Rolls-Royce’s Power Systems business unit – with its mtu brand – saw revenue rise 16% to €4.56 billion with underlying operating profit improving 44% to €474 million.
Revenue was primarily driven by energy systems, especially for data centres. Pricing and cost management measures produced a higher margin for the year as a whole and, in particular, higher profits in the second half of the year.
“We are in a position of strength,” said Jörg Stratmann, chief executive of Rolls-Royce Power Systems. “Our core business is doing well…. We’re seeing growth potential in nearly all our markets, largely independent of global economic developments,”
Demand was especially strong in power generation, marine and governmental business. Cash flow from operating activities was €530 million with a cash conversion rate of 112% following €185 million and 56% in the previous year.
The increase in adjusted operating profit was due to commercial optimisation and strict management of costs. A major improvement in earnings was achieved – above all in the energy systems business, primarily with mtu standby power systems for data centres. The improvement in the operating margin was achieved despite some negative impact from a shift in the product mix.
The company is focussing on five strategic initiatives: power generation, governmental business, marine, battery storage, and service. “Another special highlight is our first investment in 20 years in developing a new mtu engine platform,” said Stratmann.
“It will enable us to offer customers a wider performance range and will give us a foundation for further developments in combustion engines using alternative fuels.”
