Rolls Royce Earnings: Strong Set of Results, Guidance Update

Narrow-moat Rolls-Royce upgrades full-year guidance for operating profit and cash flow, on the back of a strong set of results for first-half 2023, with a historical record-high group profit margin driven by civil aerospace performance. Although engine flying hours are still at 80% of 2019 levels, civil aerospace operating margin increased at 12.4% versus a negative 3.4% in first-half 2022 on the back of higher percentage of spare parts sales, cost efficiencies, increased time on wing, and price optimization.