The fact that one major trading partner after another is reaching agreements with the United States has not yet restored calm to the financial markets. Both in the UK and abroad, this summer’s earnings season continues to be followed by sharp share price movements. Expensive stocks combined with ongoing uncertainty are keeping investors alert. In many ways, this summer resembles the earnings season earlier this year. Back then, market nervousness was mainly driven by concerns over Donald Trump’s policy direction, and his influence remains noticeable. That said, investors now appear somewhat more used to his unconventional style. Despite the threat of import tariffs for countries without a deal, the market reaction has been relatively mild. The biggest moves are not coming from geopolitics, but from the fact that many stocks are priced for perfection. Valuations imply flawless execution and leave almost no room for disappointment. Even minor earnings misses can lead to steep declines, such as the nearly 15 percent drop in London Stock Exchange Group over the past two weeks. On the upside, there have also been clear winners. Our pick Rolls-Royce gained nearly 10 percent last week, and tech giants like Meta and Microsoft added hundreds of billions in market value after reporting strong results. The divergence is striking. Several other stocks in our portfolio have also reported quarterly results, making this a more detailed update than usual.   Rolls-Royce: Still Climbing Rolls-Royce has significantly raised its full-year 2025 profit guidance. Operating profit rose by 51 percent in the first half to £1.7 billion, with the operating margin increasing to 19.1 percent. Free cash flow is now projected at £3.1 billion for the year, £200 million higher than previously expected. This improvement is largely driven by stronger performance in the jet engine division, particularly the Trent series. The company has succeeded in substantially extending the time on wing, meaning the number of operational hours engines run before requiring major maintenance. For the Trent 1000, a newly certified turbine blade now more than doubles that operating time. This is expected to lead to an improvement of over 80 percent by 2027, which is a positive development, as Rolls-Royce earns revenue per flying hour. Other divisions also performed well. Power Systems benefited from growing demand in the data centre market and increased interest from government clients. Meanwhile, Rolls-Royce holds a strategic asset with the UK’s SMR programme for small modular nuclear reactors. The company has been approved to build three units and is already seeing interest from the Czech Republic and potentially the United States. The market responded positively, with the share price rising 11 percent on the day of the announcement. Since CEO Tufan Erginbilgic launched his transformation strategy in 2023, the stock has increased by more than 400 percent. We have been invested since the beginning and are now looking at a gain of over 1000 percent. Still, we believe Rolls-Royce has further to fly. Rolls Royce share price performance over the past year. Source: DeGiro.   Grab Holdings: Profitable, Growing, and Undervalued Grab, the Southeast Asian platform for mobility and delivery services, has reached a major milestone: profitability. In Q2 2025, the company reported a net profit of $20 million, compared to a loss of $68 million in the same period last year. This result exceeded analyst expectations. Revenue rose by 23 percent to $819 million, with growth across both the on-demand segment and financial services. Adjusted EBITDA increased by 69 percent to $109 million. This performance was driven by higher revenue, improved margins, and tight cost control. A key contributor appears to be the success of the GrabUnlimited loyalty programme, with subscribers spending more and ordering more frequently. The market is starting to take notice. The share price rose 10.9 percent over the past quarter and now stands at $5.29, still below the average price target of $5.91. The company has clear growth drivers, including digitalisation, rising consumer spending, and strategic investments in AI and autonomous vehicles. Its full-year EBITDA guidance remains unchanged at $460 to $480 million. We see Grab as an exponential story still in its early stages. Profitability is often the inflection point investors wait for, and that moment has now arrived. Grab Holdings share price performance over the past year. Source: DeGiro.   