Rolls-Royce launches £1.5bn share buyback after record cash flow surge
Rolls-Royce is set to unveil a new £1.5 billion share buyback programme when it releases its annual results this week. The move comes after the engineering giant raised its profit and cash flow forecasts in July, reflecting strong financial performance.
In July, the company increased its full-year operating profit outlook to £3.2 billion. It also lifted its free cash flow guidance to £3.1 billion. This update followed a trading statement in November 2025, which had already set the underlying operating profit forecast at £3.1 billion to £3.2 billion.
The expected £1.5 billion buyback follows a similar £1 billion repurchase announced around the same period last year. Both programmes signal the firm's confidence in its ability to generate steady cash flow.
The new share repurchase plan will be formally announced alongside the annual results. If approved, it will further reduce the number of shares in circulation while returning value to investors. The company's updated profit and cash flow targets suggest continued financial strength.
