Rolls-Royce Sets Out $2 Billion Buyback After Demand Boosts Orders

By Joshua Kirby

Rolls-Royce said it would buy back 1.5 billion pounds ($1.99 billion) of shares over the coming months and revisit its medium-term targets amid strong demand.

The U.K. engineering and defense company said Thursday that the interim buyback to February is part of a wider buyback of up to 9 billion pounds between this year and 2028.

"This reflects our continued confidence in sustainable free cash flow growth driven by our transformation and the significant value creation we continue to see ahead," Chief Executive Officer Tufan Erginbilgic said.

Rolls-Royce said it would revisit its medium-term targets when it sets out full-year results for 2026 in February. Earlier this year, the company lifted its guidance for 2026 operating profit to between 4.7 billion and 4.9 billion pounds, up from previous guidance of 4 billion to 4.2 billion pounds.

The company said it continues to see strong demand across its divisions, including in defense and civil aerospace. Deliveries of engines to civil customers were significantly higher over the year to date, Rolls-Royce said. In the power-systems business, orders rose 62% on year over the first nine months, with the backlog standing at 8.6 billion pounds at the end of the third quarter.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

November 12, 2026 02:35 ET (07:35 GMT)