Rolls-Royce shares hit yet another record high
Shares in FTSE 100 giant Rolls-Royce have hit yet another all-time high, giving the company a £90bn valuation for the first time in its history.
Shares in the Derby-headquartered group are changing hands for a new record of around 1,090p this morning after rising by over two per cent in early trades.
The increase means that Rolls-Royce now commands a valuation of around £90bn, a total it first achieved at the back end of last week following the publication of its expectation-busting half-year results.
Rolls-Royce’s shares jumped from 988p to 1,072p after the results were revealed – meaning the company passed the 1,000p mark for the first time.
Shares in Rolls-Royce finished 2024 priced at 568p and have been on a consistent upward trajectory since the Covid-19 pandemic, only impeded for a a few weeks by US President Donald Trump’s tariff announcement in April.
Half-year results fuel share price boom
Last week, the group raised its profit guidance after a “strong start to the year” which saw its revenue surge by almost £1bn.
The business reported an underlying pre-tax profit of £1.68bn for the first six months of its financial year, up from the £1.03bn it posted for the same period in 2024.
Its underlying operating profit grew by 50 per cent from £1.14bn to £1.73bn in the first six months of the year.
On a statutory basis, Rolls-Royce’s revenue grew from £8.86bn to £9.49bn, its operating profit went from £1.64bn to £2.07bn and its pre-tax profit from £1.41bn to £4.84bn. Underlying revenue rose from £8.18bn to £9.05bn during the period.
As a result of its boosted finances, the business said it was raising its guidance for 2025 and that it now expects to deliver an underlying operating profit of between £3.1bn-£3.2bn and free cash flow of between £3bn-£3.1bn.
‘Rolls-Royce is the poster child for what’s capable on the stock market’
Commenting on the results last week Russ Mould, investment director at AJ Bell, said: “Rolls-Royce has solid engines in more ways than one.
“Not only is it keeping planes safely in the sky, but the business is also an engine to drive growth year after year.
“Having already delivered a stellar turnaround, Rolls-Royce is showing no signs of taking its foot off the pedal.
“Shareholders are absolutely delighted as upgraded earnings guidance helps to rev the share price even higher.
“Rolls-Royce’s share price has now increased by 1,442 per cent since October 2022, meaning investors who held that entire time have made more than 15 times their money.
“Rolls-Royce is the poster child for what’s capable on the stock market. While Chancellor Rachel Reeves is keen for more people to invest and make a better return than cash, even she wouldn’t expect investors to always make Rolls-Royce kind of returns.
“But the gains from holding Rolls-Royce show that big returns aren’t simply a fantasy on the UK market.
“It’s also a welcome reminder that Britain has plenty of business champions, with Rolls-Royce the cream of the crop.”