Rolls-Royce Power Systems reports record FY2024 results

Rolls-Royce Power Systems reported that its underlying revenue exceeded € 5 billion for the first time in fiscal year 2024, climbing 11% vs. the previous year to € 5.05 billion (£ 4.27 billion). Adjusted operating profit jumped 40% to € 662 million (£ 560 million), while the return on sales rose to 13.1% compared to 10.4% in 2023.

Rolls-Royce Power Systems will continue to invest in new product development in 2025, including a new mtu engine platform that it said offers over 20% more power in the same installation space as the current model. (Photo: Rolls-Royce Power Systems)

Dr Joerg Stratmann, CEO, Rolls-Royce Power Systems, attributed these record figures to a “clear strategy focusing on energy supply, governmental business, marine, battery storage and service,” as well as efficiency enhancement programs.

“We are in a strong position in our markets around the world,” he stated. “We have increased our market share in mtu products and see further growth. Some of our end markets are growing significantly, decoupled from the general economic trend. This and our order intake of € 6 billion euros make us very confident for 2025.”

The largest increase in sales was recorded by the backup power systems business, which Rolls-Royce Power Systems said grew by 25% overall and by as much as 46% for backup power systems for data centers. This growth in power generation, along with cost efficiency benefits, contributed to the company’s higher operating profit. Also contributing was the continuing demand for products for land and naval forces, which resulted in a 17% sales growth in sales in the governmental business sector.

Following record investments in 2024, Rolls-Royce Power Systems said it will continue to invest in new product development and the expansion of production capacities, including the development of a new mtu engine platform, expected to be ready for series production in the medium term; investments in a new building for the assembly of gen-sets in Mankato, Minn.; and the expansion of its engine plant in Aiken, S.C.

“This will enable us to meet our strong business in securing the energy supply for data centers and the requirements of our major customers by producing in the heart of the market,” said Stratman.

Other major investments are planned for the ongoing optimization and expansion of production capacity in Friedrichshafen, Germany.