Rolls-Royce – an old established engineering company that makes jet engines – has made unbelievable stock market gains in the last 2 years. But what on earth has caused such a recently terribly performing company make such an incredible comeback (and make investors rich)?
Research Links:
• Evening Standard – Rolls-Royce “firing on all cylinders” as shares surge continues: https://www.standard.co.uk/business/ftse-100-live-27-february-rollsroyce-dividend-aviva-results-corporate-updates-taylor-wimpey-london-stock-exchange-haleon-b1213577.html
• Alliance News via Morningstar – Rolls-Royce shares hit new high as it hails “significant” SMR award: https://www.morningstar.co.uk/uk/news/AN_1749543904471066500/rolls-royce-shares-hit-new-high-as-hails-significant-smr-award.aspx
• Wikipedia – Rolls-Royce Motors (history of car brand separation from Rolls-Royce plc): https://en.wikipedia.org/wiki/Rolls-Royce_Motors
• Aviation Week – Rolls-Royce Runs UltraFan To Full Power: https://aviationweek.com/shownews/dubai-airshow/rolls-royce-runs-ultrafan-full-power
• Business Live – FTSE 100 darling Rolls-Royce continues meteoric rise: https://www.business-live.co.uk/manufacturing/ftse-100-darling-rolls-royce-32009163
• Rolls-Royce Press Release – Rolls-Royce appoints Tufan Erginbilgiç as Chief Executive Officer: https://www.rolls-royce.com/media/press-releases/2022/26-07-2022-rr-appoints-tufan-erginbilgic-as-chief-executive-officer.aspx
• BBC News – Rolls-Royce is a “burning platform,” claims new boss: https://www.bbc.co.uk/news/business-64429451
• BBC News – Rolls-Royce strikes £9 billion nuclear deal: https://www.bbc.co.uk/news/articles/c93q974p341o
• Rolls-Royce Press Release – Rolls-Royce welcomes Australian investment in AUKUS preparation plans: https://www.rolls-royce.com/media/press-releases/2024/21-03-2024-rr-welcomes-australian-investment-in-aukus-preparation-plans.aspx
• Rolls-Royce Press Release – Rolls-Royce signs landmark Unity contract with UK Ministry of Defence: https://www.rolls-royce.com/media/press-releases/2025/24-01-2025-rolls-royce-signs-landmark-unity-contract-with-uk-ministry-of-defence.aspx
• The Chemical Engineer – UK Government selects Rolls-Royce to build UK’s first three SMRs and commits £2.5bn: https://www.thechemicalengineer.com/news/government-selects-rolls-royce-to-build-uk-s-first-three-smrs-and-commits-25bn/
• UK Government – Rolls-Royce SMR selected to build Small Modular Nuclear Reactors: https://www.gov.uk/government/news/rolls-royce-smr-selected-to-build-small-modular-nuclear-reactors
• CityAM – Rolls-Royce shares in FTSE 100 firm jump on SMR news: https://www.cityam.com/rolls-royce-shares-in-ftse-100-firm-jump-on-smr-news/
• IG International – Rolls-Royce shares surge on positive results (2024 Financial Results): https://www.ig.com/en/news-and-trade-ideas/_rolls-royce-shares-surge-on-positive-results-250227
• S&P Global – Rolls-Royce PLC upgraded on rising profitability, strong cash generation, deleveraging: https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3234138
• BBC News – Rolls-Royce dividend returns after profit surge: https://www.bbc.co.uk/news/articles/c0dme21jrd7o
• Seeking Alpha – Rolls-Royce spikes to record high on dividend return, stock buyback, strong outlook: https://seekingalpha.com/news/4414826-rolls-royce-spikes-to-record-high-on-dividend-return-stock-buyback-strong-outlook
• Yahoo Finance UK – £1,000 invested in Rolls-Royce shares… now worth?: https://uk.finance.yahoo.com/news/1-000-invested-rolls-royce-103258826.html
• RollsRoyceInvestors Subreddit: https://www.reddit.com/r/RollsRoyceInvestors/
• CityAM – Rolls-Royce investors have made a mint as shares near £10: https://www.cityam.com/rolls-royce-investors-have-made-a-mint-as-shares-near-10/
• Interactive Investor – Rolls-Royce share price surge contrasts plunge at Ocado: https://www.ii.co.uk/analysis-commentary/rolls-royce-share-price-surge-contrasts-plunge-ocado-ii534501
• Bloomberg News – Rolls-Royce CEO takes ‘burning platform’ of company to new highs: https://www.bloomberg.com/news/articles/2025-02-27/rolls-royce-ceo-takes-burning-platform-of-company-to-new-highs?embedded-checkout=true
Image Credit (RB211 Engine): https://en.wikipedia.org/wiki/Rolls-Royce_RB211#/media/File:Rolls_Royce_RB.211_vl.jpg
Music by Epidemic Sound.
Video Rating: / 5
Turbulence is likely very good video thanks
good video, but as someone who bought a lot of this stock in 2022 and has held until now, I think the thing most people don't appreciate is that a lot of the rise would have still occurred under Warren East- maybe not as much as under Tufan, but many cuts were made to inefficiencies under Warren's leadership and the global rise in air travel would have still transformed the company
SMR has a fundamental advantage. One large nuclear power plant requauires the expansion of the power transmision infrastructure. With SMR two smaler power plants build at the ends of existing infrastructure can transmit almost twice the power. In era of mass electrification this could be quite a revolution. Althought the coś of SMR may not be low initialy, I`m almost certain it will be cheaper than expanding additional power transmission infrastructure. I`m waiting for a potentat drop in the current price to buy some more RR shares.
Thanks for this informative video!
With this pace and the success from SMR this company can become a trillion dollar company in next few years..
Currently hold 1.84 share price, really think this stock is going to keep growing with the nuclear reactors
Damn Nik ka believe I never invested in this gully stock when I had the chance.
I really wish I bought more and held my shares! Well, I made a bit of a profit xD