Core Insights - Rolls-Royce reported a 40% increase in annual profit, driven by strong performance in its aero-engines division, allowing for upgraded mid-term targets and increased shareholder returns [1] - The company announced a share buyback program valued between £7 billion ($9.49 billion) and £9 billion over the period from 2026 to 2028, alongside a final dividend payout of 5 pence per share [1] - The transformation plan initiated by CEO Tufan Erginbilgic three years ago has led to significant improvements, with shares more than doubling in the past year [1] Financial Performance - For 2025, Rolls-Royce reported an underlying operating profit of £3.46 billion, exceeding the consensus estimate of £3.27 billion, with an operating margin of 17.3% [1] - The company provided guidance for 2026, projecting an underlying operating profit between £4 billion and £4.2 billion, which is at least 8% higher than current analyst forecasts [1] - The mid-term guidance includes an underlying operating profit target of £4.9 billion to £5.2 billion and an operating margin of 18-20% [1] Business Developments - The power systems segment is benefiting from the rapid construction of data centers, contributing to the overall strong performance of the company [1] - CEO Tufan Erginbilgic highlighted the company's ability to navigate challenges such as supply chain issues and tariffs, which has supported its robust performance in 2025 [1]