Rolls-Royce expects to ‘fully mitigate’ financial impact of Iran war disruption Proactive uses images sourced from Shutterstock
Rolls-Royce Holdings PLC (LSE:RR.) said it has made a strong start to 2026 and kept its full-year guidance unchanged thanks to progress with its ongoing transformation plan and “self-help” actions.
Ahead of the engine maker’s annual shareholder meeting, chief executive Tufan Erginbilgic said while the war in the Middle East has created uncertainty for the industry, the group is “taking the necessary actions to support our employees, customers, and suppliers”.
“We expect to fully mitigate the current financial impact of the disruption to our business. We continue to monitor the situation for any future direct and indirect impacts and will take the necessary actions to mitigate them.”
The FTSE 100 group reported robust trading across all three divisions in the first quarter, led by Civil Aerospace.
Engine flying hours rose to 115% of 2019 levels in the three months to March, reflecting continued recovery in long-haul travel. Business aviation activity also ran ahead of expectations. Full-year guidance of 115-120% remained in place.
Defence and Power Systems also delivered strong growth. Defence benefited from higher aftermarket demand and increased original equipment deliveries, while Power Systems saw order intake for power generation jump around 50% year-on-year.
A growing order book was highlighted, including widebody aircraft engine deals and contracts in marine and defence.
A net cash position was reported, with the £2.5 billion share buyback programme ongoing.
The company reiterated guidance for underlying operating profit of £4.0 billion-£4.2 billion and free cash flow of £3.6 billion-£3.8 billion for the 2026 financial year.