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Rolls-Royce lifts returns as annual profit soars

  • On Thursday, Rolls-Royce plc said it expects profits over £4 billion this year and unveiled a £7 billion-£9 billion multi-year buyback alongside a 9.5p dividend for 2025.
  • Chief executive Tufan Erginbilgic's transformation plan launched three years ago strengthened the group and power-systems demand from data centres and aero-engines durability lifted performance, helping shares more than double over the past year.
  • On performance metrics, Rolls-Royce posted an underlying operating profit of 3.5 billion pounds with a 17.3% margin and underlying revenue rose 12% to 20.1 billion pounds in 2025.
  • Shares rallied, with Rolls-Royce shares rising 7% to trade above 1400p on Thursday, as analysts including Matt Britzman said strong numbers should prompt upgrades.
  • Looking ahead, the company upgraded 2028 mid-term targets to underlying operating profit of £4.9 billion-£5.2 billion and expects free cash flow of £3.6 billion-£3.8 billion this year.
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This is the second consecutive year that the company has announced a share buyback program, after a decade without any.

·Brazil
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Rolls-Royce jumps 6% after aerospace giant boosts profit outlook

Rolls-Royce sees profits of over £4 billion this year as the engine and power systems maker banks on another year of robust growth.

·United States
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DirectorsTalk Interviews broke the news in on Thursday, February 26, 2026.
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