Should I buy Rolls-Royce stock in 2025?
Is Rolls-Royce stock a buy right now?
Rolls-Royce Holdings plc, a flagship of British engineering, is currently trading at approximately 784p per share (as of May 2, 2025), with a robust average daily trading volume of nearly 34 million shares—a testament to sustained investor attention. The company’s recent trading update highlighted a pattern of solid growth across all business lines, notably in Civil Aerospace where large engine flying hours now exceed pre-pandemic levels, and Defence, which continues to report healthy order flow. The certification of new, more efficient engine technologies and strides in Small Modular Reactors position Rolls-Royce at the forefront of next-generation power and propulsion solutions. Recent credit rating upgrades and the execution of a £1bn share buyback underline strengthened financial stability. Technical analysis shows Rolls-Royce’s share price above all crucial moving averages, suggesting continued market confidence, even as certain short-term indicators hint at overbought levels. Amid a dynamic aerospace and defence sector, sentiment remains constructive and forward-looking. Consensus among over 33 national and international banks has set a target price of 1,019p, reflecting widespread optimism about Rolls-Royce’s medium-term prospects as it leverages innovation and rising global demand.
- Strong year-on-year share price growth and outperformance in the FTSE 100.
- Robust balance sheet with recent credit rating upgrades by top agencies.
- Leading innovations in both civil aerospace and nuclear SMRs.
- Large and growing order book in Defence and Power Systems segments.
- Major share buyback and consistent guidance signal management confidence.
- Short-term technical signals indicate near-term price consolidation possible.
- Ongoing supply chain and tariff uncertainties may affect future margins.
- What is Rolls-Royce?
- How much is Rolls-Royce stock?
- Our full analysis on Rolls-Royce </b>stock
- How to buy Rolls-Royce stock in United Kingdom?
- Our 7 tips for buying Rolls-Royce stock
- The latest news about Rolls-Royce
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Rolls-Royce's performance for more than three years. Every month, hundreds of thousands of users in the United Kingdom rely on us to interpret market trends and highlight the most promising investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our code of ethics, we have never, and will never, receive payment from Rolls-Royce.
What is Rolls-Royce?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | British | UK heritage strengthens position in global aerospace and defense markets. |
| 💼 Market | London Stock Exchange (Ticker: RR) | Shares listed on the LSE, ensuring high liquidity for UK-based investors. |
| 🏛️ ISIN code | GB00B63H8491 | Unique identifier for secure trading and regulatory compliance. |
| 👤 CEO | Tufan Erginbilgic | CEO since 2023; driving successful business transformation and operational improvements. |
| 🏢 Market cap | £65.6 billion | Large-cap status reflects robust growth and renewed investor confidence in the turnaround. |
| 📈 Revenue | £17.8 billion (2024) | Revenue growth from all divisions signals strong demand and business momentum. |
| 💹 EBITDA | £2.46 billion (2024, underlying op. profit) | Operating profit margin improvement highlights better cost control and asset utilisation. |
| 📊 P/E Ratio (Price/Earnings) | 26.13 | Valuation above industry average; reflects strong growth expectations but potential premium. |
How much is Rolls-Royce stock?
The price of Rolls-Royce stock is rising this week. Rolls-Royce shares are currently trading at 784.00p, marking a 2.22% increase over the past 24 hours and a robust 3.79% gain for the week. The company’s market capitalization stands at approximately £65.6 billion, with an average daily trading volume of 33.88 million shares over the last three months. Rolls-Royce has a P/E ratio of 26.13, offers a 0.77% dividend yield, and carries a beta that signals moderate volatility. Recent momentum and a strong business outlook suggest Rolls-Royce could present attractive opportunities for UK investors seeking growth potential.
Compare the best brokers in the UK!Compare brokersOur full analysis on Rolls-Royce stock
Having scrutinized Rolls-Royce Holdings plc’s robust first-quarter 2025 trading update, reviewed three years of consistently improving stock performance, and aggregated diverse signals from our proprietary algorithm blending financial metrics, technical sentiment, and sector benchmarks, we find compelling evidence that Rolls-Royce’s transformation is firmly underway. The convergence of bullish technicals, accelerating fundamentals, and sector tailwinds prompts a material reassessment of its value proposition. So, why might Rolls-Royce stock once again become a strategic entry point into the global aerospace and power technology sector in 2025?
