Its new medium-term ambitions are for £3.6 billion-£3.9 billion of underlying operating profit, 15%-17% operating margin and £4.2 billion-£4.5 billion in free cash flow.
Guidance for this year of £2.7 billion-£2.9 billion in terms of both underlying operating profit and free cash flow meets the company’s mid-term targets two years earlier than planned.
Significant growth in margins meant underlying operating profit rose from £1.6 billion in 2023 to £2.5 billion in 2024, a 57% increase.
A much stronger balance sheet means the engine maker is set to pay 6p a share, equivalent to 30% of underlying profit after tax in today’s annual results.
Rolls-Royce today announced its first dividend in five years, alongside a £1 billion share buyback and upgraded mid-term guidance.
