Rolls-Royce Holdings plc has its origins in the engineering business of Henry Royce. Founded in 1884 it was manufacturing dynamos and electric machinery as early as 1894 and soon other products were added. In 1904, Mr. Royce partnered with Charles Rolls to form a company to sell an automobile Royce had designed. The new company, Rolls-Royce Ltd, operated until 1971 manufacturing automobiles and engines and electrical components for other industries.
The company went into bankruptcy in 1971 and was taken over by the UK government. The automobile unit was quickly spun off and later, the remaining Rolls-Royce Ltd. came back to the public market. The company’s IPO was in 1987 after which it went through a series of structural changes while maintaining the traditional Rolls-Royce plc trading symbol.
Today, Rolls-Royce is an industrial technology company with global operations that hails itself as Pioneers of Power. In practice, it is a UK-based aerospace and defense contractor and the 2nd largest aircraft engine maker worldwide. The company also manufactures marine and energy systems that include nuclear power plants. In regards to the green movement, Rolls-Royce is committed to the transition to greener energy sources and is a leader in their advancement. The company itself has pledged to be net-zero by 2030 and will be instrumental in helping many others reach the goal by 2050.
Rolls-Royce Holdings operates in 4 key segments that are Civil Aerospace, Power Systems, Defence, and New Markets. The Civil Aerospace segment makes markets and services engines for commercial aircraft. The Power Systems segment manufactures, markets, and services power generation systems for all end markets. End markets include industrial, marine, defense, and power grid. The Defence segment provides engines for military applications ranging from troop transport to fighter aircraft and nuclear submarines.
The New Markets segment is engaged in the research, development, and application of new power sources and applications. These include modular nuclear reactors and other sustainable or green technologies.
In terms of scale, the Civil Aerospace segment is the largest and is more than 40% of annual business. Defense comes in 2nd at 31% of revenue while Power Systems and New Markets make up 25% and 3% of the business respectively. Rolls-Royce Holdings plc employs more than 44,000 individuals and operates in 49 countries.
In terms of the market, the Rolls-Royce Civil Aerospace segment provides power systems for 35 types of aircraft and there were more than 11,800 engines in use at the end of 2022. The Defence segment serves 150 customers in 100 countries and has another 16,000 engines in service globally.
