Erginbilgic made the comments during Rolls-Royce’s second-quarter earnings call covering its first-half 2026 results. He described the company as a clear beneficiary of the UK Defence Investment Plan, which includes the GCAP commitment.
The £9 billion represents the government’s wider multi-year funding commitment to GCAP rather than a contract awarded directly to Rolls-Royce. The company did not disclose its expected share of programme spending, associated investment requirements or projected revenue.
GCAP is being developed as a next-generation combat-air system and represents a major long-term opportunity for Rolls-Royce’s military propulsion business. The company’s comments suggest that the funding decision gives suppliers a clearer basis for planning investment and development work through the end of the decade.
Erginbilgic also said the UK Defence Investment Plan supported the outlook for AUKUS. He provided no additional financial guidance for Rolls-Royce’s involvement in either programme.
The company linked the stronger policy environment to wider opportunities in autonomous propulsion. The UK plan includes a separate commitment to spend £5 billion on autonomous platforms over the next four years.
Rolls-Royce also highlighted the first flight of the US Navy’s MQ-25A Stingray unmanned aerial refuelling aircraft, which is powered by its AE engine family. The milestone was cited as evidence of the company’s existing position in propulsion for autonomous military aircraft.
In Germany, Rolls-Royce is working under contract on a scalable core engine concept for multiple autonomous platforms in the medium Collaborative Combat Aircraft class. The company expects to complete the design activity towards the end of 2026.
The long-term programme outlook comes as Rolls-Royce reports stronger performance in its Defence division. The business recorded a 21% operating margin in the first half, supported by improved transport and combat aftermarket activity, lower shop-visit costs, manufacturing efficiencies and profitable international sales.
Erginbilgic cautioned that the 21% margin should not be treated as a permanent run rate because the first-half sales mix favoured higher-margin aftermarket work. He nevertheless said the underlying operational improvements were sustainable and should keep future margins above earlier levels.
