UK’s Rolls-Royce expects profits to rise by 25% in ’24

UK’s Rolls-Royce has announced that its profits could increase by up to 25 per cent in 2024, surpassing expectations, Reuters reported on Thursday.

The company also forecasted an underlying operating profit between £1.7 billion and £2 billion for 2024 and free cash flow between £1.7 billion and £1.9 billion.

The company’s stock rose by nine per cent to 359 pence in early trading, reaching its highest level since 2018.

Under the leadership of CEO Tufan Erginbilgic, the company’s stock has surged by over 200 per cent as a result of cost-cutting measures and improved pricing strategies.

Last year, Rolls-Royce’s underlying operating profit reached £1.6 billion, exceeding analyst forecasts and the company’s own guidance.

Rolls-Royce has benefited from increased travel demand and is investing one billion pounds to improve its engines.

Additionally, the company is experiencing growth in data centres and defence spending due to geopolitical tensions.