Aerospace News – Early May 2025
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Rolls-Royce’s share price closed 2.3% up on Thursday (May 8) to 783.4p following the announcement of a new UK-US trade deal that brings benefits to the aerospace company.
The leap saw the share price climb back to levels last seen before Trump sparked the trade wars.
US Commerce Secretary Howard Lutnick confirmed that Rolls-Royce engines and aircraft parts would be exempt from tariffs, while President Donald Trump added that tariffs on Rolls-Royce products would fall from 25% to 10%. https://www.thebusinessdesk.com/eastmidlands/news/2097780-rolls-royce-shares-jump-after-uk-us-trade-deal-announcement
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”. https://www.thebusinessdesk.com/eastmidlands/news/2097548-rolls-royce-shrugs-off-tariff-impacts-with-strong-trading
Rolls-Royce awarded support agreement for the EJ200 engine that powers the RAF’s Typhoon fleet.
Rolls-Royce has been awarded a five-year support contract with the UK Ministry of Defence for the maintenance and service of the EJ200 engine that powers the Royal Air Force’s Typhoon aircraft.
The Typhoon Engine Support Solution (TESS) will see Rolls-Royce continue to provide maintenance and repair to 130 EJ200 engines, supporting approximately 200 direct jobs in the process. The TESS contract will build resilience through the UK based supply chain supporting up to 2,400 jobs across the UK that are essential to harnessing the UK’s combat air expertise. TESS will sustain vital skills to enable the Royal Air Force to deliver air capabilities today and bridge to future capabilities like the Global Combat Air Programme (GCAP).
A total of 521 aircraft orders were placed in the first quarter—representing a 73% increase compared to Q1 2024—as demand rises for both single-aisle and wide-body aircraft, according to ADS.
The trade association highlighted that aircraft deliveries were also up 20% in the first quarter of 2025 compared to the same period in 2024.
The figures – which run until 31 March, two days before the US Administration’s announcement of tariff increases on US imports – show further that the industry’s backlog of aircraft orders has reached a new record high, standing at 15,954 aircraft at the end of March—1% higher than Q1 2024. This backlog is estimated to be worth up to £254 billion to the UK economy at current production rates, underscoring the long-term value of the aerospace sector and its extensive UK supply chain.
Aircraft manufacturer, Airbus, reported improved revenues, although earnings before interest and tax (EBIT) fell during its first quarter period, ended March 31, 2025.
Consolidated figures for the reporting period showed sales rose 6% to €13.542bn, while EBIT was €473, compared with €609m the previous year. Net income was €793m, a 33% increase, while free cash flow improved from a €1.799bn deficit in 2023 to a €296m deficit for 2024.
Net cash stood at €10.966bn, against €11.753bn a year ago. The total number of employees rose by 1% to 157,894 staff. https://www.thebusinessdesk.com/northwest/news/2151471-airbus-remains-confident-after-first-quarter-results-although-tariffs-add-%e2%80%98complexity%e2%80%99/
