Booming Engine Manufacturer on Lake Constance Experiences Profit Growth and Plans to Hire More Employees: Clarifying the Factors Behind Its Success
Rolls-Royce Power Systems Boosts Growth and Profitability in 2025
Rolls-Royce Power Systems, a leading manufacturer of engines for military ships, tanks, and various industrial applications, is experiencing significant growth and profitability, outpacing the market. This positive trend is largely due to the company's strategic focus on key sectors such as data centres and governmental projects.
Jörg Stratmann, CEO of Rolls-Royce Power Systems, expressed his pride in the trust of customers, strong order intake, and dynamism in focus markets. The order intake reached 3.5 billion euros, marking a 32 percent increase from the same period last year.
The company's revenue also saw a substantial rise, increasing by 20 percent to 2.4 billion euros in the first half of 2025. This growth is particularly evident at the Friedrichshafen site, where the workforce has expanded from around 10,300 to 10,600 employees.
Rolls-Royce Power Systems' strategic investments in sustainability and diversification into new energy technologies have also contributed to this growth. One such initiative is the Small Modular Reactor (SMR) programme, for which Rolls-Royce was selected as the sole provider for the UK’s first SMR programme. This programme is expected to become profitable by 2030 and contribute to revenue growth.
The SMR initiative is not the only area where Rolls-Royce is expanding. The company is also investing in China and the USA, with around 100 million US dollars flowing into the expansion of the engine plant in Aiken, South Carolina, and the expansion of the power systems plant in Mankato, Minnesota.
As a result of this growth, Rolls-Royce Power Systems is urgently seeking several hundred new employees worldwide. In Friedrichshafen alone, around 300 positions are currently open, with around 150 of them for production employees. The company is particularly seeking qualified specialists in various fields.
The order backlog is at a record level, with an order coverage of 100 percent for this year and 43 percent for 2026. Rolls-Royce Power Systems expects to hire several hundred new employees worldwide next year to meet the expanding orders and new technology rollouts, especially under the SMR clean energy initiative.
In addition to this, Rolls-Royce is developing a new MTU engine platform, promising higher power density, lower emissions, and improved fuel consumption compared to the competition. This new engine is expected to be available from 2028.
Rolls-Royce Power Systems also announced a significant order for the delivery of a battery storage system for a Lithuanian energy provider. The adjusted operating result of Rolls-Royce Power Systems rose by 89 percent to 371 million euros in the first half of 2025.
The government business at Rolls-Royce Power Systems has boomed since Russia invaded Ukraine, as European states are massively rearming. This surge in demand has further fueled the company's growth and profitability.
In summary, the growth and profit increase at Rolls-Royce Power Systems in 2025 are primarily driven by its capture of profitable growth in key sectors such as data centres and governmental projects, complemented by strategic investments in sustainability and diversification into new energy technologies like the SMR programme. These efforts have led to a 50% jump in underlying operating profit to £1.7 billion and a rise in operating margin from 14% to 19.1% in H1 2025. The company's confidence in expanding operations is underpinned by its robust order backlog and the promising prospects of its new initiatives.
- Rolls-Royce Power Systems has witnessed growth and increased profitability in economic and social policy sectors, particularly in data centers and governmental projects, which account for a significant portion of the company's strategic focus.
- Apart from these, the company has ventured into technology and finance, investing in new energy technologies such as Small Modular Reactors (SMR) and expanding operations in China and the USA, requiring substantial investment in their respective engine and power systems plants.
- Rolls-Royce Power Systems has shown an interest in exploring and harnessing business opportunities in technological advancements, as evidenced by the development of a new MTU engine platform that offers higher power density, lower emissions, and improved fuel consumption compared to competitors, set to be available by 2028.
