LONDON, Feb 6, 2026, 08:56 GMT — Regular session
- Rolls-Royce shares slipped slightly Friday morning but remained close to their January record peak
- China Airlines inked TotalCare service deals covering 36 Trent XWB engines
- Investors are focused on Boeing’s push to upgrade 787 engines and its ongoing share buybacks ahead of upcoming earnings
Rolls-Royce (RR.L) shares edged lower in early London deals Friday, falling 0.7% to 1,199.5 pence by 0856 GMT. The stock remains roughly 8% below its January high. (London South East)
This shift is significant as the rally has made the stock highly reactive to minor shifts in the civil-aerospace story — factors like flying hours, maintenance expenses, and the adoption of new upgrades by airlines. It’s not just engine sales anymore; service contracts are now a key driver of cash flow.
Investors are keeping an eye on whether Rolls-Royce can regain traction in the widebody fleet market, where long-term maintenance contracts can secure steady revenue streams for years. Wins on Boeing 787 engine campaigns and A350 service deals often influence sentiment well before they appear in the official figures.
Rolls-Royce announced this week that China Airlines has signed TotalCare agreements for 36 Trent XWB engines — 30 Trent XWB-97s and six Trent XWB-84s — to power 15 Airbus A350-1000s and three A350-900s. “We’re delighted to deepen our partnership with China Airlines,” said Ewen McDonald, chief customer officer for civil aerospace. The company also highlighted recent Trent XWB-97 durability upgrades, which have boosted “time on wing” by 60%, meaning engines stay on aircraft longer before maintenance. Another upgrade phase is set for rollout in 2028. (Rolls-Royce)
At the Singapore Airshow, McDonald told The Business Times that Rolls-Royce aims to claw back market share from GE Aerospace on the 787, stating: “We are going to be very, very aggressive in the market.” The report noted the Trent 1000 XE “Phase 1” package is already in service and has “more than doubled” time on wing. A “Phase 2” upgrade expected this quarter should boost reliability by an additional 20% to 30%. (The Business Times)
Rolls-Royce revealed another batch of share buybacks on Friday. The company repurchased 458,596 shares on the London Stock Exchange on Feb. 5, alongside further purchases on other platforms, under its £200 million buyback plan. It reported paying a volume-weighted average price of roughly 1,213 pence per share on the LSE. (Investegate)
London’s wider market scene remains unsettled as investors parse the Bank of England’s recent policy cues, with changing bets on rate cuts adding to the mix. This has weighed on segments of the UK equity market, even as individual stocks move on company-specific news. (Reuters)
Still, the upside scenario carries a risk: if durability improvements don’t quickly cut down on shop visits, or if airlines grow annoyed by repair costs once more, the company could fall further behind on new widebody programs. A strong push for upgrades might also hurt margins if execution falters or supply bottlenecks worsen.
Investors have a clear date on the horizon. Rolls-Royce’s interim buyback should wrap up by Feb. 24, just before the company reports full-year 2025 results on Feb. 26. Expect updates on flying hours, costs, and cash flow to drive the next move. (Rolls-Royce)