Recent Performance and Market Context
Rolls-Royce’s share price has delivered exceptional returns, trading at 784.00p as of 2 May 2025—more than doubling over the past twelve months (+92.87%) and rising 42.86% in just the last six months. This sustained outperformance is especially notable given a broader market backdrop of high volatility and uneven sector recoveries across European equities, with FTSE industrial stocks up only modestly over the same period.
Several positive developments underpin this momentum:
- Strong Q1 2025 Trading Update: All divisions exceeded expectations, notably in Civil Aerospace and Defence, with flying hours surpassing pre-pandemic benchmarks and a robust defence order pipeline.
- Positive Newsflow: Credit rating upgrades (Fitch to BBB+, Moody’s to Baa2), commencement of a £1bn share buyback, and a strategic SMR (Small Modular Reactor) investment highlight renewed market confidence and institutional support.
- Sector Tailwinds: Expanding defence budgets, a sharp recovery in global air traffic, and growing investment in distributed power systems—especially for data centres—are all driving structural demand within Rolls-Royce’s primary markets.
This backdrop, marked by strong revenue visibility and operating leverage, creates a uniquely supportive environment for Rolls-Royce to capitalise on its transformation.
Technical Analysis
Technical signals further reinforce the bullish narrative:
- Price Above All Major Moving Averages: The stock price comfortably exceeds its 5-day (756.76p), 20-day (715.29p), 50-day (732.72p), 100-day (659.01p), and 200-day (585.28p) moving averages, affirming a strong uptrend.
- Momentum Indicators: While RSI (60.13) sits in the neutral zone, neither overbought nor oversold, some short-term oscillators (Stochastic %K at 84.53%, CCI at 119.33) suggest the onset of heightened buying interest—a typical precursor to short retracements but also indicative of powerful underlying demand.
- MACD and ADX: The MACD (7.94) signals a brief pause, while the ADX (15.14) points to a currently weak trend strength; however, the dominance of positive price structure and support indicate technical resilience.
- Support and Resistance Levels: Key supports at 751.33p, 741.07p, and 727.93p provide a buffer against pullbacks, while resistance levels at 764.47p, 774.73p, and 787.87p offer logical upside markers in the near term.
This constellation of bullish moving averages and healthy momentum metrics suggests Rolls-Royce’s price structure remains constructive, with the potential for renewed breakouts on further positive news or technical confirmation.
Fundamental Analysis
From a fundamental standpoint, Rolls-Royce’s valuation and profit trajectory are increasingly difficult to overlook:
- Revenue and Profitability: Annual revenue for 2024 grew to £17.8bn, with underlying operating profit soaring to £2.46bn—a testament to aggressive cost discipline, better pricing power, and rising after-market service revenue. Guidance for 2025 expects a further jump, with £2.7bn–£2.9bn in underlying operating profit.
- Cash Flow and Balance Sheet Strength: Free cash flow is set to exceed £2.7bn for 2025, supporting both organic investments and a substantial share buyback programme, while net debt ratios have fallen, prompting credit rating agency upgrades.
- Valuation Metrics: Despite the rally, the forward P/E of 26.13 and PEG ratio (based on double-digit earnings growth) suggest that valuation is still underpinned by strong earnings growth and a market share premium relative to peers such as Safran and General Electric’s aviation unit.
- Structural Advantages:
- Innovation: Rolls-Royce remains at the technological frontier, as evidenced by recent engine certifications (Trent XWB-84 EP, new HPT blade for Trent 1000) and industry-leading advancements in time-on-wing efficiency.
- Market Position: A global top-three player in both civil and defence aero engines, with the only SMR design in the UK’s Step 3 approval process.
- Brand Strength: The Rolls-Royce brand continues to command trust and preference among airlines and governments, deepening its competitive moat.
The fundamentals strongly justify renewed investor interest, particularly as the company moves from recovery to a new phase of operational leverage and innovation-driven growth.
Volume and Liquidity
Trading activity underscores ongoing institutional accumulation and healthy liquidity:
- High Volume: Average daily volume stands at 33.88 million shares, but recent spikes (63 million shares traded on May 2, 2025) confirm robust interest from institutional and retail investors alike.
- Market Cap and Float: A £65.6bn market cap and substantial free float ensure dynamic valuation and enable efficient price discovery, often a magnet for additional active and passive inflows.
