Core Viewpoint - The UK government has backed Rolls-Royce to build the country's first small modular nuclear reactors (SMRs), marking a significant shift towards nuclear energy and investment in energy security [1][2][3]. Group 1: Government Support and Investment - The UK government will invest £14.2 billion ($19.2 billion) to construct the Sizewell C power station, reinforcing its commitment to nuclear power [2]. - The decision to support SMRs is part of a broader strategy to enhance energy security and create jobs, with the potential to support up to 3,000 jobs [2][3]. Group 2: Industry Impact - Rolls-Royce views the government's decision as a "very significant milestone" for its SMR business, indicating strong future growth prospects [4]. - The SMRs are expected to power approximately 3 million homes once operational in the mid-2030s, contributing to the UK's energy landscape [3].

Core Viewpoint - Rolls-Royce Holdings Plc reported stronger-than-expected full-year earnings, driven by a significant transformation and a £1 billion ($1.27 billion) share buyback program [1][2]. Financial Performance - Rolls-Royce experienced a 57% increase in annual profit, surpassing analyst expectations for 2024 [2]. - The company reinstated shareholder dividends alongside the announcement of the £1 billion share repurchase program [2]. Strategic Transformation - The company is two years into a multi-year transformation journey, with significant progress noted by the CFO, Helen McCabe [3]. - The transformation is seen as a culmination of the company's commitment to improving its earnings potential and balance sheet [3]. Market Reaction - Following the announcement, Rolls-Royce shares surged by as much as 16%, reaching a 52-week high shortly after the market opened [2].