Shares in Rolls-Royce (RR.) surged to a new 52-week high of 792p (3 March) as the aero-engine maker continued to impress investors with its post-pandemic turnaround.

Under the helm of chief executive Tufan Erginbilgic, who was appointed in January 2023, the company has made a steady recovery and recently report stronger-than-forecast full year results.

On 27 February, the Derby-headquartered company reported a 15.8% jump in revenue to £17.85 billion and a 57% surge in underlying operating profit to £2.5 billion driven by strategic initiatives and cost efficiencies.

In addition, the company announced a £1 billion share buyback and reinstated its dividend – a welcome relief to shareholders after a five-year wait.

With full-year 2025 guidance pointing to underlying operating profit and FCF (free cash flow) in the £2.7 billion to £2.9 billion range two years earlier than planned (2027), what next for the engine-maker?

Rolls-Royce is making solid progress with orders across all its businesses including for small modular reactors and submarines.

While it has exposure to the defence sector, the recovery in air travel and the increase in passenger numbers post-pandemic has meant a strong recovery in trading for the civil aerospace business and by extension for Rolls’ servicing division.

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