Rolls-Royce Power Systems reports record sales and profit
Rolls-Royce Power Systems has reported record sales, profit and return on sales for the 2024 financial year. Underlying revenue increased by 11 per cent to €5.05bn (£4.27bn), exceeding the €5bn threshold for the first time. Adjusted operating profit rose by 40 per cent to €662m (£560m), while the return on sales reached 13.1 per cent, compared to 10.4 per cent in 2023.
Joerg Stratmann, chief executive officer of Rolls-Royce Power Systems, says: “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 €6bn euros make us very confident for 2025.” He also noted that efficiency enhancement programmes had contributed to improved earnings.
Order intake for mtu solutions reached €6bn, with the strongest demand recorded in energy supply and governmental business. Sales in the backup power systems sector increased by 25 per cent overall, with a 46 per cent rise in backup power solutions for data centres. Demand from land and naval forces contributed to a 17 per cent increase in sales within the governmental segment.
Higher operating profit was driven by growth in power generation, particularly in the data centre sector, where business model adjustments were implemented, as well as cost efficiency measures.
Following a period of record investment in 2024, Rolls-Royce Power Systems is continuing to expand its product development and production capacities. This includes work on a new mtu engine platform, which is expected to enter series production in the medium term. Stratmann says: “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.”
In 2024, Rolls-Royce partnered with Lürssen to bolster their collaboration in the superyacht refit market.
Significant investment is also being directed towards production facilities, including a new assembly building for gensets in Mankato and an expansion of the engine plant in Aiken, both in North America.
“This will enable us to meet our strong business in securing the energy supply for data centres and the requirements of our major customers by producing in the heart of the market,” Stratmann says. Further investments are being allocated to the continued optimisation and expansion of production capacity in Friedrichshafen.
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