Farnborough, UK – Rolls-Royce, a British aerospace group, reported robust financial performance on Thursday, surpassing market expectations for full-year earnings. The company announced an operating profit of £2.46 billion in 2024, marking a 57% increase from the previous year.

The strong delivery in 2023 and 2024 led Rolls-Royce to enhance its mid-term guidance, projecting an operating profit between £3.6 billion and £3.9 billion. Along with the positive financial results, the company declared a £1 billion share buyback and a dividend of 6 pence per share, reinstating the payout after a five-year hiatus.

Investors reacted positively to the news, with Rolls-Royce’s stock price surging by as much as 16% and hitting a new 52-week high. The company’s shares led gains on the pan-European Stoxx 600 index, trading up around 15.3% at 9:03 a.m. London time.

Helen McCabe, CFO of Rolls-Royce, attributed the success to a multi-year transformation journey, highlighting the engine-maker’s expanding earnings potential and improving balance sheet. The company’s strategic initiatives and commitment to fulfilling promises have contributed to its significant progress in recent years.

In a statement to CNBC’s “Squawk Box Europe,” McCabe emphasized the importance of following through on commitments and the positive impact it has had on Rolls-Royce’s financial performance. The company’s focus on growth and financial stability has resonated with investors, driving up the stock price and setting the stage for continued success in the future.

Overall, Rolls-Royce’s strong financial results, share buyback, and dividend reinstatement signal a promising outlook for the company as it continues its transformation journey and delivers on its strategic objectives. Investors and industry analysts alike are optimistic about the company’s growth prospects and its ability to capitalize on emerging opportunities in the aerospace and power systems sectors.