Farnborough, UK – British aerospace company Rolls-Royce Holdings Plc revealed impressive full-year earnings, surpassing expectations and announcing a £1 billion share buyback. Specializing in manufacturing jet engines for commercial aircraft and power systems for ships and submarines, Rolls-Royce reported an operating profit of £2.46 billion in 2024, a significant 57% increase from the previous year.
The company attributed its success to strong delivery performance in 2023 and 2024, leading to an upward adjustment in its mid-term targets. With operating profit projected to reach between £3.6 billion and £3.9 billion in the near future, Rolls-Royce also reintroduced a dividend of 6 pence per share after a five-year hiatus.
Additionally, Rolls-Royce announced a £1 billion share buyback to be completed by the end of 2025. Following this news, the company’s shares soared by as much as 16%, achieving a new 52-week high and becoming the top performer on the pan-European Stoxx 600 index.
Helen McCabe, Rolls-Royce’s CFO, expressed her satisfaction with the company’s progress during a segment on CNBC’s “Squawk Box Europe.” She highlighted the company’s commitment to delivering on promises, emphasizing the expanding earnings potential and improved balance sheet resulting from their ongoing transformation journey.
Investor confidence in Rolls-Royce is at a high, with the company’s strategic decisions and financial outlook resonating positively in the market. The resurgence of dividends and the share buyback program have further solidified Rolls-Royce’s position as a strong player in the aerospace and power systems industries.