London, February 24, 2026, 07:50 GMT — Premarket
- Rolls-Royce wrapped up Monday at 1,333p, slipping roughly 0.2%.
- According to Sky News, the company may roll out a new share buyback program totaling as much as £1.5bn.
- Rolls-Royce is pushing for government support in the UK as it looks to get its UltraFan engine project off the ground, according to a separate report.
Rolls-Royce Holdings (RR.L) heads into Tuesday’s session with investors on alert, following a Sky News report that the jet-engine manufacturer might unveil a new share buyback of up to 1.5 billion pounds ($2 billion) as part of its annual results this week. The company wouldn’t comment on the report, and Reuters noted it was unable to confirm the information right away. Last July, Rolls-Royce bumped its upper range for underlying operating profit guidance to 3.2 billion pounds, and free cash flow hit 3.1 billion pounds—money remaining after covering operating costs and investments.
The timing is key—Rolls-Royce is still in the midst of a smaller buyback. Back in December, the company announced plans for an interim repurchase of up to 200 million pounds of shares, scheduled to run through no later than Feb. 24. The board, meanwhile, said it would set the total 2026 buyback when the full-year numbers come out.
Rolls-Royce snapped up 488,883 shares on Feb. 20, according to a regulatory filing published Monday. The volume-weighted average price landed at 1,337.1437 pence—a figure that reflects heavier trades more than smaller ones. Since kicking off the programme, the company has bought back a total of 15,971,931 shares.
Rolls-Royce shares slipped 0.22% to close at 1,333p on Monday. The FTSE 100 edged just 0.02% lower, as renewed jitters around U.S. tariffs crept in. UK aerospace and defence names, which notched a record high last Friday, lost some ground. Chief financial officer Helen McCabe last summer called buybacks “in our tool kit.” sharecast.com
The Financial Times has reported that Rolls-Royce is pressing the UK government for taxpayer backing as it looks to advance its UltraFan 30 engine, a project pegged at around 3 billion pounds. According to the report, the company wants an initial injection of 100 million to 200 million pounds to get development and demonstrator testing underway. Reuters noted it was unable to immediately confirm the report.
Rolls-Royce is pushing for clarity on government support by the first half of 2026, according to the FT. Officials are still exploring whether the Aerospace Technology Institute, the National Wealth Fund, or possibly an equity stake makes sense. The FT also pointed to tricky political choices—committing to one flagship project could risk alienating other aerospace companies with significant UK operations.
“Little sign of turbulence” at Rolls-Royce, Aarin Chiekrie of Hargreaves Lansdown remarked to City A.M., with Civil Aerospace demand standing out. Investors are watching engine flying hours, which track maintenance needs and drive revenue, and weighing if Rolls-Royce can beat its profit forecasts once more. OilPrice.com
But there’s a flipside to the buyback chatter. If the repurchase turns out smaller than investors want—or if cash generation gets squeezed as the company pours money into new programs and wrestles with supply-chain snags—the stock could get rattled. It’s a name that’s already trading like things will go smoothly.
Execution risk looms over the longer-term picture, too. Without a clear government commitment to UltraFan, investors are left uncertain—especially if the decision drags out—about the extent of Rolls-Royce’s willingness to commit major capital to development.
Rolls-Royce will release its full-year 2025 results on Feb. 26. Investors are watching for guidance on 2026 buyback amounts and the cash-flow outlook—details that could shape sentiment for RR.L in the days after.
