Rolls-Royce reports strong defence start as orders flow

Rolls-Royce has reported a strong start to 2026 in its defence business, with more than a 20 per cent year-on-year increase in original equipment deliveries and a series of significant programme milestones across engine and marine gas turbine programmes, the company confirmed at its annual general meeting.

Chief Executive Tufan Erginbilgic said the company had had “a strong start to the year driven by our transformation and self-help” and that its diversified portfolio of three high performing businesses left it “better equipped to respond to changes in the external environment.” Defence was identified as one of the most resilient parts of the business, with a highly attractive growth outlook.

Among the headline defence developments, Rolls-Royce confirmed its AE 3007 engine powered the first flight of the US Navy’s MQ-25 autonomous refuelling aircraft in April, describing the programme as demonstrating the company’s unique positioning in next-generation autonomous aircraft propulsion. The MQ-25 Stingray is the US Navy’s first carrier-based uncrewed aircraft and is designed to extend the operational range of the carrier air wing by taking over the aerial refuelling mission from crewed F/A-18 Super Hornets.

In March, Rolls-Royce received an order as lead partner in the EUROJET consortium to provide EJ200 engines powering a new fleet of 20 Eurofighter Typhoons for Turkey, adding to the substantial existing EJ200 production programme which also powers Typhoons operated by the UK, Germany, Spain, Italy, Saudi Arabia, Austria, Oman and Kuwait.

The company’s MT30 marine gas turbine was selected in April to power up to 11 of the Australian Navy’s new fleet of general-purpose frigates, described as helping to enhance undersea warfare and air defence capabilities. The MT30 is already in service as the propulsion system for the Royal Navy’s Type 26 frigates and the US Navy’s Freedom-class littoral combat ships, and the Australian selection extends the engine’s growing international footprint.

Engine testing for the US Army’s MV-75 programme, which will power the Sikorsky-Boeing SB>1 Defiant X competing for the Future Long-Range Assault Aircraft requirement, is progressing well with endurance and altitude testing on track for later this year, keeping pace with an accelerated production timeline. Rolls-Royce also confirmed it collaborated closely with Boeing in March on the next stages of the critical design review for the US Air Force’s B-52 re-engining programme, which will see the Cold War-era bomber fleet fitted with the company’s F-130 engine.

In Power Systems, Rolls-Royce announced it would supply 350 upgraded mtu Series 199 engines on new Boxer armoured wheeled vehicles for the German Armed Forces and other international customers, and received an order for around 200 compact mtu PowerPacks for the Bundeswehr’s Puma armoured personnel carrier. The company also signed a memorandum of understanding with Polska Grupa Zbrojeniowa, Poland’s largest defence technology group, to provide services to mtu engines used by the Polish armed forces.

Rolls-Royce maintained its full year guidance of £4.0 billion to £4.2 billion of underlying operating profit and £3.6 billion to £3.8 billion of free cash flow for 2026, saying the Middle East conflict’s financial impact on the business was expected to be fully mitigated.