British aerospace giant Rolls-Royce Holdings is reportedly preparing to announce a massive share buyback program worth up to $2 billion when it releases annual earnings this week. The move would mark the company's second major shareholder return initiative in two years, following strong financial performance.
British engineering company Rolls-Royce Holdings is reportedly preparing to unveil a major shareholder return program worth up to 1.5 billion pounds ($2.02 billion) when it releases annual earnings results this week, according to Sky News.
The television network reported Sunday that the aerospace manufacturer plans to announce the substantial share buyback initiative alongside its yearly financial report. TV Delmarva was unable to independently confirm these details, and company representatives have not yet responded to requests for comment.
The potential announcement comes after Rolls-Royce demonstrated strong financial momentum throughout the previous year. Last July, the company raised its annual profit projections during its mid-year earnings report, boosting its operating profit forecast by 300 million pounds to reach 3.2 billion pounds. The firm also increased its free cash flow expectations by 200 million pounds to 3.1 billion pounds.
This would represent the second significant buyback program from Rolls-Royce in consecutive years. The company previously initiated a 1 billion pound share repurchase plan approximately one year ago when announcing its annual results.
The current exchange rate shows $1 equivalent to 0.7417 pounds.
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