LONDON, June 26, 2026, 09:02 BST
- Rolls-Royce Holdings plc LON:RR. slipped 0.61% to 1,422.80p at 08:46 BST. The FTSE All-Share was down 0.35% at the same time.
- The stock is up 52.69% for the past year and trades above the 1,400p median 12-month target according to 17 analysts.
- Rolls-Royce is holding a Power Systems teach-in on Friday. Half-year results are due July 30.
- Power Systems margin moved up to 17.4% in 2025, compared to 13.1%. The increase was driven by power generation and government contracts.
Rolls-Royce Holdings plc LON:RR. traded down in the first part of Friday’s London session, slipping in early moves. Shares didn’t fall much, with the real focus on the valuation test ahead for the engine maker.
The stock traded at 1,422.80p, off 8.80p, as of 08:46 BST, Fidelity data showed. Investors Chronicle, in numbers delayed to 08:34 BST, showed shares up 52.69% over the past year, a beta at 1.517, with 17 analysts putting targets between 1,101p and 1,740p. Median sits at 1,400p, under the last close of 1,432p.
The gap shifts the question for shareholders. The stock isn’t trading as a simple recovery bet with cheap upside anymore. Now it needs new evidence that earnings outside civil aerospace are bringing in enough cash to meet the 2028 plan.
Rolls-Royce will hold a Power Systems teach-in this Friday with J.P. Morgan, a unit of JPMorgan Chase & Co NYSE:JPM. The company’s next main financial update is on July 30, when it’s set to report 2026 half-year results.
Power Systems posted the clearer margin number for 2025. The unit’s operating margin jumped 4.3 points to 17.4%, a touch higher than the group underlying margin at 17.3%. Rolls-Royce said the gain was led by power generation—helped by data-centre demand—and government contracts.
Rolls-Royce has tied some of its growth plans to that unit. Back in February, the company said it would boost power-generation output in Germany and expand its Aiken and Mankato, U.S. locations as it targets data-center demand. Rolls-Royce also mentioned its next-gen Series 4000 engine set for a 2028 launch, aimed at power-generation and government sectors.
Rolls-Royce aims for underlying operating profit between £4.0 billion and £4.2 billion and free cash flow of £3.6 billion to £3.8 billion in 2026. Targets for 2028 move higher, with the company guiding to £4.9 billion to £5.2 billion of underlying operating profit and £5.0 billion to £5.3 billion in free cash flow. The group plans a £7 billion to £9 billion share buyback stretching from 2026 to 2028. CEO Tufan Erginbilgic said in February that £2.5 billion of that buyback would be done this year.
Business-jet services is getting a new data product this week. Rolls-Royce and Bombardier Inc (TSE:BBD.B) announced Thursday a health-monitoring program for Global 5500 and Global 6500 jets. The new service uses Bombardier’s Smart Link Plus alongside Rolls-Royce’s engine vibration and health monitoring unit installed on the Pearl 15 engine.
Rolls-Royce said its service lets users tap up to 10,000 engine health data points. Engine data uploads automatically in flight and after landing. The company said selected Global 5500 and 6500 owners can get installation at Bombardier service centers, and new production models now come with the tech as standard.
Bombardier’s VP for customer support, Anthony Cox, said the partnership is about helping customers “keep maintenance costs in check.” Andy Robinson, who heads business aviation services at Rolls-Royce, called the Pearl 15 monitoring unit the “key to unlock” more cloud analytics and AI work for business aviation. Rolls-Royce
Rolls-Royce added to its board on Wednesday, naming Gretchen Watkins, ex-Shell USA president, to join July 1. Alessandra Genco, who was group finance chief at Leonardo SpA BIT:LDO, will come on board Sept. 1. Chair Anita Frew said Watkins’ background in transformation and safety will be “of great value” in board talks. Investegate
Cash conversion is the key risk at this level. Rolls-Royce is still calling for a £150 million to £200 million drag on 2026 free cash flow from supply chain strain, about the same as in 2025.
