Rolls-Royce has lifted its mid-term guidance after reporting strong growth in revenue and earnings per share across 2024.
Underlying full-year revenue was UK£17.85 billion (A$36.071 billion), up from £15.41 billion in 2023.
“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,” said Rolls-Royce CEO Tufan Erginbilgic.
The company’s underlying basic earnings per share were UK£0.2029 in 2024, rising from £0.1375 the previous year. Operating profit was £2.46 billion, above £1.59 billion in 2023.
Its free cash flow was UK£2.43 billion, increasing from £1.29 billion year-over-year.
Rolls-Royce’s Civil Aerospace division, its largest, saw underlying revenue grow by 24% to UK£9.04 billion across 2024.
Revenue for its Defence and Power Systems divisions rose by 13% and 11%, respectively.
The company’s 2025 guidance includes an operating profit of UK£2.7-2.9 billion. Its mid-term guidance has been upgraded to an operating profit of £3.6-3.9 billion, and Rolls-Royce expects to meet its targets set out in 2023 two years earlier than planned.
“These mid-term targets are a milestone, not a destination, and we see strong growth prospects beyond the mid-term,” said Erginbilgic.
Rolls-Royce announced a dividend of UK£0.06 per share, its first in five years, and said it would repurchase £1 billion in shares this year.
Rolls-Royce’s (LSE: RR) share price closed at UK£731.60, surging 15.94% over its previous close at £631.00. Its market capitalisation is £62.22 billion.
