British company Rolls-Royce earned 40% more profit over the year compared to the previous year.
The increase was mainly because its aircraft engines divisions performed remarkably well and demand for power in data centers went up, as per Reuters.
As a result of this strong performance, the company, which makes engines for Airbus A350 and Boeing 787 planes, was able to raise its future financial targets and pay more to its shareholders.
As per the outlet, Rolls-Royce announced that it will buy back its own shares worth £7 billion and £9 billion over the years 2026 to 2028.
On top of that, it will also pay shareholders a dividend of 9.5 pence per share for 2025 as well.
Plans introduced by Rolls-Royce's CEO, Tufan Erginbilgic, three years ago has been very successful throughout and improved the company's performance, the outlet further revealed.
Because of this remarkable success, analysts have repeatedly raised their expectations for the company and as a result, its stock price has more than doubled in the past years.
The company's CEO said in a statement, noting, "With our new capabilities and mindset, we have navigated challenges from supply chain to tariffs, and delivered a strong performance in 2025."
In 2025 alone, the company made an underlying operating profit of £3.46 billion, with a profit margin of 17.3% which was higher than analysts had expected.
