LONDON, March 20, 2026, 14:12 GMT
Rolls-Royce Holdings ticked up 0.1% to 1,191 pence by 1056 GMT on Friday, holding its ground while London’s FTSE 100 dropped another 0.1% and was on track for a third week in the red. The engine maker looked steadier than the index, which remains under pressure from oil and interest rate concerns.
The stock’s move stands out, with Rolls-Royce still one of the FTSE 100’s standout industrial names since last month’s results and its shareholder return plan nudged the index to a record. But even after that jump, shares are trading about 16% below the 1,420-pence high for the year. That suggests February’s burst of optimism has collided with a tougher market mood.
Rolls-Royce disclosed in a Friday filing that it snapped up 2.47 million of its own shares on March 19, part of the 2.3 billion-pound buyback program rolled out following its annual results. Those shares are heading for cancellation, the group confirmed. To date, Rolls-Royce has repurchased a total of 17.57 million shares since the initiative kicked off, at a weighted average of 1,265.84 pence per share.
Investors got a fresh update Tuesday: Rolls-Royce landed 64 million euros in funding from the EU’s Clean Aviation programme, earmarked for developing its UltraFan 30 test engine. The company is aiming for ground tests by 2028, eyeing eventual use in single-aisle jets. “An important step” toward narrowbody applications, said Alan Newby, director of research and technology. Rolls-Royce
That follows a much larger overhaul announced back on Feb. 26. Rolls-Royce posted 2025 underlying operating profit at 3.46 billion pounds—its go-to metric, stripping out certain one-offs—and said free cash flow hit 3.27 billion pounds. Looking ahead, the group now expects underlying operating profit for 2026 to land between 4.0 billion and 4.2 billion pounds. On top of that, a buyback program is in the works: 7 billion to 9 billion pounds targeted for 2026-2028, with 2.5 billion pounds scheduled for this year. Chief Executive Tufan Erginbilgic described the ongoing transformation as moving “with pace and intensity.” Rolls-Royce
The package pushed shares to all-time highs last month. Reuters noted then that Rolls-Royce’s fresh mid-term margin goal narrows the gap with GE Aerospace, its chief competitor in widebody engines. Interactive Investor’s Richard Hunter described the figures as “sparkling,” adding that the group’s “unfulfilled ambitions” remain. Reuters
But those quick wins could be fading. Analysts at Hargreaves Lansdown flagged that certain newer Rolls-Royce engines still demand more upkeep than buyers prefer. Supply-chain hiccups, not to mention possible fallout from tariffs, could also threaten margins if execution falters. The firm noted, too, that the shares are now trading at a premium valuation after their strong rally.
The wider market weighed heavily. Rolls-Royce tumbled 5.22% to 11.90 pounds Thursday, while the FTSE 100 shed 2.35%. Even top London names aren’t immune when investors brace for an extended oil shock and the prospect of higher rates.
