Rolls-Royce PLC continues to demonstrate solid performance across all three of its operating segments and recently raised its guidance for operating profit and free cash flow in 2025. We expect that overall group statutory revenue will rise by about 9.5%-10.5% in 2025, with S&P-Global Ratings-adjusted EBITDA margins exceeding 18% and free operating cash flow rising to about £3 billion at the same time. We expect that Rolls-Royce will continue to operate with a net cash position in the near term, and, despite ongoing shareholder returns, the balance sheet will remain strong and a spike in leverage is unlikely. We therefore raised our long-term issuer credit rating on Rolls-Royce, as well as the issue rating on senior unsecured debt, to 'BBB+'
