Rolls-Royce: Buy As The Dividend And Buyback Engine Starts Spinning
Summary
Rolls-Royce delivered robust FY results, with 14% revenue growth, 38% operating profit growth, and significant margin expansion.
Mid-term targets have been upgraded: operating profit is now guided at £4.9–£5.2B and free cash flow at £5–£5.3B, reflecting strong execution.
Despite a reduced 2027 price target of $17.89, I remain bullish due to resilient end-market growth and a pivot to shareholder returns.
Rolls-Royce is positioned for long-term value creation, with substantial cash returns, debt reduction, and potential for increased dividends as share count declines.
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Rolls-Royce (RYCEF, RYCEY) posted its full-year earnings, which included an upgrade to the company’s growth expectations. Since my last report, the stock price has increased 4.6%, once again outperforming the
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This article was written by
Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.
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