Rolls-Royce stock gets GBP 1.5bn buyback as 2026 outlook holds

Rolls-Royce Holdings said on Thursday, November 12, that strong progress in the second half had supported its full-year outlook and announced an interim share buyback worth GBP 1.5 billion. The company trading update said the programme will be completed by the full-year results on February 25, 2027, as part of the existing GBP 7 billion to GBP 9 billion buyback programme for 2026 to 2028.

Rolls-Royce stock traded at 16.51 euros on Lang & Schwarz at 11:06 CET on Thursday, November 12, 2026, 3.06 percent above the Xetra close of Wednesday, November 11, 2026, at 16.02 euros. The price movement came as investors assessed the new operating update and the accelerated return of capital.

Demand remains firm across divisions

In Civil Aerospace, the large-engine order backlog grew to around 2,500 engines. Second-half orders included 70 Trent 7000 engines for Avolon and 22 for Cathay Group, while Air China selected 15 Trent XWB-84 engines and Philippine Airlines selected 18 Trent XWB-97 engines.

Large-engine flying hours increased 4 percent year on year in the first ten months of 2026 to 114 percent of 2019 levels, compared with 113 percent at the half-year stage. Rolls-Royce expects full-year flying hours to land toward the lower end of its 115 percent to 120 percent guidance range. Large-engine original-equipment deliveries and major shop visits were significantly higher year on year, with full-year guidance for both measures unchanged.

Defence demand remained strong across mature and new programmes. Rolls-Royce also said the Airbus A350F completed its first flight in September and that orders had been secured for more than 100 aircraft from 14 airlines. The company expects the freighter to enter service in 2027.

Power Systems adds growth visibility

Power Systems order intake increased 62 percent year on year in the first nine months, taking the order backlog at the end of September to a record GBP 8.6 billion from GBP 8.0 billion at the half-year stage. Gas-engine orders for power generation nearly tripled year on year, supported by demand from data centres, and Rolls-Royce is finalising a multi-year contract to supply backup engines to a hyperscaler.

Management maintained 2026 guidance for underlying operating profit of GBP 4.7 billion to GBP 4.9 billion and free cash flow of GBP 3.8 billion to GBP 4.0 billion. Chief Executive Tufan Erginbilgic said the company would revisit its mid-term targets at the full-year results, while the additional buyback reflects confidence in sustainable free cash flow growth.

Investors will next focus on execution against the full-year targets and the full-year results due on February 25, 2027. Broader sentiment can be followed through the FTSE 100 market environment.

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