Rolls-Royce shrugs off tariffs impact with ‘strong’ trading

Derby manufacturing giant Rolls-Royce says it has enjoyed a “strong” start to the year – despite the impact of Donald Trump’s trade tariffs.

This morning (May 1), in a trading update, Rolls said that its 2025 guidance of £2.7bn-£2.9bn of underlying operating profit “remains unchanged”.

The company also said that demand for its products and services also “remains strong across the group”.

Chief executive Tufan Erginbilgic said: “Our transformation of Rolls-Royce is progressing strongly and we continue to expand the earnings and cash potential of the business. We are creating a more resilient and agile Rolls-Royce that is better equipped to respond to changes in the external environment. As a result, we have had a strong start to the year.

“The recently announced global tariff increases have created a degree of uncertainty for the industry. 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. Good progress on our transformation and the actions we are taking give us confidence in our guidance for 2025 of £2.7bn-£2.9bn of underlying operating profit and £2.7bn-£2.9bn of free cash flow.”

In March, Rolls-Royce said it could shift some of its engine-making capabilities to the US to mitigate against the US trade tariffs.