Aero engine maker Rolls-Royce has upgraded its medium-term targets after reporting a surge in profit and a further boost for shareholders.
The company, whose engines power Airbus A350 widebodied jets and Boeing 787s, posted a full-year underlying operating profit of £3.5 billion for 2025, up from £2.5bn in 2024 after the operating margin improved to 17.3% from 13.8%.
It is now expecting £4.9bn to £5.2bn in underlying operating profit and £5bn to £5.3bn in free cash flow by 2028, while also announcing a significant £7bn to £9bn multi-year share buyback programme for 2026-2028, including £2.5bn this year.
It proposes a final dividend for 2025 of 5p per share, bringing the total to 9.5p, representing a 32% payout ratio of underlying profit after tax..
Chief executive Tufan Erginbilgic said: “Beyond the mid-term we continue to see significant growth from existing businesses as well as from new business opportunities.
“With our new ?capabilities and mindset, we have navigated challenges from supply chain to tariffs, and delivered a strong performance in 2025.”
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