limited.[9]
In 1971 the same company, Rolls-Royce Limited, entered voluntary liquidation because it was unable to meet its financial obligations. It remains in existence today, still in liquidation. Its business and assets were bought by the government using a company created for the purpose named Rolls-Royce (1971) Limited.Rolls-Royce Motors was separated out in 1973. Rolls-Royce (1971) Limited currently carries on the business under the name Rolls-Royce plc.[10]
Rolls-Royce plc returned to the stock market in 1987 under the government ofMargaret Thatcher. In 2003 ownership of Rolls-Royce plc was passed to Rolls-Royce Group plc. In the same way, Rolls-Royce Group plc passed ownership on 23 May 2011 to Rolls-Royce Holdings plc.[11] Throughout these corporate changes Rolls-Royce plc has remained the principal trading company.[11][nb 1]
The 1980s saw the introduction of a policy to offer an engine fitment on a much wider range of civil aircraft types, with the company's engines now powering 17 different airliners (and their variants) compared toGeneral Electric's 14 andPratt & Whitney's 10.[12]
The civil engines business represents the company's main area of growth. Between 2010 and 2018, Rolls-Royce invested £11 billion in facilities andR&D and launched six new civil engines including theTrent XWB and thePearl 15 for the business aviation market. It secured orders for 2,700 engines forwide-body aircraft andbusiness jets. It expects to produce over 600 wide-body engines a year and should power over half of the world's wide-body fleet within a few years, up from 22% a decade before.[13]
In 2023, Rolls-Royce entered into an agreement for $3.52 million of funding with theUK Space Agency for the creation of a nuclear reactor onthe moon. The project is intended to provide power for space missions.[14]
In 2014 and 2015, Rolls-Royce issued at least four profit warnings due to US defence cuts, a downturn in the offshore oil and gas market and its civil aerospace business, the company initiated job cuts of over 3,000 in response.[15][16][17][18] Rolls-Royce had been selling many of its aero-engines in combination with long-term service contracts. Even though the company booked profits in part with the delivery of the engine, actual payments only came in over time. Between 2003 and 2015, it sold a majority of its engines with these “TotalCare” contracts.[19] The company announced it would no longer be able to move its revenues forward from its long-term service contracts to compensate for its contracts being unprofitable in the early stages after the introduction ofIFRS 15 in 2018 and its profits for 2015 would have been £900m lower than the £1.4bn it reported if it had followed thenew accounting standard.[20][21][22]
In February 2017, Rolls-Royce posted its largest ever pre-tax loss of £4.6 billion; This included a £4.4 billionwritedown on financial hedges that the company uses to protect itself against currency fluctuations, and a £671 million penalty to settle bribery and corruption charges with theSerious Fraud Office (SFO), the US Department of Justice, and Brazilian authorities.[23]
On 14 June 2018, the company announced a restructuring of the business to create three simplerdecentralised units (civil aerospace,defence andpower systems), to rationaliseback office functions and to removemiddle management functions. Thecost savings should amount to £400 million per year by 2020, with an up-front restructuring cost of £500 million. Some 4,600 people[24] are likely to leave the business out of 55,000 employed worldwide, 3,000 job losses from the UK and the rest from elsewhere in the world[25] (15,700 of the employees work inDerby and 10,300 work elsewhere in the United Kingdom).[26][27]
In August 2018, Rolls-Royce announced it was taking a charge of £554 million to cover faults with someTrent 1000 engines onBoeing 787 Dreamliners. Rather than going thousands of hours between inspections, the faults with turbine blades mean the engines currently require inspection every 300 hours of flight. In the same announcement Rolls-Royce, said it would spend £450m fixing faults on the Trent 1000 in 2018, £450m in 2019 and £350m in 2020, with the work complete by 2022.[28]
In May 2020, the company announced its intention to cut 20% of its workforce (approximately 9,000 staff) worldwide as a result of theCOVID-19 pandemic.[29][30] Around 3,000 job losses were expected in the UK, half of them in Derby.[31]
In February 2021, Rolls-Royce started talks concerning an operational shutdown of its civil aerospace unit that might last for two weeks due to the impact of Covid-19 and its restrictions.[32]
Rolls-Royce announced, in October 2023, that it would cut 2,500 jobs, or 6 per cent of its total workforce.[33]
