LONDON, March 26, 2026, 13:30 GMT
Shares of Rolls-Royce Holdings drew attention Thursday after the company announced its Power Systems division had secured one of its biggest-ever defense deals—roughly 200 mtu propulsion units are headed to Germany’s Puma infantry fighting vehicle. On Wednesday, the stock finished 2.45% higher at 1,194 pence, but that’s still about 16% down from the 52-week peak of 1,420 pence reached on Feb. 26.
Timing is key for shareholders here. Rolls-Royce shares have already surged, fueled by stronger earnings, upgraded guidance, and that hefty 7 billion-to-9 billion pound buyback—the company buying back its own shares. Any new defence contracts have to stack up against this higher bar.
Deliveries to Germany are scheduled to kick off in 2028, Rolls-Royce said, adding that it’s ramping up production to handle the surge in demand. “This order sends a strong signal of confidence in our technology and our industrial capabilities,” Joerg Stratmann, chief executive of Rolls-Royce Power Systems, said in a statement. mtu Solutions
Britain and Turkey inked a multi-billion-pound pact on Wednesday to provide training and support for Typhoon jets, tapping Rolls-Royce, BAE Systems, and Leonardo UK for the project. For investors, it’s one more signal of Rolls-Royce’s growing footprint in Europe’s defense build-up.
On Tuesday, the company released a separate statement highlighting fresh investment for its jet-engine operations. Rolls-Royce plans to put 19.3 million pounds into its Rotherham blade-casting facility, using a 2 million pound regional grant to add more specialist equipment. The upgrade is expected to help the site double output by 2030.
The real surge for the stock happened last month. Rolls-Royce reported a 40% jump in 2025 underlying operating profit, reaching 3.46 billion pounds. It also rolled out plans for a hefty 7 billion-to-9 billion pound buyback covering 2026 through 2028, while lifting its forecasts for 2026 and pushing up medium-term targets. With those improved margin ambitions, Rolls-Royce is now standing toe-to-toe with GE Aerospace in the long-haul engine segment. “Sparkling” is how Interactive Investor’s Richard Hunter summed up the numbers. Reuters
The buyback is underway. According to a filing released Wednesday, Rolls-Royce has snapped up 21.46 million shares since launching the program, paying an average of 1,246.3 pence per share. The company plans to cancel the repurchased stock.
Still, challenges persist. Airlines say engine manufacturers have hiked repair costs even as maintenance waits drag on and engines fall short on durability. Rolls-Royce, for its part, argues that current prices “reflect supply chain disruption coming out of COVID” and increased costs throughout its network. Reuters
