Rolls‑Royce Holdings plc Stock (RR.L): Share Price, Buyback News, Analyst Forecasts and 2026 Outlook as of 26 December 2025

Rolls‑Royce Holdings plc (LSE: RR., ADR: RYCEY) is ending 2025 in a rare position for a once-embattled industrial giant: it’s become one of the FTSE 100’s defining comeback stories, helped by a potent mix of higher widebody engine flying hours, improving engine durability, booming demand for backup power in data centres, and a renewed commitment to returning cash to shareholders. ^[1]

As of Friday, 26 December 2025, markets in the UK are effectively in holiday mode (and the London Stock Exchange is closed for Boxing Day). But investor attention hasn’t gone on vacation: year-end “winners and losers” roundups, buyback details, and fresh analyst target ranges are shaping expectations for 2026—with the next major milestone being Rolls‑Royce’s full‑year 2025 results on 26 February 2026. ^[2]

Rolls‑Royce share price on 26 December 2025

Because UK markets are closed on 26 December, most “today” quotes reflect the latest available close. Data services tracking RR. show the stock around 1,149.5p (£11.495) with no trading volume logged for the holiday session, consistent with a closed market day. ^[3]

A few context points investors are using to frame that price level:

Rolls‑Royce’s 52‑week range has stretched from the mid‑500p area to just under 1,200p, underscoring how aggressive the 2025 re‑rating has been. ^[4]
The stock was cited among 2025’s strongest FTSE 100 performers, with the Financial Times highlighting Rolls‑Royce’s ~95% rise this year amid strong demand across engines and power systems. ^[5]

Why Rolls‑Royce stock surged in 2025: the three-engine thesis

Investors tend to talk about Rolls‑Royce in three big “engines” (not all of them literally engines):

Civil Aerospace (widebody engines + long-term service agreements)
Power Systems (mtu generators and related equipment—especially for data centres and grid constraints)
Defence (from combat air to land and naval applications)

Rolls‑Royce’s November trading update captured the same idea in corporate language: strong performance across the group while acknowledging persistent supply-chain challenges. ^[6]

1) Civil Aerospace: flying hours are back—and then some

In its trading update to 31 October 2025, Rolls‑Royce said large engine flying hours over the first 10 months of 2025 rose 8% year-on-year to 109% of 2019 levels. That matters because widebody engine aftermarket economics are often tied to utilization: more flying hours generally means more service revenue and cash generation. ^[7]

The same update pointed to ongoing widebody demand and named large engine orders from customers including IndiGo, Malaysia Airlines and Avolon, plus growing interest in the Trent XWB‑97-powered Airbus A350F. ^[8]

2) Power Systems: data centres are a structural demand driver

Rolls‑Royce explicitly called out “continued strong order intake and revenue growth” in Power Systems, led by power generation driven by data centres and governmental demand. ^[9]

Two product/market developments have been part of that story in 2025:

Fast-start gas gensets for data centres and grid stability. Rolls‑Royce announced expansion of its mtu gas genset portfolio, including a new 45‑second fast-start 60 Hz solution (targeting North America) planned from 2026, positioning it for both emergency power and “prime power” use cases where grid connection is delayed. ^[10]
Environmental transparency for critical infrastructure. Rolls‑Royce said it delivered mtu emergency power generators with verified Environmental Product Declarations (EPDs) to a European data centre operator “for the first time,” framing it as a step toward greater sustainability transparency demanded by customers. ^[11]

The company’s own commentary is also looking beyond the next quarter: it described development/testing of a next-generation engine targeting the data-centre backup market, expected to enter service in 2028. ^[12]

3) Defence: orders and geopolitical gravity

Defence has been another leg of investor confidence—both because of rising European defence budgets and because Rolls‑Royce sits in multiple defence niches.

A tangible example from December: Rolls‑Royce disclosed a major order from defence company KNDS for more than 300 mtu MB 873 engines to power new Leopard 2 battle tanks, with deliveries planned for 2026, linked to orders by several European countries. ^[13]

In its November trading update, Rolls‑Royce also referenced robust defence demand and pointed to developments including GCAP progress and the Türkiye/UK agreement to export Eurofighter Typhoon aircraft powered by EJ200 engines. ^[14]

The buyback story: £1 billion completed, £200 million more queued for early 2026

For equity investors, one of the most “price-sensitive” headlines at year-end has been capital returns.

Rolls‑Royce disclosed that after completing a £1 billion buyback programme for 2025 (completed in November 2025), it plans to begin an interim, irrevocable, non-discretionary buyback of up to £200 million. The programme is scheduled to:

Start: 2 January 2026
End: no later than 24 February 2026
Purpose: shares purchased are expected to be cancelled (reducing share capital)
Operator: executed via a non-discretionary arrangement with UBS AG London Branch
Context: ahead of full-year results expected on 26 February 2026 ^[15]

Crucially, Rolls‑Royce also said the total buyback quantum for 2026 remains subject to board review and is expected to be communicated alongside the FY25 results—keeping the door open to larger capital return plans if cash generation remains strong. ^[16]

Guidance and financial momentum: what the company has actually said

Rolls‑Royce’s 2025 rally hasn’t been built purely on vibes. The company has repeatedly emphasized profit and cash-flow delivery.

