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.

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.