Rolls-Royce sells naval propulsors units to FMD

July 18, 2025, by Fatima Bahtić

British multinational aerospace and defense company Rolls-Royce has completed the sale of its naval propulsors business to US engine supplier Fairbanks Morse Defense (FMD).

The sale, announced on September 19, 2024, comprises the naval propulsors units in Pascagoula, Mississippi and Walpole, Massachusetts, in the United States.

The sale of the company’s Naval Handling business (also to FMD), located in Peterborough, Ontario, Canada, is expected to close at a later date.

Rolls-Royce will retain its naval gas turbines and generator sets operations, which provide power-dense solutions for naval propulsion and onboard power needs.

“This acquisition represents a strategic investment in sustaining the United States’ defense manufacturing capabilities and ensuring we remain prepared to meet mission-critical demands,” said Steve Pykett, CEO of Fairbanks Morse Defense.

“The Pascagoula foundry, in particular, plays a vital role in supporting the Navy’s maritime dominance, and its continued operation expands our capacity to serve as a trusted partner to the U.S. military. Integrating these highly skilled workforces into Fairbanks Morse Defense strengthens our ability to deliver on our mission of supporting warfighter readiness at home and abroad.”

The sale of the naval propulsors and handling businesses is part of the transformation of Rolls-Royce, which started in 2023.

That transformation is based on a clear and granular strategy, focusing defense on strategic growth in the areas of combat, transport, and submarines.

The company has also been investing in its core markets in the United States.

Earlier this year, Rolls-Royce announced an expansion of its power systems operations in Mankato, Minnesota, to support data center growth.

Over the past decade, Rolls-Royce has invested more than $1.5 billion in the United States, including $1 billion in its defense operations in Indianapolis, Indiana, to support new programs like the US Air Force B-52 Commercial Engine Replacement Program and the US Army MV-75 FLRAA program.