London, June 24, 2026, 09:35 (BST)
Rolls-Royce Holdings moved up 0.39% to 1,396.6p by 0913 BST in London, with delayed data showing the stock slightly higher after a filing revealed the company bought 584 shares last week at an average price of 1,397.64p.
Shares finished Tuesday off 1.46% at 1,391.2p. The FTSE 100 fell 0.09%. The stock is still trading about 2% under the 52-week high of 1,424.2p reached June 17.
Rolls-Royce bought fewer shares this week than before, picking up less than the 2.86 million shares it bought in the prior week and well below the 5.41 million from June 2 to June 8. The average paid was about 1,241p and 1,252p during those periods. Rolls-Royce gave no reason for the big drop in volume.
Rolls-Royce has spent about £848.4 million on its buyback so far, picking up 70.59 million shares at an average price of 1,201.79p. That’s 36.9% of the full £2.3 billion programme. The pace is roughly in line with the calendar—about 39% of the period from the February 26 launch to the December 23 deadline has passed. The cash rate is less eye-catching.
Rolls-Royce is running the buyback in tranches, with Morgan Stanley and UBS handling day-to-day trades separately. Both banks act under instructions set before the buyback started. CEO Tufan Erginbilgic told investors in February that £2.5 billion of share repurchases would finish this year, counting a previous £200 million round.
At Wednesday’s quoted price, £1.45 billion gets around 104 million more shares, or 1.2% of shares out. The company already bought 70.59 million shares, about 0.84% of the total. If the price stays where it is, the whole £2.3 billion buyback would trim the share count by about 2.1%. Shares are up 16% from the average price paid in the programme.
Rolls-Royce is valued at around £116.7 billion. Analysts put 2026 free cash flow at £3.73 billion, which works out to a free-cash-flow yield of 3.2%. That means Rolls-Royce trades for about 31 times its expected cash flow for the year. By 2028, consensus is for free cash flow to rise to £5.15 billion. That would be a 4.4% yield using the same market value.
Analysts set an average 12-month target of 1,425p for the stock, which is roughly 2% higher than where shares closed Wednesday. The range is wide, with estimates between 1,101p and 1,740p. The lowest target puts about 21% downside on the table, while the high leaves around 25% upside.
Power Systems landed new business. Rolls-Royce said Tuesday its 2026-2029 framework deal with yacht maker Overmarine includes 64 mtu Series 2000 engines and will see its NautIQ Bridge systems used for the first time. The size of the contract wasn’t given. Gianluca Bononi, managing director for Rolls-Royce Power Systems in Italy, said yacht builders want systems that make operating simpler. Overmarine CEO Maurizio Balducci said integration helps with construction and comfort for owners.
Rolls-Royce will host a Power Systems investor event on June 26. The Power Systems unit’s operating margin jumped to 17.4% in 2025 from 13.1%, driven by data center and government power demand. Analysts say what matters now for group valuation is if margins can stay close to that mark, not the under-wraps yacht order.
Rolls-Royce’s 584-share week might signal a pause in buying, not a move away from supporting the price. The risk is clear: missing the £3.6 billion-£3.8 billion 2026 cash target means shares trade at an even richer multiple. Half-year results come out July 30.
