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Rolls-Royce Announces Strong 2024 Results, Resumes Dividends and £1bn Share Buyback

The British engine-maker reported a 55% rise in annual profit, upgraded mid-term targets, and reinstated shareholder rewards after a strong post-pandemic recovery.

A BR700-725 jet engine is seen at the assembly line of the Rolls-Royce Germany plant in Dahlewitz near Berlin, Germany, February 28, 2023. REUTERS/Nadja Wohlleben/File Photo
Rolls Royce, heavily dependent on income from contracts tied to commercial aircraft engine flying hours, was brought to its knees during the lockdowns and groundings during the pandemic
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Overview

  • Rolls-Royce's 2024 underlying operating profit rose 55% to £2.5 billion, surpassing expectations and driven by higher demand for widebody jet engines and cost-saving measures.
  • The company generated £2.4 billion in free cash flow, nearly doubling the previous year, and swung to a net cash position of £475 million from £2 billion in net debt in 2023.
  • Shareholders will receive a 6p per share dividend, the first payout since 2019, alongside a £1 billion share buyback program set for 2025.
  • CEO Tufan Erginbilgic highlighted the company's accelerated transformation, with mid-term profit targets now expected to be met two years earlier than planned, despite ongoing supply chain challenges.
  • Rolls-Royce credits its turnaround to restructuring efforts, increased airline engine flying hours, and growth in its defense division, including submarine facilities expansion in the UK.