FY25 guidance (as reiterated in November)

In its trading update, Rolls‑Royce reiterated full-year 2025 guidance for:

Underlying operating profit:£3.1bn to £3.2bn
Free cash flow:£3.0bn to £3.1bn

It explicitly paired that guidance confidence with a reminder that supply-chain challenges remain. ^[17]

Half-year results: higher profit, higher cash flow, raised expectations

In its 2025 half-year results, Rolls‑Royce reported strong first-half performance and stated that it had raised its full-year guidance to the ranges above. It also reiterated mid-term targets—an important anchor for “what’s next” debates. ^[18]

Reuters coverage of those mid-year results highlighted how the upgraded profit outlook pushed the shares to fresh highs at the time, reinforcing the market’s sensitivity to guidance changes. ^[19]

Engine durability: the unsexy lever that moves the model

If you want a single operational variable that can quietly reshape Rolls‑Royce’s economics, it’s often Time on Wing (how long an engine stays in service before it needs major maintenance).

Rolls‑Royce has been pushing durability upgrades across the Trent family, and it has framed these improvements as integral to its mid-term targets.

In June 2025, the company referenced certification of an upgraded Trent 1000 high-pressure turbine blade (in later commentary) as part of improving time on wing. ^[20]
In a separate June press release, Rolls‑Royce announced a Durability Enhancement Package aiming to double Trent 1000 Time‑on‑Wing, with distribution to maintenance facilities globally and plans to retrofit in-service engines—while also describing a second phase intended to deliver further improvement from early 2026. ^[21]

For investors, this matters because durability affects airline satisfaction, shop visit timing, warranty/compensation risk, and the profitability of long-term service agreements.

Analyst forecasts on 26 December 2025: modest upside on average, wide disagreement underneath

By late December, consensus targets for Rolls‑Royce cluster only somewhat above the current price, but the spread between bullish and bearish views is large.

Two widely followed market aggregators illustrate that dispersion:

TradingView’s analyst target summary lists an average target around 1,266p, with estimates spanning roughly 900p to 1,615p. ^[22]
Investing.com’s consensus estimates show a similar setup: an average target around the low 1,200s pence, with the high end also around 1,615p and the low end materially below current levels. ^[23]

Using the ~1,149.5p year-end price level, those averages imply something like mid‑single‑digit to low‑double‑digit upside on “base case” targets—while the bear case targets imply meaningful downside if execution stumbles or valuation compresses. ^[24]

The valuation argument: the stock has re-rated—so 2026 may be about “proving it again”

After a year in which the share price roughly doubled, the key 2026 debate is less “can Rolls‑Royce survive?” and more “how much perfection is already priced in?”

The bull case says the premium is earned:

Widebody utilization is strong (flying hours above 2019). ^[25]
Buybacks signal confidence in sustained cash generation. ^[26]
Data-centre power is becoming a structural demand category, not a cyclical blip. ^[27]
Defence demand is elevated in Europe, with new orders like Leopard 2 powertrains adding visibility. ^[28]

The bear case is basically the mirror image:

If the market has priced Rolls‑Royce like a “high-quality compounder,” any miss (supply chain, shop-visit intensity, durability delays, programme costs) can trigger a sharp de-rating. ^[29]
Data-centre infrastructure spending is powerful—but not immune to pauses, permitting constraints, grid bottlenecks, or a shift in how hyperscalers architect resiliency. ^[30]

Corporate governance and “small” updates investors still watch

Even when there’s no blockbuster announcement on a holiday week, markets still digest smaller regulatory disclosures.

On 23 December 2025, Rolls‑Royce released a Director/PDMR notification describing share vesting and sales to cover statutory withholding liabilities under its incentive plan, including transactions involving CEO Tufan Erginbilgiç and CFO Helen McCabe. These filings are typically treated as governance transparency rather than fundamental signals, but they are part of the year-end information flow. ^[31]

Separately, a December capital/voting rights update detailed the company’s issued share capital and total voting rights figures—useful for investors tracking dilution, buyback impact, and per-share math over time. ^[32]

What to watch next: the short list of 2026 catalysts

Here are the dates and developments that could matter most for RR.L over the next two months:

2 January 2026: Interim £200m buyback programme begins. ^[33]
By 24 February 2026: Programme expected to complete no later than this date. ^[34]
26 February 2026: Full-year 2025 results; market likely focused on (1) whether FY25 guidance was met, (2) 2026 cash outlook, and (3) the board’s decision on total 2026 buybacks. ^[35]
2026 deliveries and execution milestones: Leopard 2 engine deliveries planned for 2026, plus continued rollout of durability upgrades and data-centre product roadmap. ^[36]

Bottom line for investors reading Rolls‑Royce stock on 26 December 2025

Rolls‑Royce enters 2026 with undeniable momentum: a blockbuster 2025 share-price run, official guidance pointing to strong profit and free cash flow, and a buyback pipeline that extends into early 2026. ^[37]

But the market’s expectations have grown up too. With the stock priced near recent highs and analysts split across a wide range of target outcomes, the next leg likely depends on whether the February results confirm that 2025 wasn’t a one-off rebound—but the early phase of a durable, cash-generative industrial machine. ^[38]

References

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Shell Plc Stock (SHEL) News on Dec. 26, 2025: Buybacks, Gulf Discoveries, and Analyst Forecasts Into 2026

Unilever PLC Stock (UL, ULVR) Outlook on Dec. 26, 2025: Magnum Spin-Off Aftermath, Analyst Targets, and What Comes Next