London, April 23, 2026, 15:15 BST
This week, Rolls-Royce Holdings disclosed fresh naval contracts in both Australia and the United States, extending a series of defence-related announcements from the UK engineering group. The latest updates: equipment for Australian frigates, more U.S. Coast Guard cutters, plus a standalone Coast Guard maintenance deal.
Timing is key here. Rolls-Royce shares went ex-dividend on Thursday, so anyone picking them up now won’t get in on the next payout. The annual meeting is set for April 30, and the 5 pence final dividend lands June 3.
Investors now have to factor in new order flow against the ambitious return blueprint announced in February. Rolls-Royce posted underlying operating profit for 2025 at 3.462 billion pounds, with guidance pointing to 4.0 billion to 4.2 billion pounds for 2026. The company has also mapped out a buyback between 7 billion and 9 billion pounds over 2026-2028, including 2.5 billion pounds earmarked for this year.
Rolls-Royce has landed a deal in Australia for its MT30 marine gas turbine, which will power the nation’s upcoming general-purpose frigates—a program that could see as many as 11 ships. The initial trio is set for construction in Japan, with the first frigate arriving in 2029 and entering service in 2030. “Delighted to continue this long-standing partnership,” said Alex Zino of Rolls-Royce Defence. Rolls-Royce
Rolls-Royce Power Systems has landed a contract to deliver mtu 20V 4000 M93L engines for 10 more Sentinel-class Fast Response Cutters, bringing the U.S. Coast Guard’s program up to 77 vessels. “Proven performance and reliability” is how Scott Hanson, vice president for governmental sales in North America, described the engines after the award. Rolls-Royce
Just a day before, Rolls-Royce Power Systems in the U.S. announced it had secured a 10-year deal with the Coast Guard to handle maintenance for the National Security Cutter fleet—10 ships equipped with mtu Series 1163 engines. Willy Tirado-Sarmiento, the company’s vice president for customer support in the Americas, called the contract a sign of Rolls-Royce’s “firm commitment” to the Coast Guard. The agreement spans scheduled dockside maintenance plus worldwide repair support. Rolls-Royce
Defence contracts aren’t the only wins stacking up. Rolls-Royce SMR on April 13 inked a two-stage deal with Great British Energy-Nuclear to get the UK’s first small modular reactors—SMRs—off the ground. These are factory-built, smaller than traditional nuclear plants, and meant for speedier deployment. “Already generating returns,” chief executive Tufan Erginbilgic said of the projects. Rolls-Royce
Rolls-Royce keeps getting stacked up against its aerospace competitors, even as its defense business grows more prominent. Back in February, Reuters said the company is aiming for mid-term margins to match GE Aerospace — still the big competitor in widebody jet engines. Richard Hunter at Interactive Investor called the latest annual results “sparkling.” Reuters
Even so, execution looms as the immediate hurdle. Back in February, Reuters noted that Rolls-Royce was contending with ongoing supply-chain and tariff headwinds. The company later confirmed it had factored a supply-chain cash hit of between 150 million and 200 million pounds into its free cash flow forecast for 2026.
