Rolls-Royce Announces Strong 2024 Results, Dividend Return

Rolls-Royce shares surged by approximately 16% following the announcement of robust 2024 trading results and the resumption of dividend payments for the first time since the pandemic. The company reported a significant increase in statutory revenues and operating profit, with the latter rising by 49.5% to £2.9 billion. Rolls-Royce also announced a £1 billion share buyback program and upgraded its mid-term financial targets, projecting an accelerated timeline for achieving these goals. The firm attributed its strong performance to a post-pandemic recovery in the airline sector, restructuring efforts under CEO Tufan Erginbilgic, and improved balance sheet figures, including a swing to a net cash position. Despite the challenging supply chain environment, the company managed to improve all core divisions and aims for further growth beyond the mid-term targets. Rolls-Royce's strategic moves signify a remarkable turnaround since the financial hits during the Covid-19 crisis.