Rolls-Royce shares near record after 52% year rise

Shares in Rolls‑Royce Holdings traded at 1,480p on July 7 after gaining 52% over the previous 12 months. The stock rose from a March low of 1,093p to about 1,485p in early July and has cleared a resistance level near 1,420p. The year‑to‑date high of 1,532p stands as the next technical threshold; the price has been supported by the 50‑day moving average.

Rolls‑Royce sells aircraft engines and signs long‑term service contracts, often priced on a Power‑by‑the‑Hour basis that typically runs eight to 15 years. Under that model the company may accept low or negative margins on engine sales in exchange for steady service income. Engine flying hours is a key metric used to assess future service revenues.

Company management said recent disruptions linked to the US‑Iran tensions did not have a material impact on operations. Rolls‑Royce has started a development programme to return to the narrow‑body engine market and is in funding talks with the UK government. If the programme proceeds on schedule, new engines could enter service in late 2029 or in 2030.

The industrial power division supplies backup generators used in data centres and other sectors. The company reported data centre backup capacity rising from 22GW in 2023 to 36GW in 2025 and forecasts average annual growth of about 20% to 2030. Power division revenue was £4.9 billion last year, up from £3.3 billion in 2022, and free cash flow in the division rose to about £700 million.

Rolls‑Royce is developing small modular reactors, compact nuclear plants that typically produce between 10MW and 300MW and can be transported to site for assembly. The company has partnerships in the UK, the Czech Republic and Sweden. Industry estimates cited by the firm put the SMR market above $23 billion by 2035.

Defence contracts contribute to the order book. Recent wins include an order for EJ200 engines for Turkey’s planned fleet of 20 Eurofighter Typhoons and contracts in Australia. European defence spending has increased, with countries such as Italy and France committing to higher budgets, and US officials have urged NATO members to raise expenditure.

Market participants will note upcoming trading updates, contract awards and progress on the narrow‑body engine programme and SMR deployments for further information on revenue and cash flow trends.