London, July 6, 2026, 10:02 BST
- Rolls-Royce shares fell 0.98% to 1,489.40p as of 09:51 BST. The FTSE 100 (INDEXFTSE:UKX) was up 0.32% at the time.
- The announced £2.5 billion buyback for 2026 is about 2.0% of the company’s £124.43 billion market cap.
- Defence headlines remained a tailwind after the £4.6 billion GCAP contract and new investment at the Derby sub site. Investors are watching for the July 30 half-year cash numbers.
Rolls-Royce Holdings plc LON:RR dropped in early London trading on Monday, off 14.80p to 1,489.40p as of 09:51 BST. Shares trailed the FTSE 100, which gained 34.52 points at 10,713.55 just before 09:40 BST.
Rolls-Royce shares slipped only slightly. The attention is on the numbers behind the buyback. With a market cap showing £124.43 billion on Google Finance, the £2.5 billion buyback book for 2026 would be about 2.0% of Rolls-Royce. The larger £7 billion to £9 billion buyback for 2026-2028 comes to between 5.6% and 7.2% of the firm.
| Measure | Confirmed figure | Read-through at current market value |
|---|---|---|
| Market cap | £124.43 bln | Used for yield math |
| 2026 buyback part | £2.5 bln | About 2.0% of market cap |
| Finished by April 30 | Over £750 mln | About 0.6% of market cap |
| Left as of April 30 | About £1.75 bln | About 1.4% of market cap |
| Buyback plan 2026-2028 | £7 bln-£9 bln | About 5.6%-7.2% of market cap |
This is important for shareholders, with the stock now just 2.8% off its 52-week high of 1,532.60p, after climbing about 55% from the 52-week low. Buybacks might lift per-share figures, but at this price the market wants cash returns, not just buybacks.
Rolls-Royce CEO Tufan Erginbilgic said in the April trading update the company had a “strong start to the year”. Rolls-Royce kept its 2026 outlook for underlying operating profit at £4.0 billion-£4.2 billion and free cash flow at £3.6 billion-£3.8 billion. Rolls-Royce
Analysts polled by the company in April see 2026 free cash flow at £3.734 billion. A £2.5 billion buyback for 2026 would take up roughly 67% of that, if the whole buyback goes ahead this year, according to .
| Rolls-Royce consensus | FY2026 | FY2027 | FY2028 |
|---|---|---|---|
| Underlying revenue | £22.709 bln | £25.054 bln | £27.540 bln |
| Underlying EBIT | £4.132 bln | £4.735 bln | £5.425 bln |
| Free cash flow | £3.734 bln | £4.438 bln | £5.150 bln |
| EPS | 37.8p | 44.1p | 51.8p |
| DPS | 12.4p | 14.4p | 16.9p |
Shares got a boost from order news. Reuters said Friday that Britain, Italy and Japan handed out a £4.6 billion contract to Edgewing for the next phase of the Global Combat Air Programme fighter jet. Reuters reported Edgewing is owned by BAE Systems LON:BA, Leonardo BIT:LDO and Japan Aircraft Industrial Enhancement. UK defence readiness minister Luke Pollard said the contract is a “major step forward.” Reuters
Rolls-Royce is coming into GCAP through propulsion. Edgewing reports Rolls-Royce is working in the group building the fighter’s power and propulsion system. The program aims for service entry in 2035.
Rolls-Royce Submarines said Friday it has started early work on a new factory at its Raynesway site in Derby. The move is part of a plan to double the facility, with over 100,000 square metres of new manufacturing and office space and 1,170 new skilled jobs. The project is linked to submarine programs in the UK and Australia.
Abi Clayton, who runs Rolls-Royce Submarines, said the expansion would free up “much-needed manufacturing capacity”. Rolls-Royce says its submarines business has over 5,500 employees and handles design, production and support for the Royal Navy’s submarine reactors. Rolls-Royce
Rolls-Royce said it will report half-year results for 2026 on July 30.
