Rolls-Royce Power Systems first-half sales up 20%

Rolls-Royce’s Power Systems division, which includes its mtu product and solutions brand, continued to see profitable growth in the first half of 2025. Adjusted for the sale of the lower power engine business last year, revenue rose by 20% to EUR 2.4 bn* (£2.0 bn*), while adjusted operating profit increased by 89% to EUR 371 million (£313 million), the company reported.

Rolls-Royce’s Power Systems division is investing in production plants and equipment to keep pace with growth. (Photo: Rolls-Royce Power Systems)

The energy supply and governmental business continued to be growth drivers, said Rolls-Royce. In addition to significant orders from data center operators, the first half of the year included the division’s largest order to date for the delivery of a battery energy storage system (BESS) for a Lithuanian energy supplier, as well as the extension of the framework agreement with Italian yacht manufacturer Sanlorenzo for mtu propulsion, exhaust aftertreatment and automation systems for superyachts.

The order backlog for new business stands at a record level, the company added, with OE order coverage of 100% for the remainder of 2025 and 43% for 2026. Order intake was EUR 3.5 bn (£2.9 bn) with a book-to-bill ratio of 1.4x. Rolls-Royce said this represents a 32% increase over the prior period, driven by strong power generation demand where order intake rose 68%.

The improved result and higher liquidity will enable the company to continue investing in its growth and future in the global market. It is currently investing heavily in the development of a new mtu engine platform, which will be available from 2028. In addition, engines for military land vehicles will be further developed for higher power density.

Rolls-Royce Power Systems is also investing in production plants and equipment to keep pace with growth, including:

• In the U.S., approximately $100 million is being invested in the expansion of the Aiken engine plant in South Carolina and the expansion of the energy systems plant in Mankato, Minn.
• In China, the first engine in the mtu 4000 series for the oil and gas industry rolled off the production line at the MTU Yuchai Power joint venture, while the first engine in the new generation of the mtu 2000 series was built in Suzhou, China.
• In mid-2026, part of the large-scale modernization of the production facilities in Friedrichshafen, Germany, will be completed with the commissioning of a new assembly line for the mtu Series 4000, with other parts of the plant to be continuously modernized to adapt to rising sales figures and to enhance production efficiency.

“Our strong performance in the first half of the year shows that we are on the right track,” said Dr. Joerg Stratmann, CEO Rolls-Royce Power Systems, of the company’s performance. “With a clear strategic focus, high-quality products and strong innovative capabilities, we are growing profitably and faster than the market – in a challenging global environment.

“At the same time, we are investing more than ever before in new engine platforms, forward-looking technologies and the expansion of our plants,” he continued. “This will enable us to lay the foundations for sustainable growth and strengthen our technological leadership.”

* Figures in € are informative. Figures in £ are binding.