London, June 17, 2026, 09:20 BST
- Rolls-Royce traded 1.8% higher in late London numbers. The stock ended Tuesday up 2.55%, beating the FTSE 100 which added 0.61%.
- Videberg Kraft in Sweden chose Rolls-Royce SMR instead of GE Vernova to build three small modular reactors on the country’s west coast.
- The next dates for investors are Rolls-Royce’s energy-transition and power-systems events coming up late June, with half-year results set for July 30.
Rolls-Royce Holdings plc shares climbed again in early London trading Wednesday, hitting a new year high. Investors have kept buying the British engine maker as its nuclear push gains traction.
The stock was quoted at 1,418.4p to sell and 1,418.6p to buy in delayed trading, up 25.4p, or 1.82% from Tuesday’s close. AJ Bell data put the session high at 1,420.6p, valuing the company around £117.6 billion.
Rolls-Royce ended Tuesday up 2.55% at £13.93, beating the FTSE 100’s 0.61% gain, after a strong session. Trading volume lagged the 50-day average, showing the jump happened on lighter-than-normal activity instead of broad buying.
Sweden triggered the move. Vattenfall’s Videberg Kraft project went with Rolls-Royce SMR for small modular reactors, passing over GE Vernova’s offer. These nuclear units are meant to be built in modules and repeated as needed. The British government put the expected deal value in the several billion pound range.
Vattenfall is planning three 470-megawatt reactors close to the Ringhals nuclear site. The company said the new units could generate around 12 terawatt hours per year. Rolls-Royce SMR put that figure at about 6% of Sweden’s yearly electricity usage.
Vattenfall CEO Anna Borg said, “This project will now be turned into reality.” Rolls-Royce chief Tufan Erginbilgic said the deal puts the firm into a “market that is growing and attracting significant international interest.” Reuters
Nuclear is starting to look like a real second act for Rolls-Royce, on top of civil aerospace, defence and power systems, which have been the main drivers for shareholders. The company said landing Sweden adds to existing SMR contracts in the UK and Czech Republic. That puts Rolls-Royce on the hook for several European projects in a sector where there still aren’t clear commercial leaders.
Rolls-Royce’s core engine division is still what matters for investors. The company repeated its outlook for 2026 operating profit, sticking with a range of £4.0 billion to £4.2 billion in its April trading update. Free cash flow is still seen between £3.6 billion and £3.8 billion. Rolls-Royce said large engine flying hours hit 115% of the 2019 mark in Q1, which drives its aftermarket business.
Defence saw more action. Rolls-Royce Power Systems took the wraps off its mtu PowerPack Xelerate hybrid propulsion system at Eurosatory in Paris this week. The company said the system pairs an mtu 10V 199 engine with an electrified ZF transmission, offering over 1,400 kW for heavy tracked vehicles.
But the Sweden deal won’t bring in cash soon. The commercial terms aren’t finalized, and the first reactor isn’t expected until the mid-2030s. Progress depends on permits and regulatory sign-off. There’s also a planned 60% state stake in Videberg Kraft that still needs a nod from Sweden’s parliament, so there’s political and execution risk.
Rolls-Royce will go to the RBC Energy Transition Conference on June 25, then to a Power Systems teach-in at J.P. Morgan on June 26. Half-year results come July 30. Investors want to see if management can keep up cash-flow momentum and move ahead on the £2.5 billion 2026 buyback.
