Rolls-Royce shares surge 19.4% after strong earnings

Rolls-Royce, the British aerospace giant, reported better-than-expected full-year earnings on Thursday, boosting its mid-term forecast and announcing a £1 billion ($1.27 billion) share buyback. The company, known for manufacturing jet engines for commercial aircraft and power systems for ships and submarines, posted an operating profit of £2.46 billion for 2024, surpassing analysts’ expectations and marking a 57% increase from the previous year.

The company attributed its strong performance to robust deliveries in 2023 and 2024, allowing it to meet its mid-term targets two years ahead of schedule. Rolls-Royce now expects operating profits to rise to between £3.6 billion and £3.9 billion in the coming years.

Additionally, Rolls-Royce reinstated its dividend with a payout of 6 pence per share after a five-year hiatus and revealed plans for a £1 billion share buyback, to be completed by the end of 2025. Analysts at Citi hailed the results as “very strong,” and shares of Rolls-Royce surged by as much as 19.4%, reaching an all-time high and propelling the stock to the top of the pan-European Stoxx 600 index.