Rolls-Royce Announces £1.5bn Interim Buyback as Large Engine Backlog Reaches About 2,500 Engines
Why It MattersA growing large-engine backlog paired with flying hours at 114% of 2019 levels points to sustained engine demand and aftermarket activity, with capital returns now running alongside delivery growth.
Rolls-Royce Holdings Plc issued a trading update in November 2026 announcing an interim share buyback of £1.5bn, to be completed by its Full Year results on 25 February 2027. The buyback forms part of the company's existing £7bn–£9bn share buyback programme across 2026 to 2028. The company also said it will revisit its mid-term targets at its Full Year results in February.
In Civil Aerospace, the large engine order backlog has grown to around 2,500 engines. Second-half orders include 70 Trent 7000 engines for Avolon and 22 Trent 7000 engines for the Cathay Group, while Air China and Philippine Airlines selected 15 Trent XWB-84 and 18 Trent XWB-97 engines, respectively. Large engine flying hours grew 4% year on year in the first 10 months of 2026 to 114% of 2019 levels (H1 2026: 113%), and full-year flying hours are expected towards the lower end of the 115%–120% range of 2019 levels. About 60% of the eligible in-service Trent 1000 fleet has been upgraded to the XE standard, and almost the entire Trent 7000 airline fleet has received improved HP turbine blades. The Airbus A350F, powered exclusively by the Trent XWB-97, completed its first flight in September, with entry into service planned for 2027 and orders for more than 100 aircraft from 14 airlines. In October, Rolls-Royce and the UK Government announced plans for a joint 10-year £2.5bn research and technology programme for civil and defence gas turbine technologies.
In Defence, the MQ-25A Stingray autonomous refueller, powered by AE 3007 engines, completed its second test flight in July, and work on GCAP reached the final stages of the demonstrator design. In August, Rolls-Royce announced its strategic intent to partner with Reliance Industries on an indigenous combat engine for India's Advanced Medium Combat Aircraft programme.
In Power Systems, order intake in the first nine months rose 62% year on year, and the order backlog at the end of September stood at a record £8.6bn (H1 2026: £8.0bn). Gas engine orders in power generation nearly tripled year on year, driven by data centre demand. The company is finalising a significant multi-year contract to supply backup engines to a hyperscaler