Should I buy Rolls-Royce stock in 2025?

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At HelloSafe, our experts have been tracking the performance of Rolls-Royce shares for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Rolls-Royce.

What Is Rolls-Royce?

How much is Rolls-Royce stock?

The price of Rolls-Royce stock is rising this week. As of now, the share trades at 942.4 GBX, marking a slight daily dip of -0.11%, but up 2.9% over the past week. The current market capitalization is £78.93 billion, with an average three-month trading volume of nearly 29 million shares. Rolls-Royce's P/E Ratio stands at 31.41, the dividend yield is 0.64%, and the beta is high at 1.88. This level of volatility suggests significant potential opportunities for investors prepared for price swings.

Our full analysis of the Rolls-Royce stock

We have thoroughly reviewed Rolls-Royce’s most recent financial results alongside the stock’s impressive multi-year performance. Combining proprietary analysis drawing from financial indicators, technical signals, market context, and peer benchmarks, our approach offers a comprehensive insight. So, why might Rolls-Royce stock once again become a strategic entry point into the aerospace and defence sector in 2025?

Recent performance and market context

Rolls-Royce shares have been a standout performer, surging an extraordinary 106.8% over the past twelve months, with a six-month gain of 61%. The current price rests at 942.4 GBX, just shy of recent highs and up 2.9% over the past week, signalling consistent positive momentum. Market capitalisation stands strong at £78.93 billion, underlining the group’s status as a heavyweight within the FTSE 100. Recent trading sessions reflect near-record average volume (28.9 million), highlighting sustained market interest.

The company continues to reap the benefits of robust air traffic growth and fleet renewal cycles post-pandemic. Key contract wins—such as the order for 20 Trent XWB-97 engines from AviLease for new Airbus A350F aircraft—showcase Rolls-Royce’s competitive position. Additionally, deeper partnerships in advanced cooling technologies with Reaction Engines, and a sharpened focus on sustainability, strategically reinforce its prospects.

From a macro perspective, the global surge in travel demand, government commitments to defence spending, and accelerating civil and green aviation investments present a fertile environment for Rolls-Royce. The group finds itself at the intersection of these powerful secular trends, with the resilience to thrive in the new cycle ahead.

Technical analysis

Technical signals currently present a positive setup. The RSI (14 days) sits in neutral territory at 49.26, providing ample room for further upside without risk of overbought pressure. While the MACD recently turned fractionally negative (-1.94), momentum indicators such as the stochastic (58.37) and multiple moving averages (especially the 20, 100, and 200-day MAs, all below the current price) remain supportive of a bullish structure. Notably, the shares remain securely above the main support level at 869.99 GBX.

Bullish reversal signals in recent weeks—such as strong closes around the upper end of the 52-week range—suggest robust institutional buying. The “strong buy” technical consensus is validated by the persistent upward trend in both volume and moving averages, implying that any near-term pullbacks could be seen as healthy consolidation phases within a longer uptrend.

Short- to medium-term momentum remains constructive; the convergence of technical supports near 900 GBX offers an appealing risk–reward profile for new positions and adds conviction for ongoing rallies.

Fundamental analysis

The growth story for Rolls-Royce is firmly intact. 2024 revenues rose 15% year on year, reaching £17.8 billion, with underlying operating profit surging to £2.46 billion, up 57% from 2023. Management expects operating profit and free cash flow to accelerate further, with 2025 guidance of £2.7–2.9 billion for each metric.

Profitability metrics stand out, with an EBITDA margin of 16.4%—a clear sign of improved operating leverage and effective cost control. Although the trailing P/E ratio is elevated at 31.41, forward growth in both earnings and cash flow provides support for these valuations. With earnings quality improving, risk is mitigated by recurring service revenues as well as ongoing cost discipline.

Structurally, Rolls-Royce retains several core advantages:

• Market leadership in wide-body aircraft engines.
• A globally diversified customer base, spanning both civil and defence sectors.
• Long-term aftermarket service contracts offering high-margin recurring revenues.
• Demonstrated technological leadership (e.g., UltraFan, small modular nuclear reactors).

This combination of innovation, market share, and resilient business segments underpins a compelling investment rationale, especially as end-markets remain strong.

Volume and liquidity

Market liquidity is robust, with an average three-month daily volume of 28.98 million shares—a clear indicator of persistent institutional and retail participation. The free float remains attractive for dynamic valuation, supporting tight bid–ask spreads and enabling sizable trades with minimal market impact.

Such liquidity not only ensures flexibility for portfolio managers but also reflects continuing investor confidence. This backdrop is ideal for those seeking to enter or adjust positions, supporting the case for renewed buying interest during technically favourable setups.

Catalysts and positive outlook

Looking ahead, Rolls-Royce benefits from multiple bullish catalysts:

• Participation in the next generation of narrow-body engine development, potentially unlocking a $1.6 trillion market opportunity.
• Acceleration in UltraFan advanced propulsion projects and strategic ESG-focused initiatives, such as small modular reactor development.
• Expansion of recurring revenues through aftermarket services and technology upgrades across its installed base.
• Strong order momentum, as evidenced by recent contract wins and increased partnership activity with global OEMs and technology firms.

Broader industry trends—the rebound in global air traffic, growing appetite for green aviation, and expanding defence budgets—further enhance the company’s long-term growth profile. With regulatory support for clean technologies and large-scale fleet replacements, Rolls-Royce is ideally placed to capitalise on these transformations.

