Rolls-Royce profits soar on AI data center demand
Rolls-Royce just posted a huge 50% jump in profits for the first half of the year, reaching £1.73 billion.
What's behind it? Strong sales of jet engines for planes and a major spike in demand for power systems that keep AI data centers running.
With this momentum, they've raised their full-year profit forecast to £3.1 billion to £3.2 billion and expect more cash flow than last year.
The CEO is optimistic about the future
The company's success is tied to some big trends: more airlines are maintaining their fleets, defense spending is up because of global conflicts like Ukraine, and AI tech needs serious power—orders for those systems shot up 85%.
Investors noticed too: Rolls-Royce's stock jumped 10.5%, making it the fifth most valuable company on the London Stock Exchange.
The CEO says smart cost-cutting and new projects like mini nuclear reactors are key to keeping this growth going into the next decade.