If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our inhouse developed data analytics platform. In November 2023, I covered Rolls-Royce and attached a buy rating to the stock. That buy rating has performed extremely well with a 135% return compared to 25.7% for the S&P 500. Rolls-Royce is just one of several companies that I covered with a Dh ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Rolls-Royce Holdings PLC (RYCEY) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question. Rolls-Royce Holdings PLC is one of 46 companies in the Aerospace group. The Aerospace group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank ...

Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Is Rolls-Royce Holdings PLC (RYCEY) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question. Rolls-Royce Holdings PLC is one of 46 companies in the Aerospace group. The Aerospace group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different se ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Rolls-Royce Holdings PLC (RYCEY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question. Rolls-Royce Holdings PLC is one of 46 companies in the Aero ...

Michael Derrer Fuchs After a 132.5% price rise over the past year, aero-engines manufacturer Rolls-Royce (OTCPK:RYCEY) (OTCPK:RYCEF) might look like a stock to proceed with caution on, especially as uncertainty persists in key global economies and the stock markets are getting wobbly. But it isn't. Price Chart (Source: Seeking Alpha) Consider this. Just before the pandemic, at the start of 2020, it was trading at 45% higher levels to where it's at now. However, the impact to its big civil aerospace segment, ...

Peter Hansen RYCEY Delivers Robust Profitable Growth, With Market Trends Signaling Bright Prospects We previously covered Rolls-Royce Holdings (OTCPK:RYCEY) (OTCPK:RYCEF) in May 2024, discussing the successful reversal of its fortunes after facing extreme challenges during the COVID-19 pandemic, thanks to its highly strategic "Power by the Hour" business model and recovering air travel trends. With the management guiding excellent growth through 2027 while reporting improving balance sheet health and growin ...

Financial Performance and Key Metrics Changes - Operating profit increased to £1.1 billion, a 74% year-on-year improvement, with an operating margin of 14%, up 4.4 percentage points from last year [6][19] - Free cash flow rose to £1.2 billion, compared to £0.4 billion in the first half of 2023, driven by higher operating profit and continued LTSA balance growth [7][20] - Return on capital improved to 13.8%, indicating significant value creation [8][20] Business Line Data and Key Metrics Changes Civil Aerospace - Operating profit grew to £740 million, an 85% increase year-on-year, with operating margins rising to 18%, a 5.6% increase [20][21] - Revenues increased by 27% to £4.1 billion, driven by higher shop visits and OE deliveries [19][21] - Large engine OE deliveries grew by 26% to 236, with business aviation deliveries reaching 116 [21] Defense - Operating profit increased to £345 million, a 34% year-on-year growth, with revenue growing by 18% to £2.2 billion [24][25] - Order intake for the period was £1.7 billion, with a book-to-bill ratio of 0.8x and an order backlog of £8.5 billion [24] Power Systems - Operating profit grew to £189 million, a 56% increase, with operating margins rising to 10.3% [26][27] - Order intake was £2.4 billion, with a book-to-bill ratio of 1.3x, indicating strong demand particularly in power generation [27] Market Data and Key Metrics Changes - The company reported a significant year-on-year improvement across all divisions, with strong growth in aftermarket services and commercial optimization [5][19] - The supply chain challenges are being actively managed, with a focus on 15 suppliers requiring intervention [9] Company Strategy and Development Direction - The company is focused on building a sustainably distinctive Rolls-Royce that is high-performing, competitive, resilient, and growing with improving profitability and cash flow [4][5] - Strategic initiatives include commercial optimization, cost efficiencies, and operational excellence, aimed at improving customer service and financial performance [4][5] - The company plans to reinstate shareholder distributions for full-year 2024 results, based on a 30% payout ratio of underlying profit after tax [5][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising guidance for 2024, expecting operating profit of £2.1 billion to £2.3 billion and free cash flow of £2.1 billion to £2.2 billion [36][37] - The supply chain is expected to remain challenging for another 18 to 24 months, but the benefits of the transformation program will become more visible as it stabilizes [39] Other Important Information - The company has made significant progress in reducing net debt to £822 million, the lowest position in over five years [20][32] - The organization has undergone a redesign to become simpler and more agile, with a focus on efficiency and simplification [14] Q&A Session Summary Question: Medium-term guidance and targets - Management acknowledged progress but emphasized that targets are milestones and will not be raised formally until strategic progress is consistently achieved [42][44] Question: Power Systems growth - Management clarified that while growth was 6%, power generation saw a 15% increase, with data center demand expected to accelerate [46][47] Question: Working capital expectations - Management indicated that working capital initiatives are ongoing, with expectations for a release in the second half of the year [48][49] Question: Capital structure and dividends - Management stated that a strong balance sheet is a priority, and while dividends are being reinstated, the focus remains on maintaining a resilient capital structure [54][60] Question: Tax losses and deferred tax - Management confirmed that they are closely monitoring deferred tax balances and will consider recognizing them as earnings potential expands [59]

A Rolls-Royce Trent 700 engine for the Airbus A330 stands in a workshop of N3 Engine Overhaul Services GmbH. The company is a joint venture between Lufthansa Technik AG and Rolls-Royce for the maintenance of aircraft engines. Shares of Rolls-Royce jumped more than 11% to hit an all-time high on Thursday after the company reinstated its dividend and raised its profit forecast on the back of strong first-half results. Shares had pared gains slightly to trade 8.8% higher by 8:24 am London time. This is a break ...