Rolls-Royce has secured a significant £563 million contract with the UK Ministry of Defence (MoD) to maintain and service engines for the Royal Air Force's Typhoon fighter jets. This landmark agreement marks a continuation of the long-standing partnership between Rolls-Royce and the MoD, building on over a century of collaboration.
The contract, known as the Typhoon Engine Support Solution (TESS), will see Rolls-Royce provide maintenance and repair services for 130 EJ200 engines, which are crucial for the operation of the Typhoon aircraft. Most of the work will take place at Rolls-Royce's defence headquarters in Bristol, where the company is dedicated to advancing military power and propulsion technology.
According to Adam Riddle, president of defence at Rolls-Royce, "This contract builds on more than a century of Rolls-Royce partnership and trust with the Ministry of Defence. This investment enables us and our supply chain to ensure the Royal Air Force can execute their missions effectively, wherever and whenever they’re needed, in an increasingly complex global environment.”
The five-year TESS contract is expected to support around 200 direct jobs at Rolls-Royce, while also bolstering the UK supply chain, which could support up to 2,400 jobs across the nation. This initiative is part of the government's broader Plan for Change, aimed at securing jobs and enhancing the skills base within the UK's defence industry.
Defence Secretary John Healey emphasized the importance of this contract, stating, “Together with our upgrade programme, this contract will ensure our Typhoon fleet remains the backbone of UK air defence for the next decade.” He highlighted that the TESS contract not only ensures the availability of the Typhoon fleet but also drives growth and prosperity within UK defence.
Lyndon Hoyle, head of the Typhoon delivery team at Defence Equipment & Support (DE&S), echoed these sentiments, saying, "This contract not only ensures the continued availability of the Typhoon fleet, it helps drive growth and prosperity within UK defence, reinforcing our dedication to procuring capability that equips our armed forces with a competitive edge now and in the future.”
The EJ200 engine has been in service for over two decades and is operated by several countries worldwide, including Austria, Germany, Italy, Oman, Qatar, Spain, and the UK. With over 1,200 engines in service and more than 500 aircraft utilizing this technology, the EJ200 engine is recognized for its exceptional thrust-to-weight ratio, making it ideal for demanding military applications.
Moreover, the technology embedded within the EJ200 engine is designed to deliver low ownership costs through reduced part counts, low fuel consumption, and high reliability. The collaborative effort behind the EJ200 involves expertise from Rolls-Royce, MTU, Avio, and ITP, which came together in the late 1980s as EUROJET Turbo GmbH.
On May 8, 2025, shares in Rolls-Royce experienced a 3% increase, trading at 790.60p in early market activity. This rise comes as the UK appears poised to secure a trade deal with the United States, signaling positive prospects for the aerospace giant. The company's shares had previously taken a hit when former President Donald Trump announced a series of tariffs in early April, but they have since fully rebounded.
With the TESS contract, Rolls-Royce aims to sustain vital skills necessary for the Royal Air Force to deliver air capabilities today and bridge to future initiatives, such as the Global Combat Air Programme (GCAP). The company remains committed to developing the right technologies and capabilities to meet future demands, ensuring that the UK maintains a strong presence in global defence.
Beyond the immediate implications of the TESS contract, Rolls-Royce's global influence in strategic sectors such as defence, civil aerospace, and power generation highlights its role as one of the UK's largest exporters by volume and value. The company exports approximately 80% of what it produces in the UK, accounting for about 2% of all UK goods exports.
As Rolls-Royce continues to innovate and provide solutions for the armed forces, it emphasizes its role as a strategic partner to the UK's military and its commitment to building stronger relationships with allies around the world. The company is focused on delivering the power required to protect citizens and connect societies, cultures, and economies.
In summary, the £563 million TESS contract not only secures jobs and sustains essential skills within the UK but also reinforces the strategic partnership between Rolls-Royce and the Ministry of Defence. As the UK navigates an increasingly complex global environment, this agreement represents a significant step in ensuring the Royal Air Force's operational readiness and capability for years to come.