Rolls-Royce Reports Strong H1 2025, Boosted by Defense Contracts and Share Buyback
Rolls-Royce has reported a strong first half of 2025, with significant increases in revenue and profit. The company also announced a substantial share buyback program and a major contract with the British Ministry of Defense.
Rolls-Royce's civil aviation division led the growth, with revenue increasing by 17 percent to £4.79 billion. The company's operating margin soared to 19.1 percent, with operating profit jumping by 50 percent to £1.73 billion. Rolls-Royce raised its forecast for operating profit in 2025 to £3.1 to £3.2 billion.
The company initiated a one-billion-pound share buyback program and announced an interim dividend of 4.5 pence per share. Rolls-Royce also secured a nine-billion-pound contract with the British Ministry of Defense for nuclear reactors over eight years. This contract, along with the 'Unity' contract, which is the largest in the company's history, has significantly boosted Rolls-Royce's prospects.
Rolls-Royce's robust performance in the first half of 2025, coupled with its strategic investments and major contract wins, positions the company strongly for the remainder of the year and beyond. The company's shares are expected to remain in focus among investors.
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