Image source: Rolls-Royce plc
Three years ago, on 30 December 2022, the Rolls-Royce (LSE: RR.) share price was 93p. The shares rocketed soon after, hitting 10-bagger status (going up 10 times in value or more) in only three years. The share price now stands at over £10!
Here is the breakdown of each of those years’ change in share price along with the reasons why. We’ll also take a look at why 2026 could be another terrific year for the stock.
By year
Rolls-Royce shares rose 222% in 2023. Soon after new CEO Tufan Erginbilgiç took the reins – infamously calling the company a “burning platform” – the turnaround was on.
The shares ballooned after a barnstorming first-half results where expectations were beaten and guidance was upgraded. A greater focus on military spending in light of the Ukraine war played a large role this year too.
The shares climbed 93% in 2024. The jump in profit and free cash flow this year led to a crucial decision in August – reinstating shareholder distributions.
A resumption of the dividend and a £1bn buyback program buoyed the stock along with the mood of investors.
The Rolls-Royce share price has risen 91% so far in 2025. Profits continued to surge with earnings-per-share of 28p (expected) for the financial year, nearly 15 times the 2p EPS of 2022.
The selection of Rolls-Royce by Great British Energy to build small modular reactors (a type of small nuclear power plant) boosted the stock’s long-term prospects too.
Breaking it down like this really shows what a terrific run Rolls-Royce has been on. While a stock doubling inside a year is somewhat common (a bunch of FTSE 100 stocks did the trick this year), to do it three times in a row is a terrific run.
The big question then – is 2026 shaping up to be another monster?
Next up
One of the reasons to think not is the cooling of global tensions. It’s no accident that the staggering Rolls-Royce share price climb coincided with wars breaking out around the world. The firm makes a lot of engines for fighter jets and the like. If we finally get an end to the horrible conflict in Ukraine, then that will not be good for the share price.
On the other hand, revenue and earnings are both forecast to rise next year. That information is already priced in. But if the company can continue its habit of beating expectations and raising guidance, then the surge might not be over yet.
Next year will, like most years, undoubtedly see dozens of companies on the London Stock Exchange double in value. Will Rolls-Royce be one of those big winners again? I wouldn’t like to bet against it. I think it’s a stock worth considering.
