Rolls-Royce has today released its financial results for 2024, reporting an underlying operating profit of £2.5bn.
Following Rolls-Royce’s strong performance last year, which saw its earnings rise by 50%, the company announced it will pay a dividend of 6.0p per share. This will be the first time Rolls-Royce has paid a divident to shareholders since the COVID-19 pandemic disrupted its operations.
Rolls-Royce also upgraded its mid-term guidance and announced a £1bn share buyback to be completed in 2025 – another way of rewarding its shareholders.
Tufan Erginbilgic, CEO, said: “Strong 2024 results build on our progress last year, as we transform Rolls-Royce into a high-performing, competitive, resilient, and growing business. All core divisions delivered significantly improved performance, despite a supply chain environment that remains challenging.
We are moving with pace and intensity. Based on our 2025 guidance, we now expect to deliver underlying operating profit and free cash flow within the target ranges set at our Capital Markets Day, two years earlier than planned. Significantly improved performance and a stronger balance sheet gives us confidence to reinstate shareholder dividends and announce a £1bn share buyback in 2025.
Our upgraded mid-term targets include underlying operating profit of £3.6bn-£3.9bn and free cash flow of £4.2bn-£4.5bn. These mid-term targets are a milestone, not a destination, and we see strong growth prospects beyond the mid-term.”
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