Rolls-Royce jumps 6% after aerospace giant boosts profit outlook
#Rolls-Royce #Profit Outlook #Aerospace #Stock Performance #Transformation Plan #Free Cash Flow #Share Buybacks
📌 Key Takeaways
- Rolls-Royce expects profits of over £4 billion this year
- Company beating analyst expectations across multiple financial metrics
- CEO announced profits will reach prior targets two years early
- Rolls-Royce shares have more than doubled over the past 12 months
📖 Full Retelling
British aerospace giant Rolls-Royce announced Thursday it expects profits of over £4 billion this year, exceeding analyst expectations as the engine and power systems maker benefits from another year of robust growth under its transformation plan. The company is targeting underlying operating profit of between £4 billion and £4.2 billion in 2026, above the midpoint of £3.65 billion as expected by analysts polled by FactSet. They also anticipate free cash flow of between £3.6 billion and £3.8 billion this year, again surpassing market expectations, causing shares to rise 5.8% in morning trading Thursday. CEO Tufan Erginbilgic highlighted that based on this bullish outlook, the company now expects to deliver profits within its prior mid-term guidance range two years earlier than planned, stating, 'Our transformation continues with pace and intensity.' The British company also upgraded its 2028 targets to £4.9 billion to £5.2 billion in underlying operating profit, an operating margin in the range of 18% to 20%, and free cash flow of £5 billion to £5.3 billion. Rolls-Royce has seen remarkable success recently, with shares more than doubling over the past 12 months as the company has thrived under Erginbilgic's transformation plan, which has significantly boosted investor confidence. In 2025, underlying operating profits jumped over 40% to £3.46 billion, beating FactSet estimates of £3.32 billion, while underlying revenue rose 12% to £20.1 billion. Additionally, the company announced that £2.5 billion of share buybacks would be completed this year as part of a multi-year buyback program of between £7 billion and £9 billion, citing a strong balance sheet.
🏷️ Themes
Corporate Performance, Aerospace Industry, Financial Markets
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Aerospace
Term used to collectively refer to the atmosphere and outer space
Aerospace refers to the technology and industry involved with the atmosphere and outer space collectively. Aerospace activity is very diverse, with a multitude of commercial, industrial, and military applications. Aerospace engineering consists of aeronautics and astronautics.
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Original Source
In this article RR.-GB Follow your favorite stocks CREATE FREE ACCOUNT Rolls-Royce said Thursday it expects profits of over £4 billion ($5.42 billion) this year as the aero engine and power systems maker banks on another year of robust growth. The aerospace giant is targeting underlying operating profit of between £4 billion and £4.2 billion in 2026, above the midpoint of £3.65 billion as expected by analysts polled by FactSet. It expects free cash flow of between £3.6 billion and £3.8 billion this year, also above expectations. Shares rose 5.8% in morning trading Thursday. Based on the bullish outlook, the company now expects to deliver profits within the prior mid-term guidance range two years earlier than planned, CEO Tufan Erginbilgic said. "Our transformation continues with pace and intensity," he said in a statement. The British company upgraded its 2028 targets to £4.9 billion to £5.2 billion in underlying operating profit, an operating margin in the range of 18% to 20%, and free cash flow of £5 billion to £5.3 billion. Rolls-Royce shares have more than doubled over the past 12 months as the company has thrived amid a transformation plan launched by Erginbilgic, which has boosted investor confidence. Rolls-Royce shares are up more than 100% over the past year. In 2025, underlying operating profits jumped over 40% to £3.46 billion, beating FactSet estimates of £3.32 billion. Underlying revenue in the year rose 12% to £20.1 billion. It also announced that £2.5 billion of share buybacks would be completed this year as part of a multi-year buyback program of between £7 billion and £9 billion, citing a strong balance sheet. Subscribe to CNBC PRO Subscribe to Investing Club Licensing & Reprints CNBC Councils Select Personal Finance Join the CNBC Panel Closed Captioning Digital Products News Releases Internships Corrections About CNBC Site Map Podcasts Careers Help Contact News Tips Got a confidential news tip? We want to hear from you. Get In Touch CNBC Newsletters...
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