Under CEO Tufan Erginbilgiç Rolls Royce has seen a remarkable turnaround. In July 2025 the share price hit £11 for the first time, from £1 three years ago. Rolls Royce is now the fifth largest company in the FTSE 100 index, valued at £90 billion. Midterm 2027 targets for operating profit were hit two years ahead of estimates, and a jump from £2.6-2.9 billion in 2025 to £3.6-£3.9 billion in 2028 is projected in terms of operating profit per annum. In July the estimates for operating profit for full year 2025 were uprated by £300 million.[34][35]
Rolls-Royce's £90 millionTestbed 80 in Derby is the largest of its kind, sized for engines of up to 140,000 lbf (620 kN) of thrust.[40] Design started in 2017, construction began in 2018 and it was officially opened in 2021.[41] The 80,730 sq ft (7,500 m2) facility is 426.5 ft (130.0 m) long, has a 95 ft (29 m) tall intake tower and a 123 ft (37 m) tall exhaust stack. Built from 3,450 tons of steel and 27,000 m3 (950,000 cu ft) of concrete, it has a 49 by 49 ft (15 by 15 m) tall and wide enclosed space and it can handle a 66 tons engine including its carrier.[40] The company completed its first engine run on the new test bed in July 2024.[42]
X-ray imaging allows to visualize the position of seals and clearances in real time while an engine is running. While it was retrofitted on Rolls' test bed 57, test bed 80 is the first to be purpose-designed forindustrial radiography. To protect from external X-ray, 30 cm (11.8 in.) oflead, double walls are up to 8.9 ft. (2.7 m) thick (a 5.6-ft. interior wall and 3.3-ft. exterior wall) and provide acoustic insulation. Canadian prime contractor MDS Aero Support is responsible for design and management, test systems supply, engine adapters, support systems and data acquisition and control while construction is done byBuckingham Group Contracting.[40]
In 1988, Rolls-Royce acquiredNorthern Engineering Industries (NEI), based in theNorth East of England, a group of heavy engineering companies mainly associated with electrical generation and power management. The group includedClarke Chapman (cranes),Reyrolle (now part ofSiemens) andParsons (now part ofSiemens steam turbines). The company was renamed Rolls-Royce Industrial Power Group. It was sold off piecemeal over the next decade as the company re-focused on its core aero-engine operations following the recession of the early 1990s.[43]
On 21 November 1994, Rolls-Royce announced its intention to acquire theAllison Engine Company, an American manufacturer of gas turbines and components for aviation, industrial and marine engines.[44] The two companies had a technical association dating back to the Second World War. Rolls-Royce had previously tried to buy the company whenGeneral Motors sold it in 1993, but GM opted for a management buyout instead for $370 million. Owing to Allison's involvement in classified and export restricted technology, the 1994 acquisition was subject to investigation to determine the national security implications.[45] On 27 March 1995, the US Department of Defense announced that the"deal between Allison Engine Co. and Rolls-Royce does not endanger national security."[46] Rolls-Royce was, however, obliged to set up aproxy board to manage Allison and had also to set up a separate company,Allison Advanced Development Company, Inc., to manage classified programmes"that involve leading-edge technologies" such as theJoint Strike Fighter programme.[46] In 2000, this restriction was replaced by a more flexibleSpecial Security Arrangement.[47] In 2001, Rolls-Royce and itsLiftSystem was among the group that won the JSF contract for theF-35.[48]
The Allison acquisition, at $525 million (equivalent to £328 million),[44] brought four new engine types into the Rolls-Royce civil engine portfolio on seven platforms and several light aircraft applications. Allison is now known asRolls-Royce Corporation, part ofRolls-Royce North America.[49]
In 1999 Rolls-Royce acquiredVickers plc for its marine businesses.[50] The portion retained is now Vinters Engineering Limited. Rolls-Royce sold Vickers Defence Systems (the other major Vickers area of business) toAlvis plc in 2002.[51]
Rolls-Royce has established a leading position in the corporate andregional airline sector through the development of the Tay engine, the Allison acquisition and the consolidation of theBMW Rolls-Royce joint venture. In 1999, BMW Rolls-Royce was renamed Rolls-Royce Deutschland and became a 100% owned subsidiary of Rolls-Royce plc.[52]
Optimized Systems and Solutions Limited (formerly known as Data Systems & Solutions) was founded in 1999 as a joint venture between Rolls-Royce plc andScience Applications International Corporation (SAIC). In early 2006, SAIC exited the joint venture agreement, making Rolls-Royce plc the sole owner.[53]
