Rolls-Royce Shares Soar 1,000% Amid Remarkable Recovery, Experts Weigh In on Buy, Sell, or Hold Strategy

Rolls-Royce shares have surged 1,000% since 2023, making investors a fortune. The company's recovery is attributed to its cost-cutting measures and the rebound in the travel industry. Experts say Rolls-Royce is ticking all the boxes for investors, but it's unclear whether the growth can continue.

Rolls-Royce shares have surged by an astonishing 1,000% since the beginning of 2023, making investors a significant fortune. This remarkable turnaround is attributed to the company's aggressive cost-cutting measures and the robust rebound in the travel industry, which has driven demand for aircraft engines.

Under the leadership of CEO Tufan Erginbilgic, Rolls-Royce has undergone a major turnaround since 2023. The company reported a fourfold increase in first-half net profit to £4.4 billion ($5.8 billion) compared to £1.1 billion in the first half of 2024 [1]. This surge in profitability was driven by a combination of factors, including rising sales and a significant accounting gain linked to the weakening of the dollar.

Revenue increased by seven percent to £9.5 billion in the reporting period, underscoring the company's ability to capitalize on the recovering travel sector. The civil aerospace division, which supplies engines to major aircraft manufacturers like Airbus and Boeing, has been a key driver of this growth. The company's strong performance has led to an upgrade in its 2025 guidance, with underlying operating profit expected to reach up to £3.2 billion, compared to the previous forecast of between £2.7 billion and £2.9 billion [1].

Rolls-Royce's turnaround has been further bolstered by favorable trade agreements. In May, a trade agreement between the UK and US removed tariffs on Britain's aerospace sector, benefiting Rolls-Royce significantly. The company expects to fully offset the impact of the announced tariffs through mitigating actions [1].

However, while Rolls-Royce's stock performance has been impressive, the sustainability of this growth is a matter of debate among financial experts. The company's reliance on the travel industry, which can be volatile, poses a risk. Additionally, the ongoing supply chain challenges and geopolitical uncertainties could impact future performance.

Despite these uncertainties, Rolls-Royce's stock has continued to soar, reaching a market capitalization of over £90 billion, making it the fifth-largest company in the FTSE 100. The company's ability to deliver strong results and upgrade guidance has been a key factor in its stock's performance. For instance, shares in Rolls-Royce were up 9.2% at £10.79 on London's FTSE 100 index around 0900 GMT on Thursday, July 31, 2025 [2].

In conclusion, Rolls-Royce's remarkable turnaround and the subsequent 1,000% share price surge since 2023 are a testament to the company's effective cost-cutting measures and the rebound in the travel industry. While the sustainability of this growth is uncertain, Rolls-Royce's strong performance and upgraded guidance have made it a favorite among investors. As the company continues to navigate the challenges of the supply chain and geopolitical uncertainties, its ability to maintain this trajectory will be closely watched.

References:
[1] https://bilyonaryo.com/2025/07/31/rolls-royce-shares-surge-as-engine-maker-lifts-outlook/mobility/
[2] https://www.standard.co.uk/business/ftse-100-live-31-july-rollsroyce-results-corporate-earnings-shell-trading-next-retail-figures-unilever-ice-cream-us-tech-giants-share-price-performance-stock-market-b1240835.html