LONDON, April 6, 2026, 13:31 BST
Rolls-Royce Holdings drew attention Monday, even as the London market was closed for Easter. A filing from last week revealed the jet engine group snapped up 532,844 shares on March 31, marking them for cancellation through its ongoing buyback. Purchase prices ranged from 1,083 to 1,130.5 pence apiece. That brings the cumulative total bought back since the programme kicked off to 28.2 million shares.
The timing is key here: Rolls-Royce has made shareholder returns the centerpiece of its equity pitch. The company has committed to buybacks worth up to 2.5 billion pounds in 2026—just the opening round of a larger 7 billion to 9 billion pound plan stretching through 2028.
The stock settled at 1,188.5 pence on April 2, down roughly 16.3% from the 1,420 pence high reached after February’s results. That retreat highlights how the rally after earnings has faded, despite the buyback remaining on the table.
Rolls-Royce in February reported a 40% jump in 2025 underlying operating profit, hitting 3.46 billion pounds, with guidance set for 4.0 billion to 4.2 billion pounds in 2026. According to Reuters, gains came off the back of robust airline-engine servicing and heightened power systems demand from data centres. Management laid out margin targets to match GE Aerospace, the main competitor on big long-haul jet engines. Richard Hunter at Interactive Investor described the results as “sparkling,” though he noted there are still “unfulfilled ambitions” for the group. Reuters
Chief executive Tufan Erginbilgic said Rolls-Royce’s “transformation continues with pace and intensity,” adding that the company “navigated challenges from supply chain to tariffs” in 2025. The balance sheet, he noted, is strong enough for the group to kick off the multi-year buyback. Rolls-Royce
Supply chain troubles remain the big variable here. Rolls-Royce has already baked a 150 million-200 million pound drag from parts shortages into its free cash flow outlook for 2026—a figure that tracks what’s left after operations and investment. Another squeeze on supply could push back both engine deliveries and the essential maintenance shop visits that come after a sale.
One unresolved issue lies outside Rolls-Royce’s main civil aerospace and defence operations. Back in February, Reuters reported the company was looking for government support for its UltraFan 30 demonstrator project—this after the Financial Times put the initial funding request in the range of 100 million to 200 million pounds.
Rolls-Royce has its annual general meeting scheduled for April 30 in Derby. Investors listed as shareholders by April 24 are set to collect the 5 pence final dividend on June 3, pending approval.
