- Rolls-Royce reports £3.46 billion operating profit for 2025.
- Company plans £7 billion–£9 billion share buyback between 2026 and 2028.
- Mid-term profit target raised to as much as £5.2 billion.
Rolls-Royce has posted a 40 per cent rise in annual profit, helped by a strong performance in its aero-engines division and rising power demand linked to data centres. The British engineering group said the improved results allow it to upgrade its medium-term targets and return more cash to shareholders.
The Rolls-Royce results for 2025 come as the company continues a turnaround drive under chief executive Tufan Erginbilgic. Its engines power Airbus A350 widebody jets and Boeing 787 aircraft, placing it at the heart of the long-haul aviation market.
For 2025, Rolls-Royce reported underlying operating profit of £3.46 billion, with a margin of 17.3 per cent. That was ahead of market expectations of around £3.27 billion.
Alongside the results, the company announced plans for a share buyback worth between £7 billion and £9 billion over the period from 2026 to 2028. It also confirmed the return of a dividend for 2025, set at 9.5 pence per share.
Erginbilgic said the group had built “new capabilities and mindset” and had managed challenges ranging from supply chain pressures to tariffs, as quoted in a news report. He added that the company delivered a strong performance in 2025.
Since taking over in 2023, Erginbilgic has focused on lifting margins and tightening operations. Rolls-Royce shares have more than doubled over the past 12 months, reflecting investor confidence in the turnaround strategy.
Data centres and flying hours drive growth
The company said its power systems business benefited from the rapid build-out of data centres, which require reliable energy solutions. At the same time, its aero-engines division grew as airlines increased flying hours and Rolls-Royce worked to improve engine durability.
Looking ahead, the group guided to mid-term underlying operating profit of between £4.9 billion and £5.2 billion, with an operating margin of 18 per cent to 20 per cent. For 2026 alone, it expects profit of between £4 billion and £4.2 billion, which analysts at Bernstein reportedly said is at least 8 per cent above current forecasts.
At those margin levels, Rolls-Royce would be broadly in line with GE Aerospace, its main rival in the widebody aero-engine market.
Whether demand for long-haul travel and data centre infrastructure remains as strong will likely shape the next phase of growth. For now, the company appears to be positioning itself for steadier cash generation and higher shareholder returns.
