Rolls-Royce eyes another financial upgrade as buybacks accelerate
Strong operational performance, rising aerospace demand and AI-driven data centre growth support the group's ambitions, as a new £1.5 billion share buyback strengthens shareholder returns.
- 01Rolls-Royce may raise its medium-term targets when it publishes full-year results in February
- 02New £1.5 billion share buyback follows substantial completion of a £2.5 billion programme
- 032026 targets: underlying operating profit of £4.7-4.9 billion and free cash flow of up to £4 billion
- 04Power Systems orders rose 62% in the first nine months; aerospace large-engine backlog stands at 2,500 units
Rolls-Royce is approaching another potential milestone in its financial transformation, with the British engineering group signalling that it could raise its medium-term targets when it publishes its full-year results in February.
A turnaround under Erginbilgic
Under CEO Tufan Erginbilgic, the company has experienced a remarkable turnaround. Its shares have risen from around £1 at the time of his appointment to a record £15.70 last summer, taking its market value above £100 billion.
The group remains on track to achieve its 2026 financial objectives, targeting underlying operating profit of between £4.7 billion and £4.9 billion, alongside free cash flow of up to £4 billion.
Rolls-Royce is also expanding its shareholder returns with an additional £1.5 billion share buyback, following substantial completion of its previous £2.5 billion programme.
Growth across core businesses
Operational growth remains strong across its core businesses. The aerospace division benefits from a large-engine order backlog of 2,500 units, while engine flying hours are already 14% above pre-pandemic levels.
Meanwhile, Power Systems orders increased by 62% in the first nine months of the year, supported by growing demand for data centre infrastructure linked to artificial intelligence.
February could therefore mark another important chapter in Rolls-Royce's transformation, with investors watching closely for a possible upgrade to its financial ambitions.
UCapital24 S.p.A. or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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