Rolls-Royce reported an impressive underlying operating profit of £1.1 billion for the first half of 2024, a remarkable 74% increase from £673 million during the same period last year.

The company's revenues also saw a significant boost, increasing by 19% to £8.2 billion, with pre-tax profit nearly doubling to £1 billion when excluding exchange rate impacts.

This financial success has been attributed to effective commercial optimization and cost efficiency initiatives implemented under the leadership of CEO Tufan Erginbilgiç.

Since taking the helm in 2023, Erginbilgiç has focused on a turnaround strategy aimed at restoring dividends swiftly.

As a result of improved financial resilience, Rolls-Royce has decided to reinstate shareholder distributions, starting with a commitment to a 30% payout ratio of underlying profit after tax.

Shareholders can expect this payout ratio to potentially increase to 40% depending on the company's performance.

The company has raised its profit forecasts for 2024, now expecting underlying operating profit to range between £2.1 billion and £2.3 billion, exceeding market expectations.

Additionally, Rolls-Royce has significantly reduced its net debt to £0.8 billion, down from £2 billion at the end of 2023.

Following the announcement of these results, Rolls-Royce shares surged over 10%, reaching a record high of £498.50.

Erginbilgiç, often referred to as 'Turbo Tufan' for his rapid implementation of cost-cutting measures, has emphasized the company's commitment to expanding earnings and cash potential despite ongoing supply chain challenges.

In addition to its financial recovery, Rolls-Royce is advancing in the development of small modular reactors, positioning itself as a leader in the nuclear power sector.