London, Jan 16, 2026, 07:54 GMT — Premarket
- Rolls-Royce revealed additional share repurchases as part of its £200 million interim buyback programme
- The stock finished Thursday at 1,273 pence, slightly below its peak from earlier this week
- Investors eye the full-year results due Feb. 26 for clues on capital returns and future direction
Rolls-Royce shares looked poised for a near-flat start on Friday after the British aerospace and defence firm announced a fresh batch of share buybacks as part of its interim repurchase plan. (London South East)
The buyback stands out because it’s one of the rare consistent signals from the company while the stock hovers near record highs. Traders are eager to figure out just how much extra cash Rolls-Royce intends to return to shareholders in 2026, beyond the existing programme.
Investors have been willing to pay a premium for engine makers, betting that servicing and spare-parts demand will hold firm even as aircraft deliveries rise. But that confidence could quickly falter if upcoming earnings fall short.
Rolls-Royce slipped 0.16% to 1,273.00 pence, roughly £12.73, on Thursday. The shares fluctuated between 1,261.00 and 1,299.75 pence during the session, per Yahoo Finance.
The stock reached 1,306.50 pence on Wednesday but then retreated, dropping 2.3% that day. (Investing)
Rolls-Royce disclosed in a regulatory filing early Friday that it repurchased 460,628 ordinary shares on Thursday via UBS, using multiple trading venues. The shares were bought at prices ranging from 1,264.0 pence to 1,286.5 pence each. The company confirmed plans to cancel these shares. (London South East)
Just the day before, a separate filing revealed the company bought back 592,400 shares on Wednesday, shelling out up to 1,306.0 pence per share. (London South East)
Announced back in December, the £200 million interim buyback programme is set to run until at least February 24. Rolls-Royce added that its board will revisit the overall buyback amount planned for 2026 and aims to provide an update to investors with the full-year results. (Rolls-Royce)
A Reuters Breakingviews column this week highlighted a hefty aircraft order backlog and an ageing fleet as key drivers behind strong demand for engine maintenance and parts—the more lucrative “aftermarket” segment. It named GE Aerospace, Safran, MTU, and Rolls-Royce as the main companies poised to benefit. (Reuters)
There is, however, a noticeable risk. Should Airbus and Boeing speed up deliveries and airlines retire older planes sooner, the boost from maintenance could vanish. With valuations already high, any slip in cash flow, margins, or buyback activity would be harder to absorb.
Investors are focused on Feb. 26, the day Rolls-Royce will release its full-year 2025 results. (Rolls-Royce)
