Rolls-Royce wants to generate more revenue by 2027

Engine maker Rolls-Royce wants to generate more revenue in its day-to-day business in the coming years.

Operating profit is expected to increase to 2.5 to 2.8 billion British pounds (about 2.9 to 3.2 billion euros) by 2027, the company announced in London. Free cash flow should be between £2.8 and £3.1 billion. Shares rose three percent early Tuesday.

For this year, CEO Tufan Erginbilgic expects an operating profit of 1.2 to 1.4 billion pounds and a cash inflow of 0.9 to 1 billion pounds. The manager also hinted that he wanted to return to the narrow-body aircraft business. Rolls-Royce is in a “good position,” he said, according to the statement.

Find potential partners

Erginbilgic is also in ongoing discussions with potential partners after the company announced that it wants to use partnerships to expand its business. “In some cases we are in active discussions,” the CEO told reporters.

In an initial response, UBS analyst Ian Douglas-Pennant described the new targets as “strong”. So he expects that the average estimate from industry experts will increase significantly. Jefferies analyst Chloe Lemarie stressed that free cash flow was above expectations.

In mid-October, the engine maker announced that it would once again cut thousands of jobs. It is the biggest layoff to date under company boss Erginbilgic and affects 2,000 to 2,500 employees.

As Rolls-Royce further announced, the company wants to spin off its electronics business, which makes propulsion systems for aircraft such as air taxis. Erginbilgic said Rolls-Royce needed to make decisions about how to use its resources and the division could provide more value to a “third party”.