Rolls-Royce mulls narrowbody engine; to exit electric flight

Rolls-Royce set out a new growth strategy today along with ambitious medium-term goals in a capital markets day. The engine manufacturer has set mid-term targets that would deliver record performance, with operating profits targeting between £2.5bn-£2.8bn, with an operating margin of 13-15% – a significant upsize from 2023 current full year guidance of £1.2-£1.4bn underlying operating profit and a 9.7% operating margin. Rolls-Royce Civil Aerospace unit has the biggest step change, improving from a 2.5% operating margin in 2022 to 15-17% over the mid-term. The team is also predicting a return on capital of 16-18% and returning to investment grade