Shares of the British luxury car manufacturer Rolls-Royce jumped more than 16% during trading on Thursday, reaching an all-time high of 740 pence following the announcement of its quarterly results, which included its first dividend in 5 years, as well as a share buyback program.
According to the earnings report, Rolls-Royce’s revenue increased by 15.6% during 2024 compared to 2023, reaching 17.4 billion pounds, with operating profits rising by 55% to 2.5 billion pounds.
Rolls-Royce – which is also the exclusive engine partner for European aircraft manufacturer Airbus for its wide-body planes and supplier of engines for Boeing 787 models offered by American manufacturer Boeing – stated that the strong profits come as a result of cost savings, in addition to adjustments made to ensure that engines can operate longer before maintenance.
Additionally, Rolls-Royce announced the completion of a share buyback program valued at one billion pounds over the course of 2025, and it stated that it will distribute a dividend of 6 pence per share for the year 2024, to be paid on June 16.
At the same time, Rolls-Royce – which also operates ships and submarines and manufactures power generation systems – indicated that it expects operating profits in 2025 to range between 2.7 billion and 2.9 billion pounds, noting that it will achieve its previous mid-term targets this year, two years ahead of schedule.
In terms of trading, Rolls-Royce shares (RR.L) rose by 15.7%, trading now at 728 pence after hitting 740 pence earlier in the session, the highest level ever recorded for the stock.
Over the past year, Rolls-Royce shares have increased by 13.80%, while the company's market value has more than doubled since the appointment of former BP CEO, Turkish national, Tufan Erginbilgic, as CEO of Rolls-Royce in January 2023, with its shares having risen more than five times since his takeover.
