Rolls-Royce Holdings plc (LSE: RR.) has issued a trading update on 12 November 2026 confirming strong operational and financial progress in the second half of the year. The company is reaffirming full-year guidance of £4.7bn–£4.9bn underlying operating profit and £3.8bn–£4.0bn free cash flow. Alongside the update, Rolls-Royce announced an interim share buyback of £1.5bn, to be completed by its Full Year results on 25 February 2027, as part of its broader £7bn–£9bn buyback programme running from 2026 to 2028. Investors will note that the company also signalled it will revisit its mid-term targets at the February results.

Key Points

  • Rolls-Royce Holdings plc (LSE: RR.)
  • An interim share buyback of £1.5bn announced, accelerating phasing within the existing £7bn–£9bn programme
  • Full-year 2026 guidance maintained: £4.7bn–£4.9bn underlying operating profit and £3.8bn–£4.0bn free cash flow; mid-term targets to be revisited at February 2027 Full Year results
  • Investors should watch for the Full Year results on 25 February 2027 and the anticipated announcement of updated mid-term financial targets

Civil Aerospace Order Backlog Grows to Around 2,500 Engines as Flying Hours Reach 114% of 2019 Levels

Rolls-Royce reported that its Civil Aerospace large engine order backlog has grown to approximately 2,500 engines, with notable second-half orders including 70 Trent 7000 engines for Avolon, 22 Trent 7000 engines for the Cathay Group, 15 Trent XWB-84 engines for Air China, and 18 Trent XWB-97 engines for Philippine Airlines. Large engine flying hours grew 4% year on year in the first ten months of 2026, reaching 114% of 2019 levels. The company expects full-year flying hours to come in towards the lower end of its 115%–120% guidance range. The announcement also notes that effective elimination of aircraft-on-ground events has supported flying hour growth.

Power Systems Order Backlog Hits Record £8.6bn as Data Centre Demand Drives Near-Tripling of Gas Engine Orders

Rolls-Royce's Power Systems division reported a record order backlog of £8.6bn at the end of September 2026, up from £8.0bn at the half year, with order intake in the first nine months increasing 62% year on year. Orders for gas engines nearly tripled year on year, driven by prime power demand from data centres. The company stated it is finalising a significant multi-year contract to supply backup engines to a hyperscaler, alongside a framework agreement extending to 2031. Power Systems targets annual original equipment revenue growth of 25% in power generation and 20% in governmental through to 2030, underpinned by its growing backlog.

Rolls-Royce SMR Expands Czech Republic Partnership to Three Sites and Launches £1.4bn UK Supplier Programme

Rolls-Royce SMR, which the announcement describes as the only small modular reactor company with multiple contractual commitments in Europe, expanded its partnership with ČEZ in the Czech Republic to three sites in July, supporting plans for up to 3GW of capacity from six SMRs. In September, Rolls-Royce SMR launched a supplier programme offering UK businesses the opportunity to bid for £1.4bn of contracts over the coming year and confirmed that key steam turbine components, supplied by Siemens Energy, will be manufactured in the UK. The site for the first UK factory is expected to be announced in the coming months, with programmes also active in Sweden.

S&P Upgrades Rolls-Royce to 'A-' as £1.5bn Interim Buyback Accelerates Return of Capital to Shareholders

S&P Global upgraded Rolls-Royce to an 'A-' credit rating with a stable outlook in September 2026, reflecting the company's strengthened balance sheet following its multi-year transformation programme. The company has now substantially completed its previously announced £2.5bn share buyback for 2026. The newly announced £1.5bn interim buyback, to be completed ahead of the 25 February 2027 Full Year results, represents an acceleration in the phasing of the broader £7bn–£9bn programme. Chief Executive Tufan Erginbilgic attributed the accelerated return to continued confidence in sustainable free cash flow growth and what the company describes as significant value creation ahead.