In March 2011, Rolls-Royce andDaimler AG launched a $4.2 billion public tender offer for 100 per cent of the share capital ofTognum AG, the owner ofMTU Friedrichshafen – a leading high-speed industrial and marine diesel engine manufacturer, which was completed using a 50:50 joint venture company.[54] Rolls-Royce and Daimler AG intend that the joint venture company, which also now incorporates Rolls-Royce's existing Bergen engine business, is listed on theFrankfurt Stock Exchange.[54]
Following the acquisition of Goodrich byUnited Technologies Corporation in July 2012, Rolls-Royce announced it would purchase Goodrich's 50% share ofAero Engine Controls to become wholly owned by Rolls-Royce.[55]
At the June 2019Paris Air Show, Rolls-Royce announced its acquisition of Siemens' electric propulsion branch (while they are partners on theE-Fan X demonstrator), to be completed in late 2019, employing 180 in Germany and Hungary.[56]
In May 2014, Rolls-Royce sold its energy gas turbine and compressor business to Siemens for £785 million.[57]
In July 2018, Rolls-Royce sold its commercial marine business toKongsberg for £500 million.[58]
In September 2019, Rolls-Royce agreed to sell its civil nuclear services businesses in the U.S., Canada, Mondragon France, and Gateshead UK to theWestinghouse Electric Company for an undisclosed sum. These businesses had a revenue of $70 million and about 500 employees in 2018. Rolls-Royce is keeping its nuclear new build andsmall modular reactor (SMR) business in the UK.[59] In November 2020, the company announced plans to build up to 16Rolls-Royce SMR nuclear plants across the UK, continuing its nuclear division operations.[60] In December 2020 Rolls-Royce announced it would sell other foreign parts of its civil nuclear instrumentation and control business toFramatome as part of its post-COVID recovery plan, completing the deal involving over 550 employees in November 2021.[61][62]
In 1996, Rolls-Royce andAirbus signed amemorandum of understanding, specifying theTrent 900 as the engine of choice for the then A3XX, now theAirbus A380.[63] However, theEngine Alliance GP7000 would ultimately also be offered as an option on the A380.[64]
In October 2006, Rolls-Royce suspended production of itsTrent 900 engine because of delays by Airbus on the delivery of theA380 superjumbo. Rolls-Royce announced in October 2007 that production of the Trent 900 had been restarted after a twelve-month suspension caused by delays to the A380.[65]
In 2011, Rolls-Royce faced scrutiny after high profile incidents involving the Trent 900. One of the engines suffered a partial power loss during aQantas flight in February 2011. This followed an incident in November 2010 in which an engine disintegrated in flight causingQantas Flight 32 to make an emergency landing in Singapore.[66] The aircraft was extensively damaged and the airline grounded its fleet of A380s. The problem was traced to a fatigue crack in an oil pipe requiring the replacement of some engines and modifications to the design.[67] Trent-powered A380s operated byLufthansa andSingapore Airlines were also affected. Qantas gradually returned its A380s to service over several months. In June 2011 the airline announced it had agreed to compensation of AU$95m (US$100m) from Rolls-Royce.[68]
On 17 April 2015, it was announced that Rolls-Royce had received its largest order to date worth £6.1bn ($9.2bn) to supply engines for 50 Emirates A380 planes.[69][70][71]
On 6 April 2004,Boeing announced that it had selected both Rolls-Royce and General Electric to power its new 787. Rolls-Royce submitted theTrent 1000, a further development of that series.[72]
In July 2006, Rolls-Royce reached an agreement to supply a new version of theTrent 1000 for the revisedAirbus A350XWB jetliner. As of July 2015, over 1,500 engines of this type have been supplied to 40 customers.[73]
On the military side, Rolls-Royce, in co-operation with other European manufacturers, has been a major contractor for theRB199 which in several variants powers thePanavia Tornado, and also for theEJ200 engine for theEurofighter Typhoon. Rolls-Royce has matured theRolls-Royce LiftSystem invented byLockheed Martin for the F-35 Lightning II to production level; The F-35 is planned to be produced in significant numbers.[74]
At the 2005Paris Air Show, Rolls-Royce secured in excess of $1 billion worth of orders. The firm received $800m worth of orders fromAir China to supply its 20Airbus A330 jets.[75]
On 18 June 2007, Rolls-Royce announced at the 2007 Paris Air Show that it had signed a large contract withQatar Airways for the Trent XWB to power 80 A350s on order from Airbus worth $5.6 billion at list prices.[76]
