Rolls-Royce Profits Surge 38% as Company Unveils Massive Buyback Plan

Rolls-Royce reported a significant financial turnaround for 2025, with revenues climbing 14% to reach £20.1 billion. Operating profit surged by 38% to £3.5 billion, bolstered by a robust free cash flow of £3.3 billion. This performance underscores the successful execution of a transformation strategy across all divisions, leading to substantial margin expansion. In a major move to reward shareholders, the company announced an aggressive share buyback program valued between £7 billion and £9 billion through 2028. Additionally, the reinstatement of dividends signals management's confidence in the company's long-term financial health. Analysts view the buyback plan, which targets a 10% reduction in share count, as a strong bullish catalyst for the industrial giant.