LONDON, March 26, 2026, 13:30 GMT
Rolls-Royce Holdings was back in focus on Thursday after the company said its Power Systems arm had won one of the largest defence contracts in its history, supplying around 200 mtu propulsion units for Germany’s Puma infantry fighting vehicle. The stock had closed up 2.45% at 1,194 pence on Wednesday, though that still left it about 16% below its 52-week high of 1,420 pence set on Feb. 26. 1
The timing matters for shareholders because Rolls-Royce has already enjoyed a sharp run-up on stronger earnings, higher guidance and a 7 billion-to-9 billion pound buyback plan, a programme in which the company repurchases its own stock. Fresh defence work now has to land against that tougher base. 2
Rolls-Royce said deliveries on the German order would start in 2028 and that it was expanding production capacity to meet demand. “This order sends a strong signal of confidence in our technology and our industrial capabilities,” Joerg Stratmann, chief executive of Rolls-Royce Power Systems, said. 3
Elsewhere in defence, Britain and Turkey signed a multi-billion-pound training and support agreement for Typhoon jets on Wednesday that involves Rolls-Royce alongside BAE Systems and Leonardo UK. The deal adds another recent marker for investors tracking the company’s exposure to rising European military spending. 4
A separate company statement on Tuesday pointed to more factory spending in the jet-engine business. Rolls-Royce said a 19.3 million pound investment in its Rotherham blade-casting plant, backed by a 2 million pound regional grant, would fund extra specialist equipment and help double output by 2030. 5
The stock’s bigger move came last month, when Rolls-Royce said 2025 underlying operating profit rose 40% to 3.46 billion pounds, launched a 7 billion-to-9 billion pound buyback for 2026-2028 and raised both 2026 forecasts and mid-term targets. The higher profit-margin goals brought it into line with GE Aerospace in the widebody, or long-haul, engine market, and Interactive Investor analyst Richard Hunter called the numbers “sparkling.” 2
The buyback is already being carried out. A filing published on Wednesday showed Rolls-Royce had repurchased 21.46 million shares since the programme began, at a weighted average price of 1,246.3 pence, and intended to cancel them. 6
But risks remain. Airlines have accused engine makers of lifting repair prices despite durability shortfalls and long maintenance queues, and Rolls-Royce has said its pricing “reflects supply chain disruption coming out of COVID” and higher costs in the supply chain. 7
