Source: Sharecast
Berenberg noted that Rolls‑Royce had the youngest large engine fleet among European peers on a thrust‑adjusted basis and had delivered the strongest growth in flying hours so far this year. Thrust‑adjusted large commercial engine flying hours were up 5% year‑to‑date, compared with a 2% increase at Safran and a 1% decline at MTU.
The German bank noted that engines under ten years old account for 51% of Rolls‑Royce's fleet, versus 43% at Safran and 35% at MTU, giving an average thrust‑adjusted age of 12 years and an attractive platform as widebody production ramps up. It added that widebody capacity has proved more resilient than narrowbody in the face of higher jet fuel prices, favouring Rolls‑Royce given its 93% exposure to the widebody segment.
Berenberg also noted that Rolls-Royce's defence and power systems divisions together were expected to contribute about 43% of 2026 underlying earnings, providing diversification into structurally growing end‑markets.
Looking ahead, Berenberg now forecasts 6% engine‑flying‑hour growth in 2026 and lifted its 2026 underlying EBIT margin assumptions for Rolls-Royce's civil aerospace and power systems iunits by 50 and 60 basis points, driving 2% and 3% upgrades to EBIT and free cash flow estimates, respectively.
Reporting by Iain Gilbert at Sharecast.com
