Rolls-Royce’s transformation programme delivered a strong first half 2024 performance

UK-based global major power and propulsion systems group Rolls-Royce has reported a strong performance during the first half of this year (1H24). The group credited this performance to the success of its transformation programme and strategic initiatives. The group reported an underlying operating profit of £1.1-billion, which was a 74% increase, year-on-year (y-o-y). The operating margin in 1H24 was 14%, which was a 4.4 percentage points (ppts) increase over that recorded in 1H23. The group also reported a 13.8% return on capital, which was a 4.8 ppts increase, y-o-y. Free cash flow in 1H24 was £1.2-billion, a 225% increase over the £0.4-billion achieved in 1H23. Group net debt was reduced to £0.8-billion (from £1.95-billion on December 31, 2023), a reduction driven by statutory net cash flow from operating activities (which came to £1.7-billion).