Rolls-Royce Accelerates £1.5 Billion Share Buyback as Engine Demand Grows
The aircraft-engine maker kept its full-year financial guidance as a large-engine order backlog reached about 2,500 and flying hours rose.
Rolls-Royce said Thursday it will accelerate its shareholder returns with a £1.5 billion interim share buyback, while strong demand for aircraft engines helped keep its full-year outlook on track.
The buyback is due to finish by the company's full-year results on February 25, 2027. Rolls-Royce said it is part of an existing £7 billion to £9 billion buyback program for 2026 through 2028, rather than a separate increase to that overall plan. It has substantially completed its previously announced £2.5 billion buyback for 2026.
The company maintained guidance for £4.7 billion to £4.9 billion in underlying operating profit and £3.8 billion to £4 billion in free cash flow this year. It said progress in the second half had increased its confidence in those targets.
In civil aerospace, Rolls-Royce said demand remained strong in both widebody and business aviation. Its large-engine order backlog has grown to around 2,500 engines, with recent orders including 70 Trent 7000 engines for Avolon and 22 for the Cathay Group.
Large-engine flying hours rose 4% in the first ten months of 2026 compared with a year earlier, reaching 114% of 2019 levels. The company expects the full-year figure to be near the lower end of its previous 115% to 120% range.
Rolls-Royce also reported strong demand in defence and growth in Power Systems, led by power generation and government customers. It said it will revisit its medium-term targets when it reports full-year results in February.