London, Feb 23, 2026, 07:53 (GMT) — Premarket
- Rolls-Royce ended Friday at 1,336 pence, adding 0.9%.
- According to Sky News, the group could unveil a new buyback as large as £1.5 billion alongside its results this week.
- Rolls-Royce wants the UK government to help fund a £3 billion engine development push, according to The Financial Times.
Rolls-Royce (RR.L) drew attention before Monday’s session as reports surfaced suggesting the jet-engine group may announce a share buyback of as much as 1.5 billion pounds ($2 billion) with its annual results later this week. The shares ended Friday at 1,336 pence, a 0.9% rise. (Reuters)
Why it matters now: Rolls-Royce is set to announce full-year results on Thursday. For investors, capital returns remain a crucial measure of whether the group’s post-pandemic cash recovery can hold up. (rolls-royce.com)
Any fresh buyback sends a clear message about just how much “excess” cash the board is ready to return, instead of using it for investment. In a buyback, the company pulls its own stock off the market, cutting the number of shares outstanding—so, if profits stay steady, earnings per share go up.
According to Sky News, Rolls-Royce is set to unveil a fresh programme capped at £1.5 billion. Reuters wasn’t able to confirm the report right away, and a company spokesperson declined to respond. (Reuters)
Last year, Rolls-Royce rolled out a 1 billion pound buyback just as it posted results, Reuters reported. For 2026, the company says any buyback amount will depend on a board review. That number should come out with the FY25 results. (Reuters)
The Financial Times is reporting that Rolls-Royce wants the UK government to back its new aircraft engine program with taxpayer funding totaling 3 billion pounds, according to people with knowledge of the situation. Reuters hasn’t been able to confirm the details of that story. (Reuters)
Rolls-Royce is looking to raise between 100 million and 200 million pounds to fund development and testing of a demonstrator for its UltraFan 30 engine, the FT reported. The move marks a push to get back into the short-haul market, which the company left over ten years ago. (Financial Times)
Capital allocation is once again in the spotlight. Shareholders are pressing for payouts, yet the company is simultaneously seeking public backing for its next engine cycle. It’s a straightforward clash—immediate returns versus reinvestment for future expansion.
That engine funding bid is entering an already packed arena. According to the FT, rivals like Airbus and Safran are also chasing government support, with Europe aiming to anchor future aviation development on home turf. (Financial Times)
But here’s the snag: the buyback report hasn’t been confirmed, and the subsidy request may hit a wall politically—particularly if officials call for job guarantees, matching private capital, or step up requirements. If the buyback shrinks, or just doesn’t materialize, that would unsettle a market betting hard on robust cash conversion.
Thursday brings full-year numbers, and traders are zeroed in on free cash flow—basically, how much money’s left once the company covers the essentials. Any tweaks to guidance will get attention, too. Also in focus: will executives tie shareholder payouts to milestones on major projects like UltraFan? (rolls-royce.com)
Feb. 26 brings results and a webcast—the next obvious catalyst—then early-March investor roadshows, both already marked on the company’s calendar. (rolls-royce.com)
