Can Rolls-Royce Shares Hit A New High?

Rolls-Royce (LON: RR.) shares have surged more than 100% over the past 12 months and are up over 7% since the start of the year, trading around 1,248p.

The stock reached a peak of 1,306.5p in January before dipping, raising the question of whether fresh highs are achievable ahead of the company’s full-year 2025 results on 26 February.

The rally has been underpinned by a combination of sector trends and company-specific momentum. Investor appetite for defence exposures has strengthened, and while Rolls-Royce’s defence business represents only about a quarter of underlying revenue, the theme has provided a supportive backdrop.

The group’s power systems division has also drawn bullish commentary from analysts, reflecting expectations of continued demand for engines and energy solutions.

However, the largest contributor to revenue remains civil aerospace, a business that is undergoing a long-term turnaround. The division manufactures large jet engines for commercial aircraft made by Boeing and Airbus, and its recovery is closely tied to global flight activity and service demand.

Consensus forecasts compiled in January show analysts expect steady earnings growth through 2028. For 2025, the average projections point to £19.6 billion in underlying revenue and £3.27 billion of underlying EBIT, rising to £25.7 billion and £4.65 billion respectively by 2028.

Earnings per share are expected to increase from 29p in 2025 to 43.6p in 2028. Dividend forecasts also trend higher.

Whether shares can push beyond January’s high may depend on the upcoming results, guidance for 2026 and signs of sustained progress across civil aerospace, defence and power systems.