FILE: Rolls-Royce’s Montreal factory entrance. Photo: Andrew Hylton and Marilou Ferland / Wikimedia Commons, licensed CC BY-SA 3.0; cropped and resized. This cropped and resized photograph is licensed under CC BY-SA 3.0; the article text is not covered by that license.
Rolls-Royce announced a £1.5 billion interim share buyback Thursday, accelerating the timing of shareholder returns while leaving its 2026 profit and cash-flow guidance unchanged.
The aerospace and power-systems group said the buyback will be completed by its full-year results on February 25, 2027. It is part of the existing £7 billion to £9 billion buyback programme for 2026 through 2028, not an increase in that programme’s size.
Rolls-Royce said its previously announced £2.5 billion buyback for 2026 is now substantially complete. The new interim repurchase brings forward spending within its existing multiyear plan.
In its November 12 trading update, the company maintained guidance for underlying operating profit of £4.7 billion to £4.9 billion and free cash flow of £3.8 billion to £4.0 billion for 2026. It also reiterated plans to revisit its medium-term targets at the February results.
Large-Engine Backlog Reaches About 2,500
Rolls-Royce said demand remains strong in widebody and business aviation, with its large-engine order backlog growing to around 2,500 engines.
Large-engine flying hours rose 4% from a year earlier during the first 10 months of 2026, reaching 114% of 2019 levels. The company still expects full-year flying hours toward the lower end of its previously stated range of 115% to 120% of 2019 levels.
The group also reported strong demand in its defence business and continued order and revenue growth in Power Systems, led by power generation and governmental customers. Those operating updates accompanied the faster buyback schedule, rather than a change to the year’s financial outlook.
Source: Rolls-Royce Holdings’ November 12 trading update.
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