Investment strategies

For short-term traders:

• Recent consolidations above key supports (900–920 GBX) suggest tactical trading opportunities ahead of quarterly results and newsflow on new contracts.
• Technical indicators hint at quick upside moves on volume spikes or positive momentum shifts.

For medium-term investors:

• 2025 profit guidance and the company’s strategic repositioning serve as significant upside drivers.
• Entering positions on technical pullbacks or ahead of confirmed catalysts, such as major order announcements, appears well supported by both fundamentals and sentiment.

For long-term investors:

• The transition toward green aviation and nuclear technologies ensures Rolls-Royce is well positioned for sustainable multi-year growth.
• Its dominant market share, innovation pipeline, and resilient business mix make it a strong compounder for patient capital.

Ideal positioning is seen at or just above key technical supports, particularly where upcoming catalysts and robust volume interplay to offer favourable risk–reward profiles.

Is it the right time to buy Rolls-Royce?

Rolls-Royce exhibits a unique set of strengths:

• Impressive revenue and profit growth, with continued positive operating momentum.
• A supportive technical backdrop, marked by bullish indicators and increased volume.
• Valuation justified by strong fundamentals and forward earnings potential.
• Strategic catalysts in product innovation, sustainability, and aftermarket expansion.
• Persistent market confidence, as seen in liquidity and institutional engagement.

Taken together, these features suggest Rolls-Royce may be entering a fresh bullish phase, with numerous levers to unlock further value. The current technical and fundamental alignment, alongside long-term growth drivers, seems to represent an excellent opportunity for attentive investors.

Rolls-Royce remains a dynamic stock, offering a compelling blend of short-, medium-, and long-term upside. For those seeking exposure to the next wave of aerospace and defence innovation, Rolls-Royce presents an ideal strategic entry point with substantial potential rewards in 2025 and beyond.

How to buy Rolls-Royce stock in the UK?

Buying Rolls-Royce stock online is both simple and secure when using a regulated UK broker. Investors have two main options: buying shares outright (spot investing) or trading via CFDs (contracts for difference), each with its own characteristics and fee structure. For a detailed broker comparison with specific fees and platforms, you’ll find a full comparison table further down the page.

Spot buying

A spot purchase means you buy Rolls-Royce shares directly, becoming a shareholder with voting rights and entitled to dividends if paid. Typically, UK brokers charge a fixed commission per order, usually between £5 and £10.

Gain scenario with Rolls-Royce shares

If the Rolls-Royce share price is £9.42, you can buy around 106 shares with a £1,000 stake, including a brokerage fee of around £5.

✔️ Gain scenario:

If the share price rises by 10%, your shares are now worth £1,100.

Result: +£100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFDs allow you to speculate on Rolls-Royce’s share price movements without owning the actual shares. With CFDs, fees are mainly the spread (difference between buy and sell price) and overnight financing if you hold positions open for several days.

CFD Position Gain Scenario with Leverage

You open a CFD position on Rolls-Royce shares, with 5x leverage.

This gives you a market exposure of £5,000 for just £1,000.

✔️ Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +£400 gain, on a stake of £1,000 (excluding fees).

Final advice

Before investing, it’s essential to compare broker fees, minimum deposit requirements, and available features to match your personal strategy. Ultimately, the right way to buy Rolls-Royce stock depends on your objectives—whether you prefer to invest for the long-term or seek leveraged trading opportunities. For more details, our comprehensive broker comparison can guide your choice further down the page.

Our 7 tips for buying Rolls-Royce stock

The latest news about Rolls-Royce

Rolls-Royce stock registers a weekly gain of nearly 3% as UK market momentum persists. Over the past seven days, Rolls-Royce shares rose by 2.9%, reaching 942.40 GBX. This reflects continued investor confidence and positive sentiment in the UK market, with the share price remaining close to its 52-week high and outperforming much of the London Stock Exchange over the equivalent period.

Analysts reaffirm a “Strong Buy” technical rating for Rolls-Royce driven by sector and internal factors. According to sector experts and technical analysis on 3 July 2025, current indicators including a robust MA20 and MA100, as well as a neutral RSI (49.26), reinforce the positive outlook. The consensus remains strongly in favour of further upward movement, indicating the stock’s technical structure is appealing for both short- and medium-term investors in Great Britain.

Recent financial results show sizeable revenue and profit growth year-on-year for UK-based operations. Rolls-Royce reported 2024 revenues of £17.8 billion, up 15% versus 2023, and underlying operating profit soared 57% to £2.46 billion. These figures exceeded analyst expectations and demonstrate the firm’s strengthening fundamentals, which is especially relevant for its UK industrial and technical workforce, supporting job creation and corporate tax contributions.

Major new engine orders and British-led innovation underpin strong demand for Rolls-Royce technology. A recent order by AviLease for 20 Trent XWB-97 engines for 10 Airbus A350F aircraft highlights ongoing demand for Rolls-Royce’s advanced propulsion systems. The company’s engineering and research, largely centred in the UK, continue to strengthen its competitive edge and export profile.

Strategic partnerships and R&D investments signal a sustained commitment to UK-led technological advancement. Rolls-Royce has expanded partnerships, notably with Reaction Engines on cutting-edge cooling technology, and is advancing projects in the critical small modular reactor segment. These initiatives confirm the company’s role at the forefront of British and global innovation, reinforcing long-term growth prospects that are of keen interest to UK investors and policymakers.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.