Rolls-Royce Power Systems: record results in financial year 2024

Rolls-Royce Power Systems achieved record results in the financial year 2024. Underlying revenue climbed by 11% to EUR 5.05 bn, exceeding the EUR 5 bn mark for the first time. At EUR 662 million, adjusted operating profit was 40% higher than in the previous year. The return on sales rose to 13.1% (2023: 10.4 per cent).

Joerg Stratmann, CEO Rolls-Royce Power Systems, said: “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 6 billion euros make us very confident for 2025.” In addition, efficiency enhancement programs made a lasting contribution to improving earnings.

The highest order intake was recorded for mtu solutions for energy supply and for the government business. The largest increase in sales was recorded by the backup power systems business, which grew by 25% overall and by as much as 46% for backup power systems for data centers. The continuing demand for products for land and naval forces led to strong sales growth of 17% in the governmental business

The higher operating profit reflects the growth in power generation, driven by data centers, where the business model was optimized. Higher operating profit was also supported by cost efficiency benefits.

Following record investments in 2024, Rolls-Royce Power Systems is continuing to invest in the development of new products and the expansion of production capacities. This also includes the development of a new mtu engine platform, which will be ready for series production in the medium term. Substantial investments are being made this year in a new building for the assembly of gensets in Mankato and in the expansion of the engine plant in Aiken (both in North America).

Stratmann said: “This will enable us to meet our strong business in securing the energy supply for data centers and the requirements of our major customers by producing in the heart of the market.” Other major investments are being channeled into the ongoing optimization and expansion of production capacity in Friedrichshafen.

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