KEY POINTS
  • Shares of FTSE 100-listed aviation manufacturer Rolls-Royce soared, after the company's annual results sharply beat expectations.
  • Rolls Royce recorded £652 million ($786 million) of underlying profit last year, £238 million higher than in 2021 — exceeding analyst forecasts near £478 million, as polled by Reuters.
  • The company attributed the results to recovering demand for international travel.
Rolls Royce Trent XWB engines, designed specifically for the Airbus A350 family of aircraft, are seen on the assembly line at the Rolls Royce factory in Derby, November 30, 2016.
Paul Ellis | Reuters

Shares of London-listed aviation manufacturer Rolls-Royce soared Thursday, after the company sharply beat expectations with a 57% year-on-year increase in underlying profit, driven by its civil aerospace and power systems.

Its stock was up by 23% at roughly 1:30 p.m. London time. The company recorded £652 million ($786 million) of underlying profit last year, £238 million higher than in 2021 — exceeding analyst forecasts near £478 million, as polled by Reuters. Rolls-Royce's free cash flow from continuing operations added £2 billion on the year to £505 million in 2022.