Rolls-Royce has increased its full-year operating profit guidance to between £3.1bn and £3.2bn, following a "strong first-half performance".

In the six months to 30 June, the engineering firm recorded an operating profit jump of 50% to £1.7bn, alongside a margin of 19.1%, which it said reflected its strategic initiatives impact and performance management.

In addition, its free cash flow in this period totalled £1.6bn, stating that this was driven by higher operating profit and a continued long-term sales agreement balance growth.

Furthermore, its revenue increased by 11% to £9.05bn, while its profit before tax jumped by 63% to almost £1.7bn.

Chief executive at Rolls-Royce, Tufan Erginbilgic, said that the firm’s latest results demonstrate that its "multi-year transformation continues to deliver".

He stated: "Our actions led to strong first half year results, despite the challenges of the supply chain and tariffs. We are continuing to expand the earnings and cash potential of Rolls-Royce.

"We delivered continued strong operational and strategic progress in the first half of 2025. In civil aerospace, we achieved significant time on wing milestones and delivered improved aftermarket profitability.

"In power systems, where we now see further growth potential, we continued to capture profitable growth across data centres and governmental. In addition, Rolls-Royce SMR was selected as the sole provider of the UK's first small modular reactor programme. We expect Rolls-Royce SMR to be profitable and free cash flow positive by 2030."

In its outlook, Rolls-Royce increased its operating profit from between £2.7bn and £2.9bn to between £3.1bn and £3.2bn.

Furthermore, its free cash guidance is now set to reach between £3bn and £3.1bn.

It added that the latest results build on its "further conviction" for its mid-term targets, which includes an operating profit of between £3.6bn and £3.9bn and a free cash flow of between £4.2bn and £4.5bn.

Following the update, shares in Rolls-Royce increased by almost 8%

Investment director at AJ Bell, Russ Mould, stated that the business has built "an engine to drive growth year-after-year".

He concluded: "Having already delivered a stellar turnaround, Rolls-Royce is showing no signs of taking its foot off the pedal.

"Shareholders are absolutely delighted as upgraded earnings guidance helps to rev the share price even higher. Rolls-Royce’s share price has now increased by 1,442% since October 2022, meaning investors who held that entire time have made more than 15 times their money.

"Rolls-Royce is the poster child for what’s capable on the stock market. While Chancellor Rachel Reeves is keen for more people to invest and make a better return than cash, even she wouldn’t expect investors to always make Rolls-Royce kind of returns. But the gains from holding Rolls-Royce show that big returns aren’t simply a fantasy on the UK market. It’s also a welcome reminder that Britain has plenty of business champions, with Rolls-Royce the cream of the crop."

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