Rolls-Royce Lifts Profit Goal, Sets £1 Billion Stock Buyback

Rolls-Royce Holdings Plc raised its profit guidance, reinstated a dividend and said it plans to buy back £1 billion ($1.27 billion) of stock, as the aircraft engine maker seeks to extend a two-year turnaround.

The shares surged the most intraday since July 2023 after Rolls said Thursday that adjusted operating profit for this year will be in the range of £2.7 billion to £2.9 billion. That’s an increase from the £2.5 billion-£2.8 billion it forecast in August, and above consensus estimates. The dividend, its first since before the start of the Covid-19 pandemic, was set at 6 pence per share.