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Rolls-Royce has raised its revenue targets and introduced a share buyback of up to £9bn over the subsequent three years, as the UK aerospace engineer continues to profit from rising air journey and a sweeping restructuring.
The FTSE 100 group advised buyers on Thursday that it had upgraded its midterm targets for underlying working revenue to £4.9bn-£5.2bn, up from £3.6bn-£3.9bn beforehand, and free money movement to £5bn-£5.3bn from £4.2bn-£4.5bn. It now expects an underlying working margin of up to 20 per cent, from 15-17 per cent beforehand.
Rolls-Royce stated annual profits in 2025 rose 40 per cent to a file £3.46bn on gross sales of simply over £20bn. Free money movement was £3.3bn.
The firm additionally introduced a £7bn to £9bn share buyback for 2026-28, with £2.5bn to be accomplished this yr.
The outcomes despatched Rolls-Royce shares up 7 per cent on Thursday to greater than £14.
Strong demand for its business plane engines, which energy giant Airbus and Boeing jets, as effectively as energy techniques for knowledge centres, coupled with a sweeping restructuring beneath chief govt Tufan Erginbilgiç, have turbocharged the corporate’s shares over the previous three years.
They have greater than doubled over the previous yr, closing at £13.12 on Wednesday, valuing Rolls-Royce at £110.6bn and catapulting it into the highest 10 of the FTSE 100.
Erginbilgiç stated the corporate’s transformation was persevering with “with pace and intensity . . . we have navigated challenges from supply chain to tariffs, and delivered a strong performance in 2025, all while we built the foundations for significant growth for years to come”.
He added: “Beyond the midterm, we continue to see significant growth from existing businesses as well as from new business opportunities.”
