Rolls-Royce stocks recuperate entirely on FTSE 100, following the surprise announcement of Trump tariffs.
Rolls-Royce shares rode back from a nosedive caused by President Trump's tariff announcement, rebounding and setting a new high since the turmoil in April. The FTSE 100 titan took a massive hit on its share price after the U.S. president's "Liberation Day" on April 2. The tariffs plunged shares of this Derby-based powerhouse, with the share price plummeting from 779.4p on April 1 to 635.8p by the closing bell on April 7. This steep slide erased over £10bn from the company's market capitalization.
However, fortune favored Rolls-Royce post-tariff chaos, as its share price gradually regained its footing and surpassed the pre-"Liberation Day" levels. As of early May 2025, the shares are trading around 783p, positioning the company with a market capitalization of £66.4bn[1][3]. Although the share price has yet to reach the all-time high of 812.8p, achieved amid the spike in February due to promising financial results and a Ukrainian defense summit[2], the company seems to be heading in the right direction.
Looking at the financial horizon, Rolls-Royce expresses confidence in achieving an underlying profit of nearly £3 billion in 2025. The original projection of the underlying profit margin varied between £2.7bn and £2.9bn. The company is also anticipating around £2.7bn to £2.9bn of free cash flow[2]. Despite the ongoing tariff uncertainties, Rolls-Royce remains optimistic about mitigating the impact through strategic maneuvers[2].
[1] Financial Times, , May 7, 2025.[2] BBC News, , May 6, 2025.[3] CNBC, , May 5, 2025.
- Despite the initial nosedive caused by tariff announcements, Rolls-Royce's shares have rebounded significantly, surpassing their pre-tariff levels in finance markets, strengthening the company's position in business.
- Looking ahead, Rolls-Royce anticipates an underlying profit of nearly £3 billion in 2025, a projection that reflects confidence in their financial stability amid investing concerns, especially with regards to tariff uncertainties.
