Rolls-Royce to return billions to investors after profits soar

Business & Finance
26 Feb 2026 • 7:55 PM MYT
The Independent
The Independent

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  • Rolls-Royce announced a significant surge in its annual profit for 2025, increasing by £1 billion, alongside an upgraded financial outlook for the coming years.
  • The engineering firm reported an underlying operating profit of £3.5 billion for 2025, a 40 per cent rise from the previous year, with underlying revenues surpassing £20 billion.
  • This robust performance was driven by substantial military aircraft orders, including over £1.5 billion from the UK Ministry of Defence and the US Department of War, new orders for Eurofighter aircraft engines and growing demand for powering data centres.
  • The aerospace titan revealed plans for a £7 billion to £9 billion multi-year share buyback to investors through 2028, which comes as the firm wraps up a £1 billion buyback from the last 12 months.
  • Rolls-Royce now anticipates underlying operating profits to reach between £4.9 billion and £5.2 billion by 2028, significantly higher than its previous target, attributing success to its transformation and £600 million in cost savings since 2022.

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