Multi-Year Buyback Raises the Stakes
Central to Thursday’s announcement was a sweeping shareholder return strategy. Rolls-Royce confirmed it will complete £2.5 billion in share buybacks this year as part of a multi-year program totaling between £7 billion and £9 billion — roughly $12 billion — spanning 2026 through 2028. The scale exceeds earlier media expectations.
The aggressive capital return comes as the company rides momentum across its three core divisions: civil aerospace, defense and power systems.
Transformation Delivers Record Results
In 2025, underlying operating profit leapt more than 40% to a record £3.46 billion, surpassing FactSet estimates of £3.32 billion. Underlying revenue climbed 12% to £20.1 billion.
It marked the fourth consecutive year the company has outperformed earnings expectations — a streak that has fueled investor enthusiasm. Over the past 12 months, shares have more than doubled, buoyed by a sweeping transformation plan launched by Erginbilgic that slashed costs and sharpened focus on core operations.
Jefferies analyst Chloe Lemarie described the beat-and-raise report as a “high quality release,” noting that much of the profit strength stemmed from the power systems unit.
That division, riding a global surge in data center construction reliant on Rolls-Royce power generation systems, generated £4.89 billion in revenue in 2025 — reflecting 19% organic growth year over year.
The civil aerospace segment — the company’s largest revenue and profit contributor — posted 15% growth compared to last year, supplying engines to aircraft makers including Boeing and Airbus. The defense unit advanced 8%.
Rolls-Royce stands among the world’s four leading aero engine manufacturers, alongside Pratt & Whitney, CFM International and GE Aerospace.