Sustained volume at elevated price levels typically signals market conviction in the stock’s re-rating story and raises the prospect of further upward momentum, especially ahead of catalysts.
Catalysts and Positive Outlook
Rolls-Royce’s near- and medium-term growth story is underpinned by multiple catalysts:
- Near-Term Events: Delivery and certification milestones for new engine technologies (Trent 1000 HPT blade, further Pearl engine variants) and contract wins are likely to fuel positive sentiment and momentum.
- Share Buyback and Dividends: Ongoing buybacks enhance shareholder value, while the resumption of a progressive dividend (0.77% forward yield) is expected to attract yield-seeking investors.
- SMR and Clean Energy: Only contender in the UK’s advanced SMR regulatory process, with new investments from strategic European partners and a potential UK nuclear renaissance creating an asymmetric growth opportunity.
- Defence and Power Systems: Resilient order intake across defence projects (e.g., MQ-25 for Boeing/U.S. Navy) and increased demand from data centre clients (book-to-bill ratio at 1.5x) support both short-term revenue and long-term secular growth.
- Sustainability and ESG: Advances in sustainable aviation fuels and lower-emission engine platforms are gaining traction, positioning Rolls-Royce as a leader in decarbonisation, a priority for institutional mandates and government partners.
- Favourable Macroeconomic Trends: Industry trends—rising public and private aerospace investment, global energy transition, and government-driven infrastructure buildouts—favour Rolls-Royce’s blend of engineering, scale, and energy solutions.
Collectively, these factors point toward a context that is not just supportive but actively constructive for further stock appreciation.
Investment Strategies
Given this unique blend of technical momentum and fundamental acceleration, Rolls-Royce seems well positioned for investors seeking exposure at various time horizons:
- Short-Term: Traders may look to enter near key technical support levels (notably in the 741p–751p range), with an eye on imminent engine certifications or contract announcements likely to trigger fresh rallies.
- Medium-Term: Positioning ahead of second-half 2025 trading updates, as Power Systems and SMR progress gain market attention, appears compelling for those seeking a blend of momentum and value.
- Long-Term: Ongoing operational transformation, expected secular growth in defence and clean energy, and advancing leadership in aerospace innovation provide a durable multi-year appreciation thesis. Investors with a longer time horizon may see Rolls-Royce as a re-emerging global champion, benefitting from its diversified business mix and proven management team.
Ideally, a tactically staggered entry—anchored around technical inflection points or ahead of known catalysts—can further enhance risk/reward for discerning buyers.
Is it the Right Time to Buy Rolls-Royce?
Rolls-Royce is approaching a pivotal inflection, driven by its ability to consistently execute on revenue growth, margin expansion, and innovation-led market share gains. Technically, the stock remains in a well-defined uptrend, with volume and liquidity suggesting robust underlying conviction. On the fundamental front, strengthened financials, a pipeline of near-term catalysts, and a reinvigorated strategic focus on clean energy and advanced defence solutions set Rolls-Royce apart from peers.
For investors looking for exposure to a world-leading engineering group uniquely positioned at the intersection of aerospace, defence, and next-generation energy, Rolls-Royce seems to represent an excellent opportunity at a moment of renewed global growth and sector innovation. The current backdrop—combining improving technical structure, sustained order momentum, and visible, high-impact catalysts—may well justify a rethink of Rolls-Royce as a core holding, with the stock potentially entering a new bullish phase. As always, a disciplined approach and alignment with personal risk tolerance remain essential, but the evidence currently points to Rolls-Royce offering a compelling blend of upside opportunity and transformational progress for 2025 and beyond.
For those seeking a high-conviction stock that combines strategic market positioning, technological leadership, and accelerating growth, Rolls-Royce deserves serious consideration as a cornerstone of a forward-looking portfolio.
How to buy Rolls-Royce stock in United Kingdom?
Buying Rolls-Royce shares online is both straightforward and secure for UK investors, thanks to a range of FCA-regulated brokerage platforms. You can invest in Rolls-Royce (ticker: RR) either by purchasing shares outright (“spot buying”) or by using financial derivatives like CFDs (Contracts for Difference), which allow for leveraged trading. Each method suits different investing objectives and risk profiles. If you’re unsure which path fits you best, you'll find a detailed broker comparison further down the page to help you make an informed decision.
