Rolls-Royce boosts outlook as profit jumps 40%, beating estimates

Core Viewpoint - Rolls-Royce expects profits exceeding £4 billion ($5.42 billion) this year, driven by robust growth in the aerospace sector [1] Group 1: Financial Performance - The company targets underlying operating profit between £4 billion and £4.2 billion in 2026, surpassing the analyst expectation of £3.65 billion [1] - Expected free cash flow for this year is between £3.6 billion and £3.8 billion, also above market expectations [1] Group 2: Strategic Outlook - The company anticipates achieving its mid-term profit targets two years earlier than initially planned, as stated by CEO Tufan Erginbilgic [2] - Rolls-Royce has revised its 2028 targets to an underlying operating profit of £4.9 billion to £5.2 billion, with an operating margin of 18% to 20%, and free cash flow of £5 billion to £5.3 billion [2] Group 3: Market Performance - Rolls-Royce shares have more than doubled in the past 12 months, reflecting the success of the transformation plan initiated by CEO Erginbilgic, which has enhanced investor confidence [3]