Rolls-Royce Shares Surge on Profit Beat and £7B Buyback Plan
Rolls-Royce Holdings Plc delivered a Stellar performance, with 2025 underlying operating profit jumping 40% to £3.46 billion, surpassing analyst expectations of £3.27 billion. The aerospace giant’s operating margin expanded to 17.3%, while free cash flow reached £3.3 billion—bolstering its year-end net cash position to £1.9 billion.
The company announced an aggressive capital return program, targeting £7–9 billion in share buybacks between 2026–2028, with £2.5 billion earmarked for 2026. Medium-term profit targets were raised to £4.9–5.2 billion, reflecting confidence in sustained demand for its jet engines and power systems.
Investors cheered the 5 pence final dividend and upgraded guidance, sending shares up 6%. The outlook for 2026 remains bullish, with operating profit projected at £4.0–4.2 billion and free cash Flow at £3.6–3.8 billion.
