Rolls-Royce share price hits record high

The share price at Rolls-Royce hit record highs on Thursday(February 27) after strong results released earlier in the day.

At close of trading, shares in the Derby manufacturer were changing hands for over 728p – up over 15.4% on their opening price. The hike saw the company’s marketing capitalisation rise to £61.9bn.

Earlier on Thursday, Rolls-Royce revealed its 2024 results, which showed underlying profit rose from £1.26bn to £2.29bn last year. The business is forecasting its 2025 adjusted operating profit to come in between £2.7bn and £2.9bn.

The firm has upgraded its mid-term operating profit targets to between £3.6bn-£3.9bn and has launched a £1bn share buyback that will start immediately.

Tufan Erginbilgic, CEO, said Rolls-Royce is now moving “with pace and intensity”.

AJ Bell investment director Russ Mould said: ““There was always a risk that Rolls-Royce’s recovery story would lose momentum as it runs out of easy wins. Its latest results and upgraded guidance show that is not the case.

“It’s no longer about stabilising the business; the narrative has shifted to growth and Rolls-Royce is making solid progress. A £1 billion share buyback is akin to Rolls-Royce sticking its head out the window of a moving car on a warm summer’s day, enjoying the ride and knowing everything is going well.

“The company is ahead with its targets for operating profit and free cash flow, which is impressive. Orders are piling up for areas like small modular reactors and submarines. It continues to invest in the business to grow capacity, capture more business in the future and most importantly, make its products more useful for customers. This includes a new blade which should last longer and upgrading an engine to improve fuel efficiency.

“It expects bigger profit margins across its core markets of civil aerospace, defence and power systems.

“Rolls-Royce is delivering every bit of good news imaginable, and it’s no wonder the share price has hit a new record high.”