London, Jan 26, 2026, 07:47 GMT — Premarket
- Rolls-Royce shares edged up slightly in London on Friday as the stock entered the new week.
- Near-term focus centers on buyback mechanics and the upcoming results date.
- Fresh warnings from Airbus have thrust aviation supply-chain issues back into the spotlight.
Shares of Rolls-Royce Holdings plc (RR.L) closed Friday 0.7% higher at 1,253 pence, having fluctuated between 1,246p and 1,262.5p during the session. Trading volume reached 37.1 million shares. (Investing)
The FTSE 100 engineering firm has surged around 105% in the last year, currently trading about 4% shy of its 52-week peak at 1,306.5p. According to Hargreaves Lansdown, the company’s market capitalization stands near £103 billion, with a trailing P/E ratio close to 62. (Hargreaves Lansdown)
That puts the stock vulnerable to minor changes in sentiment. Trading close to record highs, investors begin hunting for excuses to hold back.
Rolls-Royce announced in December an interim share buyback program of up to £200 million, starting Jan. 2 and set to conclude by Feb. 24 at the latest. The company plans to cancel all shares repurchased under this scheme. (Rolls-Royce)
Rolls-Royce is set to release its full-year 2025 results on Feb. 26. (Rolls-Royce)
The aviation sector showed fresh signs of strain after Airbus CEO Guillaume Faury flagged “significant” logistical and financial harm caused by trade tensions last year. In a memo obtained by Reuters, he pointed to Airbus’s “most serious difficulties” still lying with Pratt & Whitney and CFM engines, underscoring ongoing supply chain bottlenecks in the industry. (Reuters)
Rolls-Royce rides that cycle, with its civil aerospace division relying heavily on long-term service contracts once engines are in operation — generating “aftermarket” income through maintenance and parts. LSEG data also highlight its defence, power systems, and a “new markets” segment, which covers small modular reactors. (Reuters)
Traders will be eyeing the early action in UK industrials before the open, keeping a close watch on whether the buyback remains a reliable support when the stock dips. Lately, the shares have reacted swiftly to sector news.
The rally has tightened the margin for error on cash flow and any hint that aircraft delivery delays are returning to disrupt engine utilisation. Should February’s shareholder return package fall short of expectations, the downside risk will emerge quickly.
