RR.

Rolls-Royce Holdings PLC

Industrial Goods and Services First-pass screen £99.1bn

580/1000 Overall fit

AI beneficiary 35% 58

Operating leverage 25% 73

Valuation 25% 40

Downside protection 15% 65

First-pass take

Strong operating leverage (revenue +14%, profit +38%) and margin expansion (13.8%→17.3%) driven by civil aerospace aftermarket strength and power-generation data-centre growth. Net cash position, multi-year order visibility (2.5x civil large engine book-to-bill), and robust cash generation (£3.3bn FCF) provide downside protection; supply chain headwinds and cyclical exposure temper upside.

Flags

strong-order-bookoperating-leveragenet-cash-positivedata-centre-tailwindsupply-chain-headwindscyclicalmargin-expansion