Rolls-Royce Skyrockets: Mid-Term Triumphs and a Billion Pound Share Buyback

British engine-maker Rolls-Royce projects further growth, lifting mid-term targets following a 55% profit rise. It announces a dividend and £1 billion share buyback, reflecting significant progress. CEO Tufan Erginbilgic's efforts have transformed the company into a competitive entity, surpassing financial expectations for 2024.

British engine-maker Rolls-Royce has elevated its mid-term growth targets after achieving a 55% surge in annual profit, exceeding its 2024 guidance. This is attributed to increased widebody jet flights and a successful cost-saving initiative.

In a confident move, Rolls-Royce declared a 6 pence per share dividend for 2024. The announcement comes after a five-year hiatus triggered by the pandemic, along with plans to initiate a £1 billion ($1.27 billion) share buyback. These steps underline the progress made under CEO Tufan Erginbilgic's leadership, who has been pivotal in steering the company towards a resilient and growth-oriented future.

Rolls-Royce, a key player as Airbus's exclusive engine partner for widebody planes and a supplier for Boeing's 787, revealed that it would meet its previous mid-term targets two years ahead of schedule. The company now anticipates a mid-term underlying operating profit of £3.6 billion to £3.9 billion, after achieving an underlying operating profit of £2.46 billion in 2024, surpassing the expected £2.287 billion.

(With inputs from agencies.)