Rolls-Royce Holdings Plc set a new medium-term target of higher cash flow and return on capital as Chief Executive Officer Tufan Erginbilgic takes his turnaround effort at the UK engine maker to the next phase.

The company expects to achieve operating profit of as much as £2.8 billion and free cash flow of as much as £3.1 billion by 2027, with a return on capital of as much as 18% by then, it said in a stock exchange filing ahead of its capital markets day presentation on Tuesday. The manufacturer will also look to divest assets that don’t meet profitability goals and continue a saving push that will generate as much as £500 million in the mid-tern.