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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.