Rolls-Royce Power Systems achieves record result
Posted on February 28, 2025
- Sales of mtu products and solutions exceed EUR 5 bn for the first time
- Emergency power supply for data centers and governmental business are growth drivers
- Incoming orders again significantly higher than in the previous year at EUR 6 bn
- Significant investments in product development and production capacities
Rolls-Royce Power Systems achieved record sales, profit and return on sales in the financial year 2024. Underlying revenue climbed by 11% to EUR 5.05 bn* (£ 4.27 bn), exceeding the EUR 5 bn mark for the first time. At EUR 662 million (£ 560 million), adjusted operating profit was 40% higher than in the previous year. The return on sales rose to 13.1% (2023: 10.4 per cent).
Dr Joerg Stratmann, CEO Rolls-Royce Power Systems, said: "These record figures are the result of our clear strategy focusing on energy supply, governmental business, marine, battery storage and service. We are in a strong position in our markets around the world. We have increased our market share in mtu products and see further growth potential. 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." In addition, efficiency enhancement programs made a lasting contribution to improving earnings
The highest order intake was recorded for mtu solutions for energy supply and for the government business. The largest increase in sales was recorded by the backup power systems business, which grew by 25% overall and by as much as 46% for backup power systems for data centers. The continuing demand for products for land and naval forces led to strong sales growth of 17% in the governmental business
The higher operating profit reflects the growth in power generation, driven by data centers, where the business model was optimized. Higher operating profit was also supported by cost efficiency benefits.
Following record investments in 2024, Rolls-Royce Power Systems is continuing to invest in the development of new products and the expansion of production capacities. This also includes the development of a new mtu engine platform, which will be ready for series production in the medium term. Joerg Stratmann said: "With over 20 per cent more power in the same installation space compared to a current model of the same size, we will set new standards in our industry.”
Substantial investments are being made this year in a new building for the assembly of gensets in Mankato and in the expansion of the engine plant in Aiken (both in North America).
Stratmann said: "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." Other major investments are being channeled into the ongoing optimization and expansion of production capacity in Friedrichshafen.
* Figures in € informative, converted at constant exchange rate (exchange rate factor 2024: 1.1812, exchange rate factor 2023: 1.1493). The figures in British pounds are binding. The press release on the annual results of the Rolls-Royce plc Group as a whole and further information on the Power Systems division can be found at www.rolls-royce.com
About Rolls-Royce Holdings plc
- Rolls-Royce develops and delivers complex power and propulsion solutions for safety-critical applications in the air, at sea and on land. Our products and service packages enable our customers to connect people, societies, cultures and economies together; they meet the growing need for power generation across multiple industries; and enable governments to equip their armed forces with the power to protect.
- Rolls-Royce has a presence in 48 countries and customers in more than 150, comprising over 250 commercial large aero engine customers, 160 armed forces and navies and approximately 40,000 active Power Systems customers. We are committed to becoming a net zero company by 2050 and we support our customers to do the same.
- Annual underlying revenue was £15.4bn in 2023, underlying operating profit was £1.6bn and free cash flow £1.3bn.
- Rolls-Royce Holdings plc is publicly traded company (LSE: RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69).
- Rolls-Royce Power Systems is headquartered in Friedrichshafen in southern Germany and employs more than 10,500 people. The product portfolio includes mtu-brand high-speed engines and propulsion systems for ships, heavy land, rail and defence vehicles and for the oil and gas industry. The portfolio also includes diesel and gas systems and battery containers for mission critical, standby and continuous power, combined generation of heat and power, and microgrids. With its climate friendly technologies, Rolls-Royce Power Systems is helping to drive the energy transition.
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