London, May 18, 2026, 10:03 (BST)
- Rolls-Royce traded 1.1% lower at 1,127.40p in a delayed London session, after falling 4.8% on Friday.
- The drop puts pressure on investor faith in the engine maker’s 2026 profit target and its buyback plan.
- The London Stock Exchange had a normal trading session. The next holiday for the market is set for May 25.
Rolls-Royce Holdings shares dropped in London Monday, building on Friday’s slide as investors continued to cut positions in the FTSE 100 stock after its strong run.
The shares were last seen at 1,127.40 pence, off 12.60p, or 1.1%, according to Davy with prices 20 minutes delayed at 10:02 a.m. in London. They moved in a range from 1,115.80p to 1,133.20p so far.
Rolls-Royce is seen as a key UK industrial turnaround stock, so its share move will be watched. With shares off their highs, investors are now weighing their patience after a strong rally, a big buyback and a valuation that’s still very much tied to how the company delivers.
London markets stayed open today. The London Stock Exchange trades 8:00 a.m. to 4:30 p.m. BST, Monday to Friday. The exchange’s next scheduled holiday is May 25 for the spring bank holiday.
Rolls-Royce fell 4.78% to finish at £11.40 on Friday, trailing the FTSE 100’s 1.71% decline. MarketWatch data showed trading volume at 24 million shares, below the 50-day average of 37.7 million.
Rolls-Royce gave its latest trading update without issuing a new profit warning. The company stuck to its 2026 guidance for underlying operating profit between £4.0 billion and £4.2 billion and free cash flow in the range of £3.6 billion to £3.8 billion. CEO Tufan Erginbilgic said Rolls-Royce had “a strong start to the year” and expected to “fully mitigate” the current Middle East disruption on finances. Rolls Royce
The company said it has finished over £750 million of the 2026 part of its £7 billion to £9 billion buyback. The programme lets the company repurchase its own shares and can push up earnings per share if profits stay strong.
Rolls-Royce’s large-engine flying hours are now at 115% of 2019 levels, Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said after the update. That’s important for maintenance revenue. Chiekrie noted the Middle East conflict has caused concerns around near-term demand but pointed out that most airline capacity cuts have been with narrowbody jets, which isn’t a market Rolls-Royce serves.
That split matters. The CFM International venture between GE Aerospace and Safran is a key narrowbody engine supplier. Rolls-Royce leans more on widebody jets and service revenue. Reuters said in February that CFM and Pratt & Whitney fight for Airbus narrowbody engine business, so single-aisle moves don’t hit Rolls-Royce the same way.
Risk comes from timing here. Chiekrie said Rolls-Royce still has to execute, warning that newer engines have had more maintenance issues than buyers expected, even though upgraded parts are being used. If management misses on durability fixes, margin growth, or buybacks, shares could take a hit after their big rally of the last few years.
