London, June 20, 2026, 15:05 BST
- Rolls-Royce closed Friday at 1,408.2 pence, gaining 7.7% over the week but still 1.1% under the 1,424.2 pence high from Wednesday.
- Rolls-Royce SMR won a bid in Sweden, beating GE Vernova Hitachi for three 470-megawatt reactors. The first could be up by the mid-2030s.
Rolls-Royce Holdings closed out the week just below its 52-week high, finishing Friday down 0.1% at 1,408.2 pence. That’s still up 7.7% for the week. The FTSE 100 fell about 1% over the same stretch, putting Rolls-Royce almost nine points ahead of the index.
Rolls-Royce’s gap is drawing attention. Investors this week went beyond the civil-aerospace story and started pricing in more upside from its nuclear and power segments. Shares gained almost 4% Monday after news of the Swedish deal, helped in part by a wider market relief rally.
Rolls-Royce landed a deal with Videberg Kraft, which is backed by Vattenfall and Swedish industrial groups, to supply three reactors planned next to the Ringhals plant. These small modular reactors—SMRs—are meant for factory-style assembly, not the mostly on-site builds of older designs. They could put out around 12 terawatt-hours each year, which is close to 6% of all the electricity used in Sweden.
Rolls-Royce SMR landing the Swedish contract puts it ahead in Europe with multiple firm deals, CEO Tufan Erginbilgic said. For shareholders, bookings in Sweden, Britain, and the Czech Republic offer commercial proof in three countries. The money, though, won’t come in soon.
Vattenfall CEO Anna Borg said the move is “a major step forward”. Martin Darelius, now acting head of new nuclear, said Rolls-Royce had “the strongest conditions for delivering a successful project” after four years of review. Their views matter, but actual planning is just beginning. Vattenfall
Rolls-Royce hit a key operational moment on Friday as its Pearl 10X engines took the Dassault Falcon 10X on its first flight from Mérignac, near Bordeaux. This kicks off the flight-test and certification phase for the business jet. Philipp Zeller, Rolls-Royce’s SVP for Dassault business aviation, called it “an important milestone”. The programme now counts more than 4,000 test hours. Rolls-Royce
The share-price move has narrowed the valuation debate for now. Among 17 analysts, the median 12-month target is 1,400 pence, just under where shares settled on Friday. Forecasts still run from 1,101 up to 1,740 pence. The range reflects uncertainty over future margin improvement, cash flow, and the final shape of the SMR programme’s economics.
Rolls-Royce held its 2026 target for underlying operating profit at £4.0 billion to £4.2 billion and stuck with a free cash flow goal of £3.6 billion to £3.8 billion. Free cash flow measures cash after operating and capital costs. Power Systems orders for gas and diesel engines jumped about 50% in the first quarter from a year earlier. Rolls-Royce also has a £2.5 billion share buyback in place for 2026.
The rally narrows the cushion for setbacks or weak trading. The Swedish reactors still need permits, regulators to sign off, funding and final commercial terms, and they won’t produce power before the mid-2030s. Civil Aerospace faces supply-chain issues and disruption in the Middle East. Rolls-Royce says it plans to offset the current hit, but it’s watching for further risks.
RBC’s Energy Transition Conference is set for June 25, with J.P. Morgan’s Power Systems presentation following on June 26. Investors want to hear more on data-centre power demand and timing for orders turning into revenue and cash. The company’s next earnings update comes with its July 30 half-year report.
