Rolls-Royce Holdings (LSE:RR.) EBIT: £7,237 Mil (TTM As of Dec. 2025)


LSE:RR. Rolls-Royce Holdings PLC LSE:RR.
69 GF Score
Price £14.19
GF Value £6.14
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Rolls-Royce Holdings EBIT?

Rolls-Royce Holdings LSE:RR. +2.01% 69 EBIT is £7,237 Mil as of Dec. 2025. GuruFocus rates LSE:RR. with a GF Score™ of 69/100 and a GF Value™ of £6.14 (Significantly Overvalued). The stock has 5 warning signs investors should review.

Rolls-Royce Holdings's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was £2,226 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was £7,237 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Rolls-Royce Holdings's annualized ROC % for the quarter that ended in Dec. 2025 was 11.70%. Rolls-Royce Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 95.86%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Rolls-Royce Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 6.25%.

Rolls-Royce Holdings  (LSE:RR.) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Rolls-Royce Holdings's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=4724 * ( 1 - 31.81% )/( (27773 + 27305)/ 2 )
=3221.2956/27539
=11.70 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=37940 - 5702 - ( 6057 - max(0, 18218 - 22683+6057))
=27773

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=38115 - 6910 - ( 6048 - max(0, 19287 - 23187+6048))
=27305

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Rolls-Royce Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=4452/( ( (4517 + max(-3804, 0)) + (4772 + max(-5145, 0)) )/ 2 )
=4452/( ( 4517 + 4772 )/ 2 )
=4452/4644.5
=95.86 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2987 + 5611 + 3745) - (5702 + 0 + 10445)
=-3804

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3124 + 5728 + 3864) - (6910 + 0 + 10951)
=-5145

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Rolls-Royce Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=7237/115873.605
=6.25 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Rolls-Royce Holdings EBIT Related Terms

Rolls-Royce Holdings EBIT Historical Data

* Premium members only.

The historical data trend for Rolls-Royce Holdings's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Rolls-Royce Holdings EBIT Chart

Rolls-Royce Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only -42.00 -1,159.00 2,796.00 2,596.00 7,237.00

Rolls-Royce Holdings Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,204.00 1,618.00 978.00 5,011.00 2,226.00

LSE:RR. vs GE, RTX, BA: EBIT Comparison

For the Aerospace & Defense subindustry, Rolls-Royce Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Rolls-Royce Holdings EV-to-EBIT vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Rolls-Royce Holdings's EV-to-EBIT falls into.


LSE:RR.
69GF Score
Rolls-Royce Holdings PLC LSE:RR.
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Rolls-Royce Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was £7,237 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of £7,237 Mil mean?
Rolls-Royce Holdings (LSE:RR.) has a EBIT of £7,237 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Rolls-Royce Holdings.
Is Rolls-Royce Holdings' EBIT too high?
Rolls-Royce Holdings' current EBIT is £7,237 Mil. Overall, Rolls-Royce Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rolls-Royce Holdings' EBIT compare to GE and RTX?
Rolls-Royce Holdings' EBIT of £7,237 Mil can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Aerospace & Defense company?
A good EBIT depends on the Aerospace & Defense industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Rolls-Royce Holdings. Rolls-Royce Holdings's current EBIT is £7,237 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rolls-Royce Holdings stock overvalued right now?
Based on GuruFocus' analysis, Rolls-Royce Holdings (LSE:RR.) is currently considered Significantly Overvalued. The stock's GF Value™ is £6.14, compared to a current price of £14.19 — trading 131.1% above its estimated fair value. The current EBIT is £7,237 Mil. Rolls-Royce Holdings' overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Rolls-Royce Holdings (LSE:RR.), the current EBIT is £7,237 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Rolls-Royce Holdings (LSE:RR.) Overvalued in 2026?

Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued. The current stock price of £14.19 is trading 131.1% above its estimated GF Value™ of £6.14. GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.

Key valuation signals for LSE:RR.:

  • EBIT: £7,237 Mil
  • GF Value™: £6.14 vs. price of £14.19 (131.1% above fair value)
  • GF Score™: 69/100 with 5 warning signs

No single metric tells the full story. See the LSE:RR. stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Rolls-Royce Holdings Business Description

Address 90 York Way, Kings Place, London, GBR, N1 9FX
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.
69GF Score

Get the complete analysis for LSE:RR.

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£14.19
Price
£6.14
GF Value