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Rolls-Royce Set to Announce £1.5 Billion Share Buyback with Annual Earnings

Rolls-Royce Set to Announce £1.5 Billion Share Buyback with Annual Earnings.

Rolls-Royce Holdings PLC (LON: RR) is reportedly preparing to unveil a new share buyback program worth up to £1.5 billion ($2 billion) alongside its upcoming annual earnings report, according to Sky News. The announcement is expected to coincide with the company’s full-year results scheduled for release on February 26, drawing significant attention from investors tracking UK stocks and the aerospace sector.

The anticipated buyback follows a £1 billion share repurchase announced last year, signaling continued confidence in the company’s financial recovery and long-term growth strategy. Rolls-Royce, a leading aircraft engine manufacturer, has demonstrated a strong turnaround after facing severe challenges during the COVID-19 pandemic, which heavily impacted its civil aerospace operations. As global air travel rebounded and demand from commercial airplane manufacturers improved, the company benefited from increased engine orders and servicing activity.

Previously, Rolls-Royce upgraded its annual guidance, projecting stronger profits and improved free cash flow driven by robust performance in its commercial aerospace division. The company is expected to report annual underlying operating profit in the range of £3.1 billion to £3.2 billion, reflecting sustained operational momentum and cost-efficiency measures implemented in recent years.

The potential £1.5 billion buyback underscores management’s commitment to returning capital to shareholders while maintaining financial discipline. Share buyback programs typically enhance shareholder value by reducing the number of shares outstanding and boosting earnings per share, which can support stock price performance.

Investors will closely watch the February 26 earnings release for confirmation of the buyback plan, updated financial guidance, and insights into Rolls-Royce’s outlook for 2026. With improving demand in the global aviation industry and strengthened cash flow generation, Rolls-Royce appears well-positioned to continue its recovery and deliver long-term value to shareholders.

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