London, January 25, 2026, 07:50 GMT — Market closed
- Rolls-Royce shares closed Friday up 0.7%, holding close to recent peak levels
- Company revealed another round of buybacks, maintaining steady support beneath the shares
- Attention shifts to full-year results due late February and any clues on cash returns for 2026
Rolls-Royce shares closed Friday 0.72% higher at 1,253 pence, pushing the engine maker’s choppy January streak near its recent high. Volume remained elevated. (Hargreaves Lansdown)
This is significant as the stock has regained its status as a heavyweight momentum player in London, with investors focusing more on cash returns and short-term execution. The key upcoming event is the full-year results, where the company will report on profit, cash flow, and its plans for shareholder payouts.
The buyback is quietly chipping away, reducing the share count steadily and creating a steady daily bid. When a company buys back its own shares, it usually cancels them, which can boost earnings per share if profits remain steady.
Rolls-Royce revealed on Friday that it repurchased 654,125 shares on Jan. 22 through multiple venues, with prices ranging from 1,239.5 pence to 1,278 pence per share. The company said it has bought back roughly 7.29 million shares in total since the share buyback programme started. (Lse)
The purchases fall under a £200 million interim buyback programme set to continue into late February, just before results are released. Rolls-Royce noted that the scale of any additional buybacks for 2026 will depend on board decisions and will likely be revealed with the full-year results. (Rolls Royce)
The broader market took a cautious stance heading into the weekend, with London’s blue-chip index finishing almost flat. Dan Coatsworth of AJ Bell called Friday “a calmer end to a chaotic week on the markets,” noting investors were split between safe havens and riskier assets. (Halifax)
Rolls-Royce’s shares have become more vulnerable to changes in risk appetite due to this mix. With the stock’s valuation having surged, any letdown in margins, cash conversion, or trends in engine delivery and servicing tends to hit harder when expectations run high.
The company highlighted strides in its multi-year turnaround, noting better engine durability and a boost in maintenance profitability, while also raising its guidance in previous updates. (Reuters)
Rolls-Royce’s next major event hits on Feb. 26, with its full-year 2025 results. Investors will zero in on the outlook for cash generation in 2026 and whether the company plans to boost shareholder returns once the interim buyback wraps up. (Rolls Royce)
