Rolls-Royce Power Systems reports increased revenue for 2025

Rolls-Royce Power Systems has reported an adjusted annual revenue of €5.72 billion ($6.75 billion) for 2025, a year-on-year increase of 19%. Return on sales increased to 17.4% (previously 13.1%).

The increase was primarily down to strong demand for energy supply solutions for large data centers and the dynamic defence business.

Company CEO thanked employees for their dedication (Photo: Rolls-Royce)

Adjusted operating profit increased to €995 million ($1.17 billion), an increase over the €662 million reported in 2024.

“Our strategy is working – and our results prove it,” said Dr Jörg Stratmann, CEO of Rolls-Royce Power Systems.

“Over the past three years, we have increased revenue by 50%, more than doubled our return on sales and tripled our profit. We are continuing this momentum: we are growing in a targeted manner in markets that are crucial for energy supply, security and technological sovereignty, and are investing a high three-digit million euro amount worldwide in new capacities, technologies and innovations – more than ever before.”

Stratmann further added how the company’s success has been underwritten by its employees. “Growth is driven by expertise, commitment and dedication – day after day, at our locations around the world. I would therefore like to express my special thanks to our employees: they are driving this transformation and making our success possible in the first place.”

According to RRPS, five ‘initiatives’ are driving the energy transformation. These are energy generation, defence, marine, battery storage and service. These determine where the company will invest its R&D, through to launching equipment to support these areas.

For example, the data center business grew significantly in 2025. Rolls-Royce supplied systems needed to stabilise grids, cushion peak loads and take over energy delivery should there be a power supply interruption.

Construction work at the Friedrichshafen HQ of RRPS (Photo: Rolls-Royce)

Defence is also a major customer. In 2025, the company received a major order for more than 300 engines for the Leopard 2 tank.

Rolls-Royce Power Systems is investing a high three-digit million amount worldwide in the modernisation and expansion of its plants. The company is responding to rising demand and aligning production with future volumes. Capacities are being expanded, plants modernised and the industrial base strategically developed at global locations.

At the headquarters in Friedrichshafen, Germany, Plant 1 and Plant 2 are being reorganised. In addition, a new plant is being built, where the Series 4000 will also be assembled from 2028 onwards.

In the US, the company is expanding its site in Aiken, SC, and increasing the production area in Mankato, MN, by more than 23,000 square metres.