Rolls-Royce Holdings plc — the aerospace, defence and power systems group (not the BMW-owned Rolls‑Royce Motor Cars brand) — is ending 2025 with its stock still trading near the top of its 52‑week range, while investors digest a fresh capital-returns push and a steady drumbeat of operational updates across defence and power generation.
As of 23 December 2025, Rolls‑Royce shares on the London Stock Exchange (LSE: RR.) were around 1,154.5p (prices are typically delayed), giving the company a market capitalisation of roughly £95.8 billion. [1]
Below is a comprehensive, publication-ready roundup of the latest news, current forecasts, and key analyst views shaping sentiment around Rolls‑Royce stock right now — and the practical catalysts that could move RR.L into early 2026.
Rolls-Royce share price on 23 December 2025: where RR.L stands now
Rolls‑Royce shares were last shown at ~1,154.5p, essentially flat on the session (‑0.04%), with the day’s range hovering around 1,150p–1,155p. [2]
A few context points help frame why the stock feels “sticky” at these levels:
- Market cap: ~£95.78bn (per LSE data page) [3]
- Shares in issue: ~8.30bn [4]
- 52‑week range:557p to 1,195p — meaning RR.L is still trading relatively close to its recent highs [5]
- Recent closes: Investing.com’s historical table shows 1,155p on Dec 22, after a volatile mid‑December stretch. [6]
In other words: by late December standards, the stock is not acting like a sleepy industrial. It’s acting like a company the market is still actively repricing — just more cautiously than earlier in the year.
“No fresh RNS” on the day — but December has been busy
If you’re looking specifically for new regulatory headlines today, London South East’s RR. regulatory feed showed 0 new RNS items at the time of checking on 23 December. [7]
But that doesn’t mean nothing is happening. The market is still working through a set of material December announcements — especially around buybacks, defence platforms, and power generation — that can influence positioning into year‑end and into the February results window.
The headline capital-return story: a £200m interim share buyback (starting 2 January 2026)
The most directly “stock-specific” catalyst on the tape is Rolls‑Royce’s interim share buyback programme:
- Rolls‑Royce announced it will repurchase shares up to £200 million. [8]
- The programme is scheduled to run from 2 January 2026 and complete no later than 24 February 2026. [9]
- It comes after completion of a £1 billion buyback programme in November 2025. [10]
- The company expects to report full-year 2025 results on 26 February 2026, and it flagged that the total quantum of 2026 buybacks remains subject to board review and is expected to be communicated alongside those results. [11]
Mechanically, Rolls‑Royce said shares purchased under the programme will be cancelled, shrinking share capital — a structure investors often like because it can mechanically support per-share metrics over time (assuming fundamentals hold up). [12]
One nerdy-but-important detail for news watchers: the firm said repurchases under the programme will be announced by 7:30 a.m. on the next business day after a repurchase occurs (or as otherwise required). [13]
Dividends are back — and 2025 has already delivered two payments
Rolls‑Royce’s shareholder-return story in this cycle isn’t just buybacks. The company also points investors to the reintroduction of dividends:
- Rolls‑Royce notes dividends on ordinary shares were reintroduced as announced on 27 February 2025. [14]
- The company’s dividend history table lists:
- Final dividend: announced 27 Feb 2025, paid 16 Jun 2025, £0.06 per share
- Interim dividend: announced 31 Jul 2025, paid 18 Sep 2025, £0.045 per share [15]
For a stock that spent years rebuilding credibility after the pandemic-era aviation shock, the combination of dividends + buybacks has become part of the “this is a different Rolls‑Royce now” narrative investors are pricing.
Defence momentum: AE 1107 engine testing for the U.S. Army’s MV‑75 FLRAA
On the operational side, Rolls‑Royce put out a defence-focused update that matters for long-cycle revenue visibility:
Rolls‑Royce said it has begun AE 1107 engine testing to support prototype delivery for the U.S. Army’s MV‑75 Future Long Range Assault Aircraft (FLRAA) programme. [16]
The company describes FLRAA as a top modernisation priority and says each MV‑75 FLRAA will be equipped with two Rolls‑Royce AE 1107F engines, highlighting features such as power density, cyber-compliant controls, and survivability technology. [17]
Why equity investors care: defence platforms tend to be less “quarter-to-quarter moody” than civil aerospace deliveries. Programmes like this can create long-duration revenue through production and — crucially — aftermarket/service support.
Power Systems: green shipping corridor and data-centre demand show up in new releases
Rolls‑Royce’s non-aerospace businesses don’t always get the same headlines, but December’s press releases are a reminder that Power Systems is very much part of the investment case — especially where electrification and critical infrastructure are concerned.
Electric ferries: eight mtu generators for Baleària, service planned from 2027
Rolls‑Royce said its Power Systems division is supplying eight mtu emergency power generators for two fully electric fast ferries for Spanish shipping company Baleària. [18]
The company said that from 2027 the ships are intended to cover the 18 nautical miles between Tarifa (Spain) and Tangier (Morocco) using electric power — described as opening a first “green corridor” between Europe and Africa. [19]
Data centres: “verified environmental product declarations” for mtu emergency generators
Separately, Rolls‑Royce said it has delivered mtu emergency power generators with verified environmental product declarations (EPDs) to a European data centre operator for the first time. [20]
The company frames this as a move toward more transparency on environmental footprint, noting that the life-cycle accounting runs from raw material extraction to end of life, and adding that mtu gensets can be operated with sustainable fuels — with CO₂ reductions claimed up to 90% (depending on fuel and assumptions). [21]
The broader market read-through: data centres remain a structural demand story, and “how clean is your backup power?” is becoming a procurement question rather than an optional marketing slide.
