By Mucahithan Avcioglu
ISTANBUL (AA) - British company Rolls-Royce, which operates in civil aviation, defense, power systems and nuclear energy, increased its profit by 40% last year to £3.5 billion ($4.73 billion).
The company’s profit was partly driven by strong performance in its aircraft engines unit, while revenues totaled £20.05 billion ($27 billion) last year, according to the firm's financial results released Thursday.
The firm's operating margin rose to 17.3% last year from 13.8% in 2024.
Rolls-Royce set its 2026 underlying operating profit guidance at £4-4.2 billion ($5.4-$5.7 billion), while revising its 2028 mid-term target upward to £4.9–5.2 billion.
Following the completion of its £1 billion ($1.4 billion) share buyback program in 2025, Rolls-Royce also announced its first multi-year share buyback program for the 2026–2028 period, totaling £7–9 billion ($9.5-12.2 billion).
In his assessment of the results, Rolls-Royce CEO Tufan Erginbilgic said the company’s transformation is continuing at pace and intensity, adding: “We are consistently achieving outcomes that were not possible before our transformation. With our new capabilities and mindset, we have navigated challenges from supply chain to tariffs, and delivered a strong performance in 2025, all while we built the foundations for significant growth for years to come."
He stated that they expect to reach the previously announced mid-term underlying operating profit target range two years ahead of plan.
"Our upgraded mid-term targets include underlying operating profit of £4.9bn-£5.2bn and free cash flow of £5.0bn-£5.3bn. Beyond the mid-term, we continue to see significant growth from existing businesses as well as from new business opportunities. With a strong balance sheet, significant investment to support our long-term growth, and confidence in the future, we are announcing a £7bn-£9bn share buyback for 2026-2028 with £2.5bn to be completed this year," Erginbilgic added.