Rolls-Royce Holdings reported its strongest order book position in over a decade on Thursday, announcing that civil aerospace orders had reached £28 billion at the end of the first quarter of 2026 — a record figure that reflects the ongoing recovery of long-haul aviation following the disruption of the pandemic years. Chief executive Tufan Erginbilgiç, who has overseen a dramatic operational turnaround at the Derby-based engineering group since taking the helm in January 2023, described the results as evidence that the company’s transformation programme was “delivering sustained and structural improvement.”
The civil aerospace division, which manufactures large aircraft engines for wide-body jets including the Airbus A350 and Boeing 787, benefited from a surge in orders from Middle Eastern and Asian carriers expanding their long-haul fleets to meet resurgent demand for international travel. Emirates, Singapore Airlines and Cathay Pacific all placed significant engine orders in the first quarter, with deliveries scheduled to begin in 2027 and 2028.
The defence division also performed strongly, with revenues rising 18% year-on-year as NATO member governments accelerated spending on military aviation and submarine propulsion systems in response to heightened geopolitical tensions. Rolls-Royce’s MTU Aero Engines subsidiary in Germany saw particularly strong demand for military turbofan engines, while the UK Submarines business continued to benefit from the long-term AUKUS programme that will see the company supply nuclear propulsion systems for Australian submarines.
The company’s small modular reactor programme, in which Rolls-Royce is investing heavily as a long-term growth opportunity, received a further boost when the government confirmed that planning applications for the first SMR sites would be fast-tracked under new energy security legislation. Rolls-Royce SMR, a subsidiary in which the parent company holds a majority stake alongside BNF Resources and the US Export-Import Bank, aims to have its first reactor operational by 2031.
Shares in Rolls-Royce rose 5.8% following the results announcement, extending a remarkable recovery from the low of 65p reached in October 2022 to trade at 712p — a tenfold increase that has rewarded patient investors handsomely and made Erginbilgiç one of the most celebrated corporate turnaround stories in recent British business history.
— Sarah Mitchell, London Capital Post
