Rolls-Royce has announced a substantial increase in its annual profit for the previous year, surpassing expectations. The company anticipates a further surge in 2024, attributing it to increased flight activity of aircraft equipped with its engines, improvements in its power business and a continuous influx of defence orders.
In 2023, the group's underlying operating profit reached £1.6 billion, significantly exceeding both the analyst forecast of £1.4 billion and Rolls-Royce's own guidance of £1.2 billion to £1.4 billion. This marks a considerable leap from the £652 million profit reported in 2022.
Looking ahead to the current year, Rolls-Royce forecasts a minimum 6% increase in underlying operating profit, projecting a range between £1.7 billion and £2 billion. This forecast exceeds the current consensus forecast of £1.7 billion.
Rolls-Royce, known for powering ships, submarines, manufacturing power generation systems and producing engines for large commercial aircraft, has experienced robust growth under the leadership of Tufan Erginbilgic, the former BP executive who assumed the helm a year ago.
