Rolls-Royce will report back on the latest steps in its impressive turnaround on Thursday as a boom in defence spending has helped propel the stock to record highs in 2025.

The group, which has UK bases in Derby and Filton near Bristol, hiked its earnings outlook in July after seeing strong demand for engines offset supply chain challenges and tariff woes.

Half-year underlying operating profits jumped by 50% to £1.7bn for the first half of 2025, helping it raise its full-year forecast to between £3.1bn and £3.2bn.

It marked a significant upgrade after previously pointing towards profits between £2.7bn and £2.9bn.

The aerospace giant, which makes engines used in large Boeing and Airbus planes, said it was supported by a strong performance in its large engines business, as well as margin

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