Rolls-Royce Holdings Plc on Thursday lifted mid-term guidance and unveiled a £1bn share buyback as annual profits jumped, driven by its civil aerospace unit.
The company said it expects to deliver 2025 underlying operating profit of £2.7bn-£2.9bn and free cash flow £2.7bn-£2.9bn, two years earlier than planned. Annual operating profit last year surged to £2.9bn from £1.94bn.
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," said chief executive Tufan Erginbilgic.
Reporting by Frank Prenesti for Sharecast.com