The transformation of Rolls-Royce continues with pace and intensity. We announced half-year results this morning showing a strong start to 2024 with improved financial performance delivered by all of our businesses, in a challenging supply chain environment.
Our clear strategy, as set out at last year’s Capital Markets Day, means we are more aligned and focused than ever and you can see the impact of our multi-year transformation programme in this performance:
High-performing – underlying operating profit of £1.1bn, a year-on-year increase of 74%.
Competitive – operating margin of 14%, up 4.4 points year-on-year. This reflects the impact of our strategic initiatives, with commercial optimisation and cost efficiency benefits across the Group.
Resilient – return on capital of 13.8%, up 4.8 points year-on-year, represents significant value creation.
Growing – free cash flow of £1.2bn, a year-on-year increase of 225%.
As a result of this strong performance we have raised our guidance for the full year. We also shared some important news with the market today: for the first time in five years, we have announced our intention to reinstate shareholder distributions in respect of our full 2024 results. This marks an important moment for our shareholders and future investors.
These results are further evidence that we are unlocking our potential and transforming Rolls-Royce into a high-performing, competitive, resilient and growing business.
The full details of our strong first half delivery can be found here : https://lnkd.in/e4sMf5Q4