British aerospace group Rolls-Royce on Thursday posted stronger-than-expected full-year earnings after undertaking a “significant” transformation and declaring a £1 billion ($1.27 billion) share buyback.
Rolls-Royce, which manufactures jet engines for commercial aircraft along with power systems for ships and submarines, upgraded its mid-term guidance after it beat analyst expectations for 2024 by posting a 57% increase in annual profit.
The company also reinstated shareholder dividends and embarked on a £1 billion share repurchase program.
Shares of Rolls-Royce surged on the news, up by as much as 16% shortly after the opening bell to a 52-week high.
“We are two years into a multi-year transformation journey [and] we’ve made significant progress,” Helen McCabe, CFO of Rolls-Royce, told CNBC’s “Squawk Box Europe” on Thursday.
“It’s a culmination of us following through on our promises,” McCabe said, citing the engine-maker’s expanding earnings potential and improving balance sheet.
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