Rolls-Royce’s share price surged by 15% following the announcement of its impressive full-year earnings and positive outlook.
The British aerospace giant reported a 57% increase in operating profit, reaching £2.46 billion for 2024. This exceeded analyst expectations and was driven by strong performance in its jet engine and power systems divisions.
In addition to the robust earnings, Rolls-Royce reinstated its dividend, proposing a 6 pence per share payout, and launched a £1 billion share buyback program.
The company also upgraded its mid-term guidance, projecting operating profit to rise to between £3.6 billion and £3.9 billion.
The market reacted positively to these developments, with Rolls-Royce’s stock hitting a new 52-week high.
Rolls-Royce one-year chart (as of 28th February 2025 09:50 GMT)
The company’s CFO, Helen McCabe, highlighted the significant progress made in their multi-year transformation journey, emphasising the expanding earnings potential and improving balance sheet.