rolls royce The aero engine and power systems maker said on Thursday it expects to make more than 4 billion pounds ($5.42 billion) in profits this year as it continues to see strong growth.
The aerospace giant is targeting underlying operating profits of between 4 billion pounds and 4.2 billion pounds in 2026, above the midpoint of analyst estimates compiled by FactSet of 3.65 billion pounds. It expects free cash flow to be between £3.6bn and £3.8bn this year, also better than expected.
Shares rose 5.8% in Thursday morning trading.
CEO Tufan Erginbilgić said that based on the bullish outlook, the company expects to achieve profits two years earlier than planned and within the previous medium-term guidance.
“Our transformation continues with pace and momentum,” he said in a statement.
The British company has raised its 2028 targets to underlying operating profit of 4.9 billion to 5.2 billion pounds, operating margin of 18% to 20%, and free cash flow of 5.0 billion to 5.3 billion pounds.
Rolls-Royce’s share price has more than doubled in the past 12 months as the company has grown amid a transformation plan laid out by Ergin Birgic and strengthened investor confidence.
Rolls-Royce’s share price has risen more than 100% in the past year.
Underlying operating profit for 2025 surged more than 40% to £3.46bn, beating FactSet’s forecast of £3.32bn. Underlying revenue for the year rose 12% to £20.1bn.
Citing its strong balance sheet, the company also announced that a £2.5bn share buyback will be completed this year as part of a multi-year share buyback program worth between £7bn and £9bn.
