Rolls-Royce reported full-year revenue of £20.1bn (£19.9bn expected), up 14% on an organic basis. All three core divisions were in growth territory.
Underlying operating profit soared 38% higher to £3.5bn (£3.3bn expected) . Profitability improved across all divisions, with a particularly strong uplift in Power Systems driven by scale benefits and a favourable product mix.
Free cash flow rose by £0.8bn to £3.3bn. The net cash position improved from £0.5bn to £1.9bn.
In 2026, underlying operating profits are expected to land between £4.0-4.2bn, 11% ahead of market expectations.
Mid-term (2028) guidance has been upgraded, with underlying operating profits and free cash flow expected to reach £4.9-5.2bn and £5.0-5.3bn respectively. Both measures were ahead of expectations.
A final dividend of 5p takes the full-year total up by 58% to 9.5p. A new three-year £7-9bn share buyback programme was announced.
The shares rose 6.2% in early trading.
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Rolls-Royce key facts
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