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Rolls-Royce Holdings PLC

Rolls-Royce Holdings PLC

RYCEY
$18.36USD↓-0.70%-0.13 today

MARKET CAP

84.3B

P/E (TTM)

54.2x

FWD P/E

20.1x

DAY RANGE

$18 – $18

52W RANGE

$13
$20

AI Summary

Stalk
StalkMedium

RYCEY remains in a Stage 2 advancing regime with a persistent higher-highs/higher-lows sequence and support from rising intermediate moving averages. The recent pullback has pushed price below the short-term EMAs into the 50-day SMA, softening immediate entry conditions. Near-term timing is inconclusive with price holding around key support. Execution is deferred, stalking entries on clear absorption into the EMA/50 SMA zone.

  • ↑Revenue grew 14% YoY to GBP20B; operating profit up ~40% to GBP3.5B
  • ↑Free cash flow reached GBP3.3B, up GBP800M YoY, funding capital returns
  • ↓Supply chain disruptions to persist 18–24 months, risking deliveries
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Rolls-Royce Holdings PLC (OTC: RYCEY) is a leading player in the aerospace and defense sectors, known for its advanced power systems and high-performance engines tailored for civil and defense applications. With a focus on operational efficiency and sustainability, the company is strategically positioned to benefit from the rising demand for robust aerospace solutions and government backing for defense initiatives. Its transformation agenda aims to leverage technological advancements and cost efficiencies, unlocking significant value in a rapidly evolving market landscape.

Bull says

  • ↑Revenue grew 14% YoY to GBP20B; operating profit up ~40% to GBP3.5B
  • ↑Free cash flow reached GBP3.3B, up GBP800M YoY, funding capital returns
  • ↑GBP7–9B multiyear share buyback underscores management’s confidence
  • ↑GBP17.4B order backlog ensures ~3 years of revenue visibility
  • ↑UltraFan tech and AI investments drive future efficiency gains
  • ↑Rising global defense spending amid geopolitical tensions boosts contracts

Bear says

  • ↓Supply chain disruptions to persist 18–24 months, risking deliveries
  • ↓Net debt at GBP1.9B, elevated leverage risks refinancing in rising-rate climate
  • ↓Competitive pricing pressure may compress Power Systems margins
  • ↓Revenue reliant on civil aerospace recovery; travel demand volatility threatens sales
  • ↓Weak earnings yield and liquidity factors signal valuation headwinds
  • ↓High reliance on defense budgets risks underperformance if spending slows

Investment themes with RYCEY

European Defense↓ -0.59%

Defense contractors based in Europe

RYCEY · MRO.L · AM.PA

Earnings Call · Q4 2025 · Mgmt. Guidance

Updated 05-09-2026neutral

Transcript signals

Bull points

  • Group revenues grew by 14% to GBP 20 billion with good end market growth, especially across Civil and Power Systems.
  • Group operating profit grew by around 40% to GBP 3.5 billion, driven by our strategic initiatives, including commercial optimization.
  • Operating margin grew by 3.2 percentage points to 17.3%.

Bear points

  • we expected the supply chain to remain challenging through 2026. The industry continues to see product cost inflation. Availability for some parts remains constrained, but overall, it is improving.
  • They were an outflow of just under GBP 300 million, around GBP 120 million higher than in 2024 as we continue to successfully renegotiate and trade through onerous contracts.
  • It increased to GBP 555 million, around GBP 170 million higher than in '24, reflecting increased profits.
Read full transcript analysis ›