Future Of British Business

Rolls-Royce Surges After CEO Vows Higher Returns in Revamp

CEO says company has underperformed financially for years
Rolls-Royce has identified seven areas of strategic focus

WATCH: Rolls-Royce is among the stocks to watch in Europe today. Joe Easton explains.

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By Siddharth Philip

February 23, 2023 at 7:20 AM UTC

Updated on

February 23, 2023 at 10:15 AM UTC

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Rolls-Royce Holdings Plc surged the most in more than two years after new Chief Executive Officer Tufan Erginbilgic embarked on a strategic review, saying the UK engineering firm has underperformed financially for years.

The stock jumped as much as 20%, the most since Nov. 2020. Rolls-Royce also reported earnings that beat estimates, with adjusted operating income coming in at £652 million for last year, above the £489 million analyst estimate. The company predicted adjusted operating profit of £800 million to £1 billion this year, with free cash flow of as much as £800 million.