Strategic Wins for Rolls-Royce: Major Engine Deal and Nuclear Progress

As the 2026 trading year gets underway, Rolls-Royce has announced significant operational developments. The British engineering group has secured a substantial order from U.S. carrier Delta Air Lines while also reporting strategic advances within its nuclear division. These announcements provide a timely boost ahead of the closely watched annual results, following a period of consolidation for the stock after a remarkable rally.

A major commercial breakthrough has been achieved in Rolls-Royce's core civil aerospace business. Delta Air Lines has placed a firm order for a total of 62 aircraft engines. The package consists of 30 Trent XWB-84 EP engines to power Airbus A350-900 aircraft and 32 Trent 7000 engines for the Airbus A330neo fleet.

Market observers highlight the accompanying service agreement as a particularly positive aspect. The deal includes the "TotalCare" package, which covers engine maintenance and monitoring. For Rolls-Royce, these long-term service agreements are frequently as crucial as the initial sale, providing stable revenue streams over many years. This order deepens the existing relationship with Delta and reinforces the company's strategy of securing market share through enhanced engine durability, as seen with the Trent 1000XE model.

Consolidation After a Strong Run

These operational successes arrive amid a notable technical picture for the share price. Following an impressive twelve-month rally that saw the stock nearly double with a gain of almost 98%, investors have used the start of 2026 to take profits. Since the beginning of the year (YTD), the equity has registered a decline of approximately 11.75%.

Should investors sell immediately? Or is it worth buying Rolls-Royce?

The coming weeks will determine whether fundamental performance can continue to support the elevated valuation. Investor attention is now fixed on late February. Rolls-Royce is scheduled to release its full 2025 financial report, likely on the 25th or 26th of February, providing insight into how new contracts and a sustainability focus are reflected in the accounts.

Advancements in Small Modular Reactor Technology

Beyond aviation, the company is progressing with its diversification efforts. The division for Small Modular Reactors (SMRs) has entered a strategic partnership with Yokogawa. The Japanese firm is set to supply control and data processing systems for the reactors.

This move is essential for the technical execution of the SMR program. Rolls-Royce has already been selected by Great British Energy – Nuclear as the preferred provider for the first UK-based SMRs. Concurrently, processes are underway to identify technology partners in markets including Sweden and the Czech Republic.