Brunel: Cyclical but Undervalued Brunel reported a 12 percent drop in revenue for the second quarter, down to €303 million. On an organic basis, revenue declined by 7 percent, a slight improvement compared to Q1. Gross profit fell by 20 percent to €52 million, and underlying operating profit was nearly cut in half. These are not attractive figures, but they are not unexpected given the current state of the labour market. That said, the company has not remained passive. Management is implementing additional cost measures expected to deliver €10 million in annual structural savings. These actions position Brunel for recovery when conditions improve. We are holding our position. Demand for technical professionals is cyclical, but the long-term trend remains strong. Once the market turns, Brunel is well positioned to scale up quickly and benefit from the rebound. Brunel share price performance over the past year. Source: DeGiro.   Centrica: Strong Cash Flow and Attractive Dividend Centrica delivered solid results for the first half of 2025, despite headwinds such as mild weather and pricing pressure. Adjusted EBITDA came in at £900 million, with free cash flow close to £250 million. The net cash position remained strong at £2.5 billion. Earnings per share rose to 7 pence. These are encouraging figures for shareholders. The interim dividend was increased by 22 percent to 1.83 pence per share, and the company is halfway through its £2 billion share buyback programme. For the full year, Centrica aims to pay a dividend of 5.5 pence per share, which equates to a dividend yield of approximately 3.3 percent at the current share price. Operational performance was mixed. British Gas Energy delivered strong results in the SME segment, while Centrica Energy and gas storage subsidiary Rough

Earnings season has begun. What immediately stands out: companies are reporting surprisingly strong results, despite a world full of uncertainty. Currency risks, geopolitical tensions, and the looming import tariffs set for August 1st create a volatile backdrop. But for those who stay focused, the main story is one of profit growth, resilience, and new opportunities. At SUT, we remain active, alert, and optimistic. And now that earnings season is gaining momentum, we’re seeing our patience pay off. The same trend is visible in the United States, where the season kicks off slightly earlier with half-year results. So far, 12% of the S&P 500 companies have reported their quarterly results – and over 80% have beaten expectations, according to an analysis by CNBC. Behind the scenes, we’re already working on the next addition to our portfolio. We’ve identified a company with an impressive order book and solid outlook. Thanks to this strong foundation, we expect the stock to be less vulnerable to market uncertainty and price fluctuations. You’ll receive our in-depth analysis soon.   Rolls-Royce: Above 1,000 Pence – But Far From Finished Our early standout is no longer officially a ‘share under ten’ – but that says nothing about its long-term potential. This week, Rolls-Royce broke through the 1,000 pence mark, a psychologically important milestone. But this is only the beginning. The demand for reliable, carbon-free energy continues to grow – and that’s exactly where Rolls-Royce fits in, with its small modular reactors (SMRs). These advanced nuclear solutions are expected to begin delivery by 2030. On July 31st, the company will report its quarterly results. That will give us deeper insight into new orders, profit margins, and future production capacity. Rolls Royce share price performance over the past year. Source: DeGiro.   Brunel: A Laggard with Potential The analysts at Kepler Cheuvreux are paying attention: they’ve initiated coverage of Brunel with a Buy rating and a €12 price target. We fully support that view. Brunel’s share price has noticeably lagged behind peers like Randstad and Adecco in recent months. Yet the fundamentals remain strong, the order book continues to grow, and the global labor market remains tight. We believe the market will soon correct this underperformance. In our view, Brunel is a strong recovery candidate for the weeks ahead. Brunel share price performance over the past year. Source: DeGiro.   Centrica: £1.3 Billion for Nuclear Power and Cash Flow Centrica plc is strengthening its position in the European energy market with a strategic £1.3 billion investment in the Sizewell C nuclear project. In return, the company secures a 15% stake in this future energy giant. The deal offers regulated returns of over 10%, protected against inflation — exactly the kind of stability investors seek in times of interest rate uncertainty and volatile commodity prices. The project also aligns perfectly with Centrica’s long-term strategy: predictable cash flows, a meaningful contribution to climate goals, and enhanced energy security for the UK. On July 24th, the company will report its half-year results. We remain confidently on board. Centrica share price performance over the past year. Source: DeGiro.