Rolls-Royce's 2023 profits more than double, resulting in an 8% increase in share price.

• In 2023, Rolls-Royce, a company that produces jet engines for commercial aircraft and power systems for ships and submarines, reported an underlying operating profit of £1.6 billion ($2 billion), which was a significant increase from the £652 million profit recorded in 2022.
• In 2023, Rolls-Royce was the top performer in Britain's FTSE 100, with profits forecast to quadruple by 2027, resulting in a 200% increase.

The British aerospace group's shares surged more than 8% on Thursday after it announced that it had more than doubled its annual profits in 2023 and predicted continued growth this year.

In 2023, Rolls-Royce, a company that produces jet engines for commercial aircraft and power systems for ships and submarines, reported an underlying operating profit of £1.6 billion ($2 billion), which was a significant increase from the £652 million profit recorded in 2022.

The group reported a record free cash flow of £1.3 billion due to strong operating profit and continued growth of its LTSA book.

The company's return on capital more than doubled to 11.3%, while its net debt decreased from £3.3 billion to £2 billion at the end of 2022.

In 2023, our transformation resulted in a record performance, thanks to commercial optimization, cost savings, and advancements in our strategic initiatives, as stated by CEO Tufan Erginbilgic.

Despite a volatile environment with geopolitical uncertainty, supply chain challenges, and inflationary pressures, we have successfully implemented this step-change across all our divisions.

The group anticipates an annual operating profit growth of at least 6% in 2024, with free cash flow ranging from £1.7 billion to £1.9 billion.

In 2023, Rolls-Royce was the top performer in Britain's FTSE 100, with profits forecast to quadruple by 2027, resulting in a 200% increase.

Erginbilgic stated that our successful delivery in 2023 has given us confidence in our 2024 guidance and is a crucial step towards achieving our mid-term objectives.

As a high-performing, competitive, resilient, and growing Rolls-Royce, we are unlocking our full potential.

Quilter Cheviot's equity research analyst, Jarek Pominkiewicz, stated that Rolls-Royce's full-year results were impressive, with its Power Systems and Defence segments exceeding expectations and showing strong growth.