Rolls-Royce has quietly confirmed its exit from electric propulsion activities in the advanced air mobility sector. In a trading update released on November 7, the aircraft engines manufacturer mentioned the move in a one-line reference, without providing any details as to how the business unit will be shut down.
Group chief executive Tufan Erginbilgic announced plans to sell this part of its electrical power business during its Capital Markets Day event in November 2023. Since then, Rolls-Royce has not found a buyer and has not denied reports that the business unit is now being shut down, although work on hybrid-electric propulsion technology is expected to continue.
Rolls-Royce had been developing the electric propulsion system for Vertical Aerospace’s four-passenger eVTOL aircraft. After pulling out of the program last year, it had to pay $34 million in compensation to the UK start-up, which is now struggling to secure funding for its program.
In November 2019, Rolls-Royce and partners achieved a world speed record with the Spirit of Innovation technology demonstrator aircraft. At the time, it seemed to have strong ambitions in the sector, having acquired Siemens' electric propulsion division.
The closure of the electrical power unit is part of a wider restructuring that has seen Rolls-Royce sell its Naval Propulsors & Handling business, Direct Air Capture assets, and the lower-power-range engines business of Rolls-Royce Power Systems. The trading update said that the company has launched “new purpose and behaviors across the organization.”
Projected underlying operating profits for 2024 are expected to be in line with previously declared expectations of between £2.1 billion and £2.3 billion (about $3 billion). Free cash flow for the year is expected to be between £2.1 billion and £2.2 billion.
The company said that demand has remained strong in the civil aerospace sector. Flight activity for large airliner turbofans now slightly exceeds pre-Covid 2019 levels, with 18% year-on-year growth reported through the end of October. It expects to have delivered between 500 and 550 engines by year-end, with between 1,300 and 1,400 maintenance, repair, and overhaul shop visits on the books.
In the business aviation sector, the new Pearl 10X engine for Dassault’s Falcon 10X recently completed the flying testbed phase of its development program. The aircraft is due to enter service in 2027.