Strong demand for long-range jet engines has driven the stock price up; since the end of 2022, Rolls-Royce's stock price has increased by over 600%.
According to Zhitong Finance APP, the UK-based largest aviation manufacturer Rolls-Royce Holdings Plc has seen its overall market cap surpass the important milestone of 50 billion british pound (approximately 63 billion dollars) for the first time, as the two aerospace giants, Boeing and Airbus, have filled their civil aircraft orders, leading to a surge in demand for Rolls-Royce's long-range jet engines, boosting the company’s performance and stock price significantly. Since the end of 2022, Rolls-Royce’s stock price on the UK stock market has risen by over 600%.
This engine manufacturer headquartered in London shares its name with the luxury car leader Rolls-Royce, both called "Rolls-Royce". However, Rolls-Royce focuses on the aviation engine sector, such as providing power for the Trent XWB engine used by the French aircraft manufacturer Airbus. The Trent series, especially its large-scale application in long-distance flights, has made it one of the global leaders in long-range aviation engine manufacturing.
Rolls-Royce’s stock price rose 3.2% at the close of the UK stock market on Tuesday, with a year-to-date increase expanding significantly to 97%. Since the end of 2022, the stock has 'skyrocketed' by over 600%, surpassing all other constituent stocks in the European stock market benchmark index, the STOXX Europe 600 index, with a growth rate far exceeding that of ASML holding, the Dutch lithography giant, German software giant SAP, and Danish pharmaceutical giant novo-nordisk a/s, among the hottest investment symbols in the European market.
Due to the surge in international long-distance travel post-COVID, major global airlines have intensified efforts to purchase the latest civil aircraft models from Boeing and Airbus to enhance capacity — Boeing and Airbus have recently continued to face a 'record order' situation, with backlogged orders reaching new highs, consequently driving the sales of Rolls-Royce’s aviation engines soaring.
Earlier this year, Rolls-Royce announced that the 'flight hours' of large engines had finally surpassed the peak level before the COVID pandemic caused global lockdowns. Since the lifting of the COVID lockdowns, the company has secured an enormous scale of contracts in the civil aviation engine sector, thanks to its absolute leadership in the engine field for decades, with its continuous signing of large-scale contracts with airlines and aircraft manufacturers (such as Airbus and Boeing) providing significant support for its epic stock price rise. The company has also made significant progress in restructuring its operations and reducing debt, greatly enhancing investor confidence.
Rolls-Royce was founded in 1906 by Charles Stewart Rolls and Frederick Henry Royce. At its inception, Rolls-Royce was involved in both automobile manufacturing and aviation engine production, but in 1971, due to financial difficulties encountered while developing new types of aviation engines, the company was forced to declare bankruptcy.
Subsequently, under the intervention of the United Kingdom government, Rolls-Royce was split into two independent companies: Rolls-Royce, known in Chinese as 罗尔斯·罗伊斯, focusing on the manufacture of aviation engines and power systems; and Rolls-Royce Motors, the renowned luxury car leader, focusing on the production of luxury vehicles, which includes the brands Rolls-Royce and Bentley. Later, Bentley was acquired by Germany's Volkswagen, while Rolls-Royce was acquired by Germany's BMW.
Rolls-Royce is one of the three major aviation engine manufacturers globally, providing the core aircraft engines for major airlines worldwide. Its engines are widely used in flagship civil aviation aircraft models such as Boeing and Airbus. Rolls-Royce also provides core engines and related engine technology support for military aircraft globally, including fighter jets and transport aircraft. Additionally, Rolls-Royce provides power systems and propulsion technology for ships globally, encompassing commercial vessels, warships, and marine exploration among other fields. The company also supplies nuclear power systems for military submarines, being a key supplier for the United Kingdom's naval nuclear submarines for a long time.