Rolls-Royce plans to buy back $2 billion worth of shares — Sky News

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Investing.com — According to Sky News on Sunday, citing unnamed sources, Rolls-Royce Holdings plc (LON:RR) plans to announce a new share buyback program worth up to £1.5 billion ($2 billion) when it releases its annual financial report this week.

The aircraft engine manufacturer raised its annual earnings guidance last year, expecting that demand from commercial aircraft manufacturers will improve, leading to stronger profits and free cash flow for the company.

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The revised earnings guidance and capital return also mark a strong recovery for Rolls-Royce after the COVID-19 pandemic severely impacted its civil aviation business earlier this century.

The company will release its annual financial report on February 26. Last year, the company announced a £1 billion share buyback plan.

It is expected that the company’s annual basic operating profit will reach between £3.1 billion and £3.2 billion.

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