Rolls-Royce profits rise 40%, plans £9bn shareholder returns

In Brief

Rolls-Royce reports 40% profit increase and announces up to £9bn return to shareholders over three years.

Key Facts

• Rolls-Royce reported underlying profits of £3.5bn for 2025, up from £2.5bn the previous year
• The 40% profit increase is attributed to growing demand for power from datacentres
• The company plans to return up to £9bn to shareholders over the next three years through share buybacks
• This planned return represents the largest cash return to investors in Rolls-Royce's history
• The profit growth is part of a broader turnaround in Rolls-Royce's business performance

What Happened

Rolls-Royce announced a 40% increase in underlying profits for 2025, reaching £3.5bn, driven by increased demand for datacentre power. The company also revealed plans to return up to £9bn to shareholders over the next three years through share buybacks, marking its largest investor cash return to date. This financial performance is seen as part of the company's ongoing business turnaround.

Why It Matters

The significant profit growth and large shareholder returns indicate improved financial health for Rolls-Royce, potentially increasing investor confidence. The demand for datacentre power highlights the growing importance of technology infrastructure in the company's revenue streams. These developments may influence Rolls-Royce's market position and investment attractiveness in the engineering sector.