Rolls-Royce: From 'Burning Platform' To High-Margin Compounder

Rolls-Royce has executed a dramatic turnaround, transforming into a high-margin industrial compounder with robust growth across all divisions. 2025 results show revenues up 14% to £20.1B, operating profit up 38% to £3.5B, and free cash flow surging to £3.3B, with strong order backlogs. Shareholder returns are accelerating via a reinstated dividend and an aggressive £7–9B buyback program through 2028, targeting a 10% share count reduction.