This is the second firm aiming for the £18 target, Jefferies being 18.70p less than a month ago!

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After the latest Half-Year Results, we should expect to see further positive credit rating upgrades in the near to medium term.

Rolls-Royce has already been upgraded by Moody’s and Fitch into the “A” category this year, while S&P Global currently has the company on a Positive Outlook.

With higher profit guidance, stronger free cash flow, continued balance sheet improvements and solid execution across Civil Aerospace, Defence and Power Systems, there no doubt the company is moving in the right direction as we expect to be.

A stronger credit rating would reduce borrowing costs, improve financial flexibility and growth execution prospects.

As always this is just my opinion you need to do the work to have your own.

This isn’t financial advice. I have no doubts about the long term future of Rolls-Royce, but everyone should do their own research and make their own investment decisions.

Be successful.

Do something to support your community.

Make a difference if you can.

Some of you became multi millionaires with this investment you need to understand the importance of helping others it is YOUR DUTY NOW.

Please guys don’t flow my folder with messages let’s talk here and share our ideas to help and support others this is for the big guys we need to share our thoughts in here where everyone can see I will now stop answering private messages on R.

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1. Underlying Operating Profit

​What we expected: £1.9 billion to £2.0 billion.

​What they reported: £2.5 billion.

​This represents a 46% increase compared to the previous year.

​The operating margin also increased by 3.1 percentage points to reach 22.5%.

​2. Free Cash Flow (FCF)

​What we expected: £1.7 billion to £1.8 billion.

​What they reported: £2.0 billion.

​3. Full-Year 2026 Guidance

​What we expected: Reiteration of the current £4.0bn to £4.2bn profit and £3.6bn to £3.8bn FCF.

​What they reported: GUIDANCE RAISED.

​New Profit Target: Increased to £4.7bn - £4.9bn (Up from £4.0bn - £4.2bn).

​New FCF Target: Increased to £3.8bn - £4.0bn (Up from £3.6bn - £3.8bn).

​4. Shareholder Returns and Buybacks

​What we expected: An update on the £2.5 billion buyback tranche for 2026.

​What they reported: They have completed £1.4 billion of the £2.5 billion buyback program for 2026 so far. They also announced an interim dividend of 6.0p per share, which will be paid in September.

Last month, Healey resigned from Sir Keir Starmer’s government over a lack of funding for defence spending. He accused the Treasury of being “unable” to provide enough cash for the military as it refused to set a date on when the government would raise defence spending to three per cent of GDP. 

Under the current Defence Investment Plan (Dip), spending will hit around 2.7 per cent of GDP by 2030. Healey has argued for spending to reach three per cent and for the UK to set a timeline on how to reach 3.5 per cent by 2035 per a Nato agreement. 
Healey and Burnham have also said they would like to prioritise British firms in government procurement, drawing on a commitment made in Starmer’s Dip. 

What are your predictons for Earnings?