Rolls-Royce has announced a £1.5 billion interim share buyback, accelerating returns to shareholders after strong trading across its civil aerospace, defence and power systems businesses.

The FTSE 100 engineering group said in a trading update on Thursday 12 November that it had substantially completed its previously announced £2.5 billion buyback programme for 2026, having repurchased £2.4 billion of shares so far. The new interim programme will be completed by the time it reports full-year results in February 2027 and forms part of its existing £7 billion to £9 billion buyback programme running from 2026 to 2028.

Engine demand drives confidence

Rolls-Royce said its large engine order backlog had grown to around 2,500 engines, with strong demand across its businesses. Large engine flying hours grew 4% year on year in the first 10 months of 2026, reaching 114% of 2019 levels. The company also said it was finalising a significant multi-year contract to supply backup engines to a hyperscaler, alongside a framework agreement running to 2031.

Chief executive Tufan Erginbilgic said the group had delivered strong operational, strategic and financial progress in the second half of 2026, giving it further confidence in its full-year guidance of £4.7 billion to £4.9 billion of underlying operating profit and £3.8 billion to £4.0 billion of free cash flow.

What happens next

UBS will carry out the buyback on Rolls-Royce's behalf through market purchases on the London Stock Exchange, and the programme is expected to complete no later than 23 February 2027. Erginbilgic said the company would revisit its medium-term targets when it reports full-year results in February. Reuters reported the buyback alongside the trading update, which was published in full through the London Stock Exchange's regulatory news service.