![\"Rolls-Royce](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/06\/Rolls-Royce-1200-x-800-1.jpeg.webp\")
\t\tRolls-Royce’s profit halved. (Getty)\t<\/p>\n\t\t\tThursday 30 July 2026 8:33 am\n\t\t\t<\/p>\n
\t\tRolls-Royce’s profit halved. (Getty)\t<\/p>\n
Rolls-Royce shares jumped on Thursday after the company hiked its targets and posted a near 50 per cent jump in operating profits in the first half of the year, as it reaps the rewards of a boom in defence spending.<\/p>\n
The FTSE 100 engineering firm said rising profitability across all of its \u2060divisions \u200bresulted in \u00a32.5bn \u200bunderlying operating profit for the first half, up 46 per cent in the same period last year.<\/p>\n
It now expects to \u200bmake \u00a34.7bn to \u00a34.9bn in underlying operating \u2060profit, up from its previous targets of between \u00a34bn and \u00a34.2 bn. Analysts had forecast profit of around \u00a34.2bn for the year.<\/p>\n
Chief Executive Tufan Erginbilgic, who has pushed through a sweeping overhaul of the aerospace and engineering group, said the company\u2019s \u201ctransformation continues to deliver\u201d.<\/p>\n
\u201cWe are demonstrating that Rolls-Royce is now a very different company to that of the past,\u201d he said. \u201cWe have unlocked new growth opportunities across the group and created a resilient and diversified portfolio, with three strong businesses that can respond to changes in\u00a0the external environment with agility and pace.\u201d<\/p>\n
The former BP executive said the company had lifted profitability in its civil aerospace division and established \u2060its leading position in defence.<\/p>\n
Shares in the company rose nearly four per cent in early trading.<\/p>\n
Statutory profit in the first half of the year was around \u00a31.6bn, compared to \u00a34.4bn in the first six months of last year, which bosses said was down to disposals and exchange rate movements.<\/p>\n
The company announced that an interim dividend of 6p per share would be paid out as chief executive Tufan Erginbilgic said Rolls-Royce could raise its guidance for 2026. Basic earnings per share come to around 19p, according to new company data.\u00a0<\/p>\n
Rolls-Royce\u2019s stocks<\/a> has soared in recent months, rising by over 42 per cent in the last year and enjoying a jump over last December and June. Deals<\/a> on small modular reactors across Europe have helped it extend its influence over the nuclear energy sector.\u00a0<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tBabcock and Rolls-Royce stocks rally after Healey appointment<\/a><\/p>\n Erginbilgic said he had \u201cconfidence\u201d that targets on profit would be reached across defence, civil aerospace and power systems.\u00a0<\/p>\n Rolls-Royce\u2019s defence hopes<\/p>\n The company is also \u00a31.4bn through a \u00a32.5bn share buyback<\/a> programme for the year, which will then run on until 2028.<\/p>\n Emily Sawicz, industrials senior analyst at the accountancy RSM UK, said there were \u201cgood news\u201d for Rolls-Royce as all of its divisions had performed \u201cstrongly\u201d.\u00a0<\/p>\n \u201cIn defence, Rolls\u2019s development programme has been bolstered by orders from several NATO members including the UK and Canada,\u201d Sawicz said.\u00a0<\/p>\n