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Rolls-Royce announces £1.5 billion buyback as engine demand grows - Finance news and analysis from Global Banking & Finance Review
Finance

Rolls-Royce announces £1.5 billion buyback as engine demand grows

Published by Global Banking & Finance Review

Posted on November 12, 2026

1 min read

· Last updated: November 12, 2026

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Rolls-Royce Announces £1.5 Billion Buyback, Order Backlog Hits 2,500 Engines

Rolls-Royce Reports Strong Demand and Financial Performance

LONDON, Nov 12 (Reuters) - Rolls-Royce said on Thursday its large engine order backlog had grown to around 2,500 engines as it reported strong demand across its civil aerospace and defence businesses and reaffirmed its full-year guidance.

Financial Highlights

Full-Year Guidance and Profit Expectations

• Rolls-Royce said its performance gave it further confidence in its full-year guidance for underlying operating profit of £4.7 billion-£4.9 billion and free cash flow of £3.8 billion-£4.0 billion

Share Buyback Announcement

• It announced an interim share buyback of £1.5 billion

Business Developments

Major Contracts and Agreements

• It was in the process of finalising a significant multi-year contract to supply backup engines to a hyperscaler, alongside a framework agreement extending to 2031

Engine Flying Hours and Growth Metrics

Large Engine Flying Hours (EFH)

• Large engine flying hours (EFH) grew 4% year on year in the first 10 months of 2026, reaching 114% of 2019 levels

Power Systems Performance

• In Power Systems, it continued to see strong order and revenue growth

(Reporting by Paul Sandle; editing by Sarah Young)

Key Takeaways

  • Large‑engine order backlog surged to around 2,500 engines, underlining resilient demand across civil aerospace and defence sectors (Reuters Nov 12, 2026).
  • Management reaffirmed full‑year guidance: underlying operating profit £4.7–4.9 billion and free cash flow £3.8–4.0 billion, supported by improved aftermarket performance and LTSA margins.
  • An interim share buyback of £1.5 billion was announced, part of a broader £2.5 billion 2026 buyback programme, supporting substantial shareholder returns (£7–9 billion planned through 2028).

Frequently Asked Questions

What is the value of Rolls-Royce's latest share buyback?
Rolls-Royce has announced an interim share buyback valued at £1.5 billion.
How many engines are in Rolls-Royce's current order backlog?
The company reported a large engine order backlog of around 2,500 engines.
What are Rolls-Royce’s profit and cash flow guidance for the year?
Rolls-Royce reaffirmed its full-year guidance for underlying operating profit of £4.7 billion-£4.9 billion and free cash flow of £3.8 billion-£4.0 billion.
How much did large engine flying hours grow in 2026?
Large engine flying hours grew 4% year on year in the first 10 months of 2026, reaching 114% of 2019 levels.
Which sectors drove growth for Rolls-Royce?
Strong demand across civil aerospace, defence businesses, and power systems drove Rolls-Royce's growth.

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