London, May 9, 2026, 15:15 BST
- Rolls-Royce plans to kick off field testing of its hybrid mtu haul-truck drive in autumn 2026.
- Friday brought losses for shares, erasing some of the gains from earlier in the week. Guidance for 2026 is still intact.
- Investors want to see if Power Systems can generate growth outside of civil aerospace.
Rolls-Royce Holdings plc plans to ramp up its mining power efforts, with field testing for a new haul truck hybrid drive slated to kick off in autumn 2026. The system blends mtu Series 4000 diesel engines with an electric drivetrain. According to the company, the hybrid setup could trim fuel consumption and CO2 emissions by as much as 30%, depending on the mine’s route. Cobus van Schalkwyk, who heads global mining at Rolls-Royce Power Systems, called the technology an “effective lever” for reducing open-pit transport costs and emissions. Rolls-Royce
Rolls-Royce shares are being tugged in two directions: long-haul air travel is rebounding—good news for engine-service revenue—but doubts remain over whether newer industrial power units can pick up more slack. The stock dropped 3.11% Friday, closing at £12.20, according to MarketWatch data. Rolls-Royce lagged the FTSE 100, which slipped just 0.43%, and shares now trade 14.1% under their Feb. 26 peak.
This mining setup is being pitched as a retrofit, not as a ready-to-deploy commercial product. “Hybrid” in this context refers to batteries that soak up energy during braking on descents, then deliver that stored power to the wheel motors for uphill hauls—lightening the burden on the diesel engine. Rolls-Royce hasn’t disclosed a mining client or put a price tag on any deal.
The move pushes the company’s Power Systems division into a competitive space where others, including Cummins, have already staked claims. Back in February, Cummins announced it put a 300-ton Komatsu mining haul truck to work in Chile—retrofitted with its First Mode hybrid-electric system. Future upgrades using the same tech are targeting up to 30% cuts in both fuel consumption and emissions.
Another reference is Caterpillar. Back in December, BHP announced it had received two electric haul trucks at its Jimblebar iron ore site in Australia’s Pilbara, delivered as part of a project with Rio Tinto and Caterpillar. The miners are putting battery-electric technology up against diesel at scale.
Aircraft remain at the core of the bigger engine maker’s business. Rolls-Royce supplies engines for widebody jets like the Airbus A350 and Boeing 787; airlines pay for many of these engines by the hour, tracking what the industry calls engine flying hours. Last week, Reuters reported that Rolls-Royce left its 2026 guidance unchanged even with the disruption from the Iran war. CEO Tufan Erginbilgic told investors the company expects to “fully mitigate” the financial impact. Reuters
Rolls-Royce is sticking with its 2026 guidance: underlying operating profit still seen between £4.0 billion and £4.2 billion, free cash flow in a £3.6 billion to £3.8 billion range. In the first quarter, large engine flying hours climbed 5%, now sitting at 115% of 2019 figures, the company noted in its April 30 AGM trading update.
Most analysts remain upbeat, if a bit wary after the stock’s sharp rise. Out of 19 tracked by MarketScreener, the average view is still “buy,” with a mean target price at £14.12 and the lowest target at £11.01. Shares last closed at £12.20. MarketScreener
Jefferies’ Chloe Lemarie called April’s trading update “reassuring,” according to Proactive Investors, highlighting how Rolls-Royce’s long-term service agreement model has held up even as air traffic and Middle East risks linger. The broker also spotted the company’s mention of “further confidence” in its outlook—phrasing Jefferies said often comes before Rolls-Royce bumps its forecasts. Proactiveinvestors UK
Risks aren’t off the table. The haul-truck system is still being field-tested, and actual savings hinge on specific mine layouts and how operations run. If mining customers pull back on capital spending, adoption could slow. Over in aerospace, the stock’s reliance on engine flying-hour recovery could take a hit from another jolt to long-haul demand or a jump in fuel prices.
Right now, Rolls-Royce wants investors to see more than just a jet engine rebound. The mining pilot stands out as a concrete test: can a business famous for aviation muscle actually move its lower-emission power setups into one of industry’s most diesel-dependent sectors?
