Rolls-Royce is confident it will meet its guidance of £2.7bn-2.9bn of underlying profit for 2025 despite tariffs, the company said in a trading update on May 1, 2025. The company expects to meet its guidance of £2.7bn-£2.9bn of free cash flow for the year.
“The recently announced global tariff increases have created a degree of uncertainty for the industry,” said Rolls-Royce CEO Tufan Erginbilgic. “We expect to offset the impact of announced tariffs on our business through the mitigating actions we are taking. We are closely monitoring the potential indirect impact on economic growth and inflation, and will continue to take the necessary actions.”
The company said it had a strong start the year with “all divisions performing well” despite tariffs and supply chain constraints.
Erginbilgic continued: “Good progress on our transformation and the actions we are taking give us confidence in our guidance for 2025.”
The new HPT blade for Rolls-Royce's Trent 1000 engine, which is expected to double the engine's time on wing, is expected in “the coming weeks”. Additionally, the company said it is on track to deliver a further 30% time on wing improvement for the Trent 1000 as well as the Trent 7000 engines by the end of the year. The Trent XWB-84 EP engine variant, which powers the A350-900, was certified last month.
During the first quarter, the engine manufacturer's long term service agreement (LTSA) large engine flying hours grew to 110% of 2019 levels, with strong aftermarket revenue growth driven by higher shop visit volumes.
As of the end of March, the company completed £138 million of its £1bn share buyback programme.