Rolls-Royce announces £1.5bn buyback, reaffirms 2026 guidance

Rolls-Royce announced an interim £1.5 billion share buyback, to be completed by February 25, 2027, within its existing £7 billion–£9 billion program for 2026–28. The company reaffirmed its 2026 outlook for underlying operating profit of £4.7 billion–£4.9 billion and free cash flow of £3.8 billion–£4.0 billion, citing continued operational and financial progress. Its civil aerospace large-engine backlog has grown to about 2,500 engines, while flying hours rose 4% year over year in the first 10 months of 2026 to 114% of 2019 levels; the company expects the full-year figure toward the lower end of its 115%–120% forecast range. Power Systems is also seeing strong demand, including for gas engines used in power generation, and Rolls-Royce said it is finalizing a multi-year backup-engine contract with a hyperscaler. The company plans to revisit its mid-term targets at its full-year results in February 2027.