Market's view on Rolls-Royce
Published on April 2024
- Rolls-Royce has downscaled its plans to construct two new factories for its Small Modular Reactor (SMR) programme in the UK due to delays in a government design competition.
- The company will now procure heavy pressure vessels from third-party suppliers instead of building a dedicated factory, with Sheffield Forgemasters highlighted as a qualified supplier.
- Despite the change in plans for the pressure vessel factory, Rolls-Royce continues to progress with its plans for a second factory to build the modular units of its SMRs.
- There is ongoing uncertainty and frustration regarding the government’s delayed decisions in the energy sector, impacting company strategies and national energy security.
- Stock watchers express concerns about the impact of external issues, such as Boeing’s production delays, on Rolls-Royce since some Boeing aircraft use Rolls-Royce engines.
- Positive movements in Airbus production rates are seen as beneficial for Rolls-Royce, potentially increasing engine orders.