LONDON, April 22, 2026, 12:13 BST
Rolls-Royce Holdings plc has picked up two new naval propulsion contracts. The company’s MT30 turbine is set for installation on Australia’s next round of upgraded Mogami-class frigates, while mtu engines will go into another 10 U.S. Coast Guard fast response cutters. These orders should help lift momentum for the London-listed aerospace and defence group’s marine power segment, though shares are still struggling.
It’s clear enough why the stakes are higher now: every fresh contract gets weighed against tougher expectations. Back in February, Rolls-Royce projected underlying operating profit of £4.0 billion to £4.2 billion for 2026, set out a hefty £7 billion to £9 billion buyback through 2028, and put the final dividend at 5 pence per share. That profit figure—Rolls-Royce’s go-to number—excludes certain one-offs.
News barely moved the shares. Rolls-Royce last traded at 1,149.6 pence on TradingView, a 4.5% drop in the past 24 hours. According to the company’s dividend calendar, the ordinary shares are set to go ex-dividend April 23, with a payout to follow on June 3.
Australia’s upgraded Mogami-class fleet—up to 11 frigates—will use the MT30, according to Rolls-Royce. Mitsubishi Heavy Industries is set to construct the first three ships in Japan; the Royal Australian Navy expects the initial vessel in 2029, aiming for it to enter service the following year.
On April 18, Canberra locked in contracts for its first three frigates, a step in its wider effort to beef up the surface fleet. According to the Australian government, each ship will carry a 32-cell vertical launch system, surface-to-air and anti-ship missiles, and offer a range reaching 10,000 nautical miles. Reuters pegged the initial Australia-Japan agreement at A$10 billion, or roughly $7 billion.
“For over 100 years, Rolls-Royce has been an integral partner delivering power and propulsion to Australia for air, land, and sea,” said Alex Zino, director of business development and future programmes at Rolls-Royce Defence. A marine gas turbine is basically a jet engine refitted for naval use, either to propel ships or supply onboard electricity. Rolls-Royce
This order from the U.S. Coast Guard stands apart. Rolls-Royce confirmed it’s been tapped to deliver mtu 20V 4000 M93L engines for another 10 Sentinel-class fast response cutters, taking the overall order to 77 ships. Each cutter is set to run on a pair of 4,300 kW engines, pushing speeds north of 28 knots.
Scott Hanson, who oversees governmental sales in North America for Rolls-Royce’s Power Systems division, said Bollinger Shipyards—a longtime client—has “placed its trust” in Rolls-Royce and mtu engines. According to Rolls-Royce, Bollinger has already handed over 61 fast response cutters equipped with those engines. Rolls-Royce
Back in September, the Coast Guard tapped a $507 million option with Bollinger, greenlighting the start of work on 10 additional fast response cutters. That lifted the total ordered in this contract to 77, up from 67. For Rolls-Royce, that timing matters: this engine pick comes on the heels of a concrete U.S. fleet expansion, not just a blueprint or a wishlist.
On April 20, Rolls-Royce landed a 10-year, firm-fixed-price maintenance deal with the U.S. Coast Guard to handle dockside upkeep and emergency fixes for 10 National Security Cutters using mtu Series 1163 engines. “It’s a sign of our commitment to the U.S. Coast Guard,” said Willy Tirado-Sarmiento, vice president of customer support Americas. Rolls-Royce
Competition remains anything but gentle. GE Aerospace touts its LM2500 marine gas turbine as the pick for 39 navies, boasting over 1,500 units in service—a clear signal of the stakes as Rolls-Royce eyes fresh surface-ship wins for its MT30.
Execution and price—those are the sticking points. Rolls-Royce hasn’t revealed the dollar amounts tied to the two propulsion wins it secured on April 21. Naval contracts are notoriously vulnerable: shipyard delays, stretched defence budgets, or tangled supply chains can easily push schedules off course. Shares hit a record on Feb. 26, data from TradingView show, but even with healthy orders coming in, investors might think the turnaround story is already baked into the price.
