Rolls-Royce announces buyback of up to £9bn as profits jump 40%

MEVVictimAlliance · 2026-02-26T08:24:45+00:00

Rolls-Royce has increased profit forecasts and announced a share buyback of up to £9bn, driven by rising air travel and restructuring efforts. Projected operating profits and free cash flow targets have also been raised, reflecting strong demand for engines.

MEVVictimAlliance

2026-02-26 08:24:45

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Rolls-Royce has raised its profit targets and announced a share buyback of up to £9bn over the next three years, as the UK aerospace engineer continues to benefit from rising air travel and a sweeping restructuring.

The FTSE 100 group told investors on Thursday that it had upgraded its midterm targets for underlying operating profit to £4.9bn-£5.2bn, up from £3.6bn-£3.9bn previously, and free cash flow to £5bn-£5.3bn from £4.2bn-£4.5bn.

Rolls-Royce said annual profits in 2025 jumped 40 per cent to a record £3.46bn on sales of just over £20bn. Free cash flow came in at £3.3bn.

The company also announced a £7bn to £9bn share buyback across 2026-28, with £2.5bn to be completed this year.

Strong demand for its commercial aircraft engines, coupled with a sweeping restructuring under chief executive Tufan Erginbilgiç, has turbocharged the company’s shares over the past three years.

They have more than doubled over the past year, closing at £13.12 on Wednesday and valuing Rolls-Royce at £110.6bn.

This is a developing story.

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