Rolls-Royce Power Systems Reports Strong Growth in H1 2025
Increased sales at Rolls-Royce: Exploring the reasons behind the engine manufacturer in Friedrichshafen's success
Rolls-Royce Power Systems, headquartered in Friedrichshafen, has announced positive business figures for the first half of 2025. The company reported an increase of 20 percent in turnover, generating 2.4 billion euros, and a surge of 89 percent in adjusted operating profit, reaching around 370 million euros.
The growth was primarily driven by high demand in the energy sector, particularly for data centre power systems, and continued momentum in government contracts. Key drivers included a large order for a battery energy storage system (BESS) from a Lithuanian energy provider and extended contracts with clients like Italian yacht builder Sanlorenzo for mtu propulsion and automation systems.
Jörg Stratmann, CEO of Rolls-Royce Power Systems, stated that the company is investing in the future. Investments are being made in the modernization of production facilities, including in Friedrichshafen, and hundreds of new employees are being sought by Rolls-Royce Power Systems in Germany and internationally.
Orders from government agencies included both military and civilian applications. The plants of Rolls-Royce Power Systems were fully utilized in the first half of 2025, according to the company's report.
For Rolls-Royce Power Systems, the strong growth in H1 2025 is part of a broader trend for the company. Despite challenges like supply chain disruptions, inflation, and tariffs, Rolls-Royce overall achieved a 50 percent increase in underlying operating profit (to £1.7 billion) and a substantial free cash flow increase (£1.6 billion) in H1 2025.
This has been attributed to strategic sustainability investments and operational transformation, including diversification through their Small Modular Reactor (SMR) nuclear energy programme, expected to start positive cash flow post-2025. The company has also achieved 100 percent sustainable aviation fuel compatibility across all engine models and made cost savings of £850 million since 2022, funding R&D and decarbonization projects.
Looking ahead, Rolls-Royce Power Systems' future investment plans focus on continued expansion of production sites in Germany and the US, R&D on new engine platforms and future technologies, strategic investments in sustainability, clean energy solutions like SMRs and battery storage, and ongoing operational transformation to sustain profitability and resilience across global supply chains.
In conclusion, Rolls-Royce Power Systems' H1 2025 growth reflects a combination of strong market demand for power products, strategic sustainability investments, diversification, and focused operational excellence with clear plans to expand advanced technology and production capacity in the coming years.
The strong performance in H1 2025 for Rolls-Royce Power Systems is not limited to the power sector alone, as it also saw significant growth in the finance industry, with a 50 percent increase in underlying operating profit. Furthermore, the company's investment strategy extends beyond production facilities, as they are also focusing on research and development (R&D) in new engine platforms, future technologies, and strategic investments in sustainability and clean energy solutions like Small Modular Reactors (SMRs) and battery storage, all aimed at sustaining profitability and resilience in the business and finance sectors.