On 11 November 2007, Rolls-Royce announced at theDubai Airshow that it had signed its largest ever contract withEmirates for Trent XWBs to power 50 A350-900 and 20 A350-1000 aircraft with 50 option rights. Due to be delivered from 2014, the order is potentially worth up to 8.4 billion US Dollars at list prices.[77]
On 20 November 2007, Rolls-Royce announced plans to build its first Asian aero engine facility in theSeletar Aerospace Park, Singapore.[78] The $562m (£355m) plant complements its existing facility at Derby by concentrating on the assembly and testing of large civil engines, including Trent 1000 and Trent XWB. Productivity will be higher than at Derby, as the plant is fully integrated, as opposed to manufacturing occurring across five sites in the UK: a Trent 900 will take only 14 days to manufacture, as opposed to 20 in the UK. Originally expected to provide employment for 330 people,[79] by the start of production in 2012, 1,600 employees were based in Singapore.[80]
In May 2012,Rolls-Royce Marine Power Operations won a Ministry of Defence contract worth more than £400 million for the integration of the reactor design, thePWR3, for UK'snext generation nuclear-armed submarines.[81] In March 2023, Rolls-Royce announced that Rolls-Royce Submarines Limited will provide nuclear reactors for theSSN-AUKUS class of submarines for both the Royal Navy and Royal Australian Navy.[82] To support the SSN-AUKUS programme, Rolls-Royce announced it would double the size of the Rolls-Royce Submarines LTD site in Raynesway, Derby creating 1,170 jobs in the process[83]
Rolls-Royce has been accused numerous times of corrupt practices andbribery.
In 2014, facing allegations of bribery in the aftermath of theSudhir Choudhrie affair, Rolls-Royce offered to return money to the Indian government.[84] TheSerious Fraud Office (SFO) also investigated allegations of bribery in Indonesia and China.[85]
In February 2015 Rolls-Royce was accused of bribing an employee of Brazil's state-controlled oil company to win a $100 million contract to provide gas turbines for oil platforms.[86]
In October 2016 a jointGuardian and BBC investigation alleged widespread corruption by Rolls-Royce through middlemen in foreign countries including Brazil, India, China, Indonesia, South Africa, Angola, Iraq, Iran, Kazakhstan, Azerbaijan, Nigeria and Saudi Arabia. Rolls-Royce became subject to a major SFO investigation.[87]
In 2013 media reported allegations from two American ex-employees that thousands of the company's newjet engines were assembled with used parts.[88]
In January 2017 Rolls-Royce came to an agreement with the SFO to pay £671 million under adeferred prosecution agreement to avoid prosecution for bribery to obtain export contracts.[89][90] As part of this agreement, a $170 million fine was paid to US authorities to end a bribery investigation,[91] and $25 million to the Brazilian authorities.[89]
Subsequent to the settlement,Private Eye reported that some of Rolls-Royce's contracts under the scope of the SFO investigation had been supported by the British government'sUK Export Finance department, using taxpayers' money. The government department underwrote multimillion-pound liabilities under Rolls-Royce contracts secured with the help of bribes and "facilitation" commissions. It has also been highlighted in the press that Rolls-Royce's auditor since 1995,KPMG, had failed to identify any corrupt practices throughout the 1990s and 2000s. This is notable considering judgeBrian Leveson's statement that Rolls-Royce's offending was "multi-jurisdictional, numerous", "persistent and spanned from 1989 until 2013", and it "involved substantial funds being made available to fund bribe payments".[92]
As of August 2021[update] theboard of directors consists of:[93]
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Rolls-Royce's aerospace business makes commercial and militarygas turbine engines for military, civil, and corporate aircraft customers worldwide. In the United States, the company makes engines for regional and corporate jets,helicopters, andturboprop aircraft. Rolls-Royce also constructs and installs powergeneration systems. Its core gas turbine technology has created one of the broadest product ranges of aero-engines in the world, with 50,000 engines in service with 500 airlines, 2,400 corporate and utility operators and more than 100 armed forces, powering bothfixed- androtary-wing aircraft.Rolls-Royce Marine Power Operations (a subsidiary company) manufactures and testsnuclear reactors forRoyal Navalsubmarines.[94]
In 2019, Rolls-Royce delivered 510Trent powerplants, while 5,029 large engines were installed, including 32%Trent 700s.[95]Forbusiness jets,research and development in themarket niches is a $2 billion annual investment, for a predicted market of 8,500 to 9,000 aircraft over the 2020 decade.[96]
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