Rolls-Royce Shares Hit Record High on 40 Percent Profit Jump

Rolls-Royce Holdings plc has announced a 40% increase in annual profit, driven by a strong recovery in the aviation sector and the rapid expansion of its data centre business. This performance has propelled the company's shares to record highs in the United Kingdom, with the stock rising 6% to 1,383 pence. Under the leadership of CEO Tufan Erginbilgic, the group has undergone a fundamental overhaul, leading to upgraded financial forecasts and a planned share buyback of between 7 billion and 9 billion pounds for the 2026-2028 period.

The company's civil aerospace division, which supplies engines for the Airbus SE A350 and The Boeing Company 787, saw significant growth as global flight hours increased and engine durability improved. Meanwhile, the power systems unit benefited from the global build-out of data centres and increased military spending on naval systems. Erginbilgic also highlighted future growth opportunities in the narrow-body aircraft market and the development of small modular nuclear reactors designed to help decarbonise power grids.