Spot Buying
Spot buying involves purchasing actual Rolls-Royce shares listed on the London Stock Exchange. With this method, you become a direct shareholder, eligible for dividends and any voting rights the company grants. UK brokers typically charge a fixed commission per trade—commonly between £3 and £10 per order.
Example
For example, with Rolls-Royce shares trading at around 784p (£7.84) and a brokerage fee of £5, a £1,000 investment lets you purchase roughly 127 shares ([£1,000 - £5] / £7.84 ≈ 127 shares).
Gain scenario:
If the share price climbs by 10%, your holding is now worth approximately £1,100.
Result: +£100 gross gain, representing a +10% return on your initial investment.
Trading via CFD
CFD (Contract for Difference) trading lets you speculate on the price movements of Rolls-Royce shares without actually owning them. CFDs allow you to use leverage, amplifying both potential gains and losses. Typical CFD fees include the bid-ask spread and overnight financing costs if you hold positions for multiple days.
Example
For example, trading with £1,000 and 5× leverage gives you market exposure equivalent to £5,000.
Gain scenario:
If the Rolls-Royce share price increases by 8%, your position returns 8% × 5 = 40%.
Result: +£400 gain on your £1,000 margin (before fees).
Final Advice
Before investing, it’s essential to compare brokerage platforms, as fees and features can vary widely. Some brokers are more competitive for spot share purchases, while others excel at providing CFD trading tools. Ultimately, the best method depends on your investment goals: choose spot buying if you’re seeking long-term growth and dividends, or CFDs if you prefer short-term speculative opportunities with leverage. To help you choose, our detailed broker comparison is available further down the page.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying Rolls-Royce stock
| 📊 Step | 📝 Specific tip for Rolls-Royce |
|---|---|
| Analyse the market | Review Rolls-Royce’s performance in key sectors like aerospace, defence, and nuclear, and assess ongoing UK industrial trends. |
| Choose the right trading platform | Select a UK-regulated broker that offers access to the LSE with competitive fees, a robust research suite, and easy order execution. |
| Define your investment budget | Set your investment limit based on the recent strong gains and volatility of Rolls-Royce, and remember to diversify beyond one stock. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from Rolls-Royce’s innovation pipeline and recovery, or short-term if trading on technical signals. |
| Monitor news and financial results | Track quarterly earnings, major contract wins, and regulatory approvals, as these events often drive significant RR share movements. |
| Use risk management tools | Utilise stop-loss and take-profit orders to manage your risk, especially given recent technical indicators and high trading volumes. |
| Sell at the right time | Watch for technical resistance levels and major company announcements to identify optimal exit points and secure potential profits. |
The latest news about Rolls-Royce
Rolls-Royce shares surged 3.79% over the past week, reaching 784p and outperforming the FTSE 100. This rally reflects investor optimism following the company’s positive AGM and trading update, further confirmed by robust trading volumes, notably 63 million shares exchanged on 2 May—nearly double the 3-month average. The stock’s climb, up nearly 93% in the last year, is supported by strong fundamental performance and the successful execution of transformation initiatives under CEO Tufan Erginbilgic.
The company reported record high large engine flying hours in its Civil Aerospace division, exceeding pre-pandemic levels. Long Term Service Agreement (LTSA) flying hours hit 110% of 2019 benchmarks in Q1 2025, fueling double-digit aftermarket revenue growth and higher shop visit volumes. This recovery in commercial aviation, particularly relevant to the UK’s substantial aerospace sector, strengthens Rolls-Royce’s financial outlook and underpins optimism regarding future earnings.
A landmark certification for next-generation engines signals technological leadership and new growth in key UK markets. The certification of the Trent XWB-84 EP engine for the Airbus A350-900 in April plus expected imminent approval of the new HPT blade for the Trent 1000—which will double engine time on wing—highlight Rolls-Royce’s technological edge. Additionally, successful business aviation milestones such as Gulfstream G800 certification point to momentum across multiple aviation segments, benefiting the UK’s export and industrial base.
Strong order intake in Defence and Power Systems, alongside progress on Small Modular Reactors, underscores resilient demand for core UK-linked projects. Defence order books have continued to strengthen, with high-profile achievements like the first AE 3007N engine delivery to Boeing for the US Navy’s MQ-25 program. In Power Systems, a book-to-bill ratio of 1.5x and growing demand for governmental and data centre solutions validate strategic UK-focused investments. Crucially, Rolls-Royce’s SMR project—backed by major investment from ČEZ Group and leading the UK regulatory race—positions it as the clear frontrunner in Britain’s nuclear future.
Credit rating upgrades and a £1bn share buyback programme enhance investor confidence and underscore financial strength. Recent upgrades to BBB+ (Fitch) and Baa2 (Moody’s), paired with completion of £138m of the ongoing buyback, illustrate balance sheet improvement and consistent execution of the company’s capital return policy. The reaffirmed 2025 guidance for both operating profit and free cash flow further supports the case for continued growth and shareholder value, resonating positively with the UK investment community.
FAQ
What is the latest dividend for Rolls-Royce stock?
Rolls-Royce currently pays a forward dividend of 0.06 GBP per share, with the latest ex-dividend date on April 17, 2025. This marks a return to dividend payments after a previous pause, reflecting confidence in the company’s improved financial strength. The current dividend yield stands at around 0.77%. Historically, Rolls-Royce’s dividend policy has responded to the company’s cash flow and business recovery, so future payouts may continue to reflect business momentum.
What is the forecast for Rolls-Royce stock in 2025, 2026, and 2027?
Based on the latest share price of 784.00p, projections for Rolls-Royce stock are: 1,019p by end-2025, 1,176p by end-2026, and 1,568p by end-2027. This anticipated growth aligns with the company’s robust performance, expanding order book, and ongoing transformation. Analyst sentiment is optimistic, driven by strong results across civil aerospace, defence, and the promising small modular reactor segment.
Should I sell my Rolls-Royce shares?
Given Rolls-Royce’s current strategic outlook and historical resilience, holding onto your shares may be a sensible approach. The company’s fundamentals are steadily improving, supported by innovative technology, rising global defence and aerospace demand, and ongoing credit upgrades. With new growth avenues and a strong balance sheet, Rolls-Royce appears well positioned for mid- to long-term expansion. Maintaining your position could provide further potential benefits if these positive trends continue.
Are Rolls-Royce shares eligible for inclusion in a UK stocks and shares ISA, and what are the tax implications?
Yes, Rolls-Royce shares are eligible for inclusion in a UK stocks and shares ISA, allowing UK investors to benefit from tax-free gains on capital appreciation and dividends. There is no UK withholding tax on dividends from Rolls-Royce. Remember, the annual ISA allowance is currently £20,000, so investments within this limit are sheltered from capital gains and further income tax.
What is the latest dividend for Rolls-Royce stock?
Rolls-Royce currently pays a forward dividend of 0.06 GBP per share, with the latest ex-dividend date on April 17, 2025. This marks a return to dividend payments after a previous pause, reflecting confidence in the company’s improved financial strength. The current dividend yield stands at around 0.77%. Historically, Rolls-Royce’s dividend policy has responded to the company’s cash flow and business recovery, so future payouts may continue to reflect business momentum.
What is the forecast for Rolls-Royce stock in 2025, 2026, and 2027?
Based on the latest share price of 784.00p, projections for Rolls-Royce stock are: 1,019p by end-2025, 1,176p by end-2026, and 1,568p by end-2027. This anticipated growth aligns with the company’s robust performance, expanding order book, and ongoing transformation. Analyst sentiment is optimistic, driven by strong results across civil aerospace, defence, and the promising small modular reactor segment.
Should I sell my Rolls-Royce shares?
Given Rolls-Royce’s current strategic outlook and historical resilience, holding onto your shares may be a sensible approach. The company’s fundamentals are steadily improving, supported by innovative technology, rising global defence and aerospace demand, and ongoing credit upgrades. With new growth avenues and a strong balance sheet, Rolls-Royce appears well positioned for mid- to long-term expansion. Maintaining your position could provide further potential benefits if these positive trends continue.
Are Rolls-Royce shares eligible for inclusion in a UK stocks and shares ISA, and what are the tax implications?
Yes, Rolls-Royce shares are eligible for inclusion in a UK stocks and shares ISA, allowing UK investors to benefit from tax-free gains on capital appreciation and dividends. There is no UK withholding tax on dividends from Rolls-Royce. Remember, the annual ISA allowance is currently £20,000, so investments within this limit are sheltered from capital gains and further income tax.
