Rolls-Royce Holdings (LON: RR) opened the trading week with robust momentum, extending a remarkable run that has captivated both institutional and retail investors. As of Monday, June 16, 2025, the engineering giant’s stock price continues to reflect the company’s dramatic turnaround and renewed investor confidence.
The past week saw Rolls-Royce shares fluctuate within a tight range, closing at 870.00p on Friday, June 13, after peaking at 881.80p during the session. This performance builds on a series of strong closes throughout June, with the stock consistently trading above 850p and reaching highs near 900p in recent sessions.
The sustained rally underscores the market’s optimism following Rolls-Royce’s impressive financial recovery and operational achievements over the past year.
The company’s resurgence has been driven by a series of strategic wins. Rolls-Royce reported 2024 revenues of £17.9 billion, with operating profits surging 57% to £2.5 billion and free cash flow doubling to £2.4 billion. This financial strength enabled the firm to shift from a £2 billion debt position to a £475 million net cash surplus, fueling a £1 billion share buyback and the reinstatement of dividends.
The civil aerospace division, in particular, has benefited from an 18% jump in large engine flying hours, now exceeding pre-pandemic levels, while defense contracts such as the £9 billion Unity deal for Royal Navy submarines add further stability to the balance sheet.
Analysts remain bullish on the stock, noting that innovations like the UltraFan engine and Small Modular Reactors (SMRs) position Rolls-Royce for long-term growth. Despite a forward price-to-earnings ratio that remains above the sector average, the market appears to be pricing in continued margin expansion and earnings growth, with some forecasts suggesting operating margins could climb to 17% by 2028.
Investor sentiment is further buoyed by the company’s strong buy recommendations and a positive outlook for the remainder of 2025. However, with the stock having surged over 800% since its 2022 lows, some caution remains regarding valuation and external risks.
As trading resumes this week, all eyes are on whether Rolls-Royce can maintain its upward trajectory and approach the psychologically significant £10 mark—a milestone that would further cement its status as one of the most compelling comeback stories in the FTSE 100 this decade.
