Rolls-Royce Raises 2028 Profit Goal to £5.2 Billion, Launches £9 Billion Buyback

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Rolls-Royce raised its medium-term operating profit target to £5.2 billion by 2028 and initiated a multiyear buyback plan of up to £9 billion. The aero-engine maker reported a 40% jump in 2025 underlying operating profit to £3.5 billion on 13% revenue growth to £20.1 billion.

1. Strong 2025 Financial Performance

Rolls-Royce posted underlying operating profit of £3.5 billion in 2025, a 40% increase over the prior year, as operating margins rose to 17.3% from 13.8% and revenue climbed 13% to £20.1 billion.

2. Upgrade of Medium-Term Profit Targets

The company raised its 2028 underlying operating profit target to £5.2 billion and forecasts 2026 profit of £4–4.2 billion, underscoring confidence in a strong order backlog and continued cost discipline.

3. Multiyear Shareholder Return Program

Management unveiled a buyback plan of up to £9 billion over the next few years, leveraging robust cash flow and a strengthened balance sheet after consecutive years of margin improvement.

Sources

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