Overview
- Underlying operating profit for 2025 rose about 40% to roughly £3.46 billion, with free cash flow of £3.3 billion and year‑end net cash of about £1.9 billion.
- Rolls‑Royce announced a £7–9 billion buyback running through 2028, including up to £2.5 billion in 2026 to be executed by Morgan Stanley and UBS, with all repurchased shares cancelled.
- The company reinstated dividends, declaring a 5p final payout to bring total 2025 dividends to 9.5p per share.
- Guidance increased to 2026 profit of £4.0–£4.2 billion and free cash flow of £3.6–£3.8 billion, with upgraded 2028 goals of £4.9–£5.2 billion profit, 18–20% margins and £5.0–£5.3 billion free cash flow.
- Management cited higher widebody flying hours, defence orders and data‑centre power demand as growth drivers, while the CEO said UltraFan narrowbody work seeks partners and grant‑style R&D support—not loans—as shares rose roughly 5–7%.