Rolls-Royce Reports Strong First Half Results, Raises Profit Guidance

Rolls-Royce, the British aerospace and defense company, has reported strong first-half results and raised its profit guidance for the full year 2024.

The company reported underlying profit of £1.1 billion ($1.4 billion) in the first half of the year, a significant increase from the £673 million reported in the same period last year. Rolls-Royce attributed the strong results to a recovery in the aviation industry, cost-cutting measures, and a focus on operational efficiency.

Rolls-Royce raises profit guidance

Rolls-Royce has also raised its profit guidance for the full year 2024. The company now expects underlying operating profit to be between £2.1 billion and £2.3 billion, up from the previous guidance of £1.7 billion to £2.0 billion.

The revised guidance reflects the company's confidence in its recovery and its ability to deliver on its turnaround plan.

Rolls-Royce reinstates dividend

In a further sign of confidence, Rolls-Royce has announced that it will reinstate dividends for the full year 2024. The dividend will start at a 30% pay-out ratio of underlying profit after tax.

The reinstatement of the dividend is a major milestone for Rolls-Royce, as it marks the first time the company has paid a dividend since 2020, when the pandemic brought the aviation industry to a standstill.

Shares of Rolls-Royce jump

Shares of Rolls-Royce jumped more than 11% in early trading on the news of the strong results and the dividend reinstatement. The stock closed the day up 8.8% at 501 pence, an all-time high.

The strong results and the reinstatement of the dividend are a major boost for Rolls-Royce and its investors. The company appears to be on track to deliver on its turnaround plan and is well-positioned to benefit from the recovery in the aviation industry.

Rolls-Royce's Recovery Continues

Rolls-Royce's strong first-half results are a continuation of the company's recovery from the pandemic. The company has been implementing a number of cost-cutting measures and has been focused on improving its operational efficiency.

These measures have helped to improve Rolls-Royce's financial performance and have positioned the company to benefit from the recovery in the aviation industry.

The reinstatement of the dividend is a major milestone for Rolls-Royce and is a sign of the company's confidence in its future.

Rolls-Royce Well-Positioned for Future Growth

Rolls-Royce is well-positioned for future growth. The company has a strong order book and is benefiting from the recovery in the aviation industry.

The company is also investing in new technologies, such as electric and hybrid aircraft, which are expected to be major growth drivers in the coming years.

With its strong financial performance, its focus on innovation, and its well-positioned in the aviation industry, Rolls-Royce is well-positioned for future growth.