Macro and market mood: defence stocks have swung with rates and geopolitics
Rolls‑Royce is a single stock — but it trades inside a loud ecosystem: rates, defence sentiment, airline demand, sterling moves, and risk appetite.
Two Reuters market reports in mid‑December capture that push‑pull:
- On 18 December, Reuters reported that UK stocks rose after the Bank of England cut rates to 3.75%, with aerospace and defence stocks leading gains — and Rolls‑Royce jumping 3.8% on the day. [22]
- Two days earlier, on 16 December, Reuters described the FTSE 100 ending lower with defence stocks under pressure amid discussion of a potential Russia‑Ukraine peace deal and related sentiment effects. [23]
That matters for anyone watching RR.L into 2026: even when company-specific news is quiet, the stock can move sharply with sector rotations.
Analyst forecasts on 23 December 2025: “Buy” consensus, ~1,216p average target
For the most widely-circulated “forecast” lens — analyst price targets — Investing.com’s consensus page currently frames Rolls‑Royce as a Buy:
- Consensus: Buy
- Analyst split (past 3 months on the page):13 Buy, 5 Hold, 0 Sell [24]
- Average 12‑month price target:~1,215.89p (about +5% upside from the reference price shown) [25]
- High / low targets shown:1,615p high, 790p low [26]
The same page also lists examples of broker stances and target levels (as displayed there), including JPMorgan (Buy), RBC Capital (Buy, new coverage), Morgan Stanley (Buy), UBS (Buy) and Berenberg (Hold), with action dates spanning September through December 2025. [27]
Two big takeaways from those numbers:
- The market is not pricing Rolls‑Royce as a contrarian “turnaround lottery ticket” anymore; it’s pricing it as a widely-owned name with broadly positive coverage.
- Upside from the average target is now relatively modest, which often shifts investor debate from “is this fix real?” to “how much perfection is already priced in?”
What the business actually is: four segments, multiple cycles
If you only know Rolls‑Royce as “jet engines,” you’re missing why the stock can sometimes trade like a bundle of different businesses stapled together.
Reuters’ company description breaks Rolls‑Royce into four segments: Civil Aerospace, Defense, Power Systems, and New Markets (including small modular reactors and new electrical power solutions). [28]
That segmentation matters because each one has a different rhythm:
- Civil Aerospace tends to be tied to widebody flight activity and long-term service agreements.
- Defense is shaped by government budgets and programme timelines.
- Power Systems leans into industrial and infrastructure demand (including data centres and marine).
- New Markets is longer-dated, more optionality-driven — and typically more controversial in valuation discussions.
The bull case vs. the bear case: what investors are really arguing about
Here’s the core debate RR.L investors are having at the end of 2025, translated into plain English.
The bull case (why investors stay long)
- Capital returns are real and scheduled: a defined £200m buyback is queued up, with the board set to discuss broader 2026 returns at results. [29]
- Defence pipeline looks durable: testing for FLRAA engines is one example of the kinds of long-cycle programmes investors like to see. [30]
- Non-aerospace demand isn’t hypothetical: power systems activity tied to data centres and electrification is showing up in concrete deliveries. [31]
- Analyst sentiment remains supportive: consensus targets still lean upward, even after a huge rerating. [32]
The bear case (why some investors hesitate here)
- Valuation risk after a massive run: when a stock is near its 52‑week highs, even “good news” can become “not good enough.”
- Macro whiplash: defence names and industrials can swing fast on rate moves, geopolitics, and sterling strength. [33]
- Execution remains non-negotiable: buybacks help, but they don’t replace the need for continued delivery across complex, safety-critical engineering programmes.
Neither side is crazy. This is what a late-stage rerating argument looks like: not “will they survive?” but “how much excellence is already priced in?”
What to watch next: the dates and signals that can move RR.L in early 2026
If you’re tracking Rolls‑Royce stock into the new year, these are the practical “calendar catalysts” visible right now:
- 2 January 2026: planned start of the £200m interim buyback [34]
- No later than 24 February 2026: expected completion deadline for that programme [35]
- 26 February 2026: expected FY25 results date and likely moment for the company to communicate any broader 2026 capital return plans [36]
In the meantime, investors will keep scanning for:
- Additional defence programme updates
- Any changes in buyback pace (via required announcements)
- Evidence that Power Systems demand (especially data centres) remains resilient
Bottom line on 23 December 2025
Rolls‑Royce (RR.L) is closing 2025 as a very different equity than it was earlier in the decade: dividends have returned, buybacks are ongoing and scheduled, analysts broadly maintain a Buy stance, and the company is pushing out tangible updates across defence and power infrastructure. [37]
At around 1,155p, the stock is trading close to its recent highs — which means the next leg will likely depend less on “the story” and more on delivery at the February results, plus whatever management signals about 2026 capital returns and medium-term performance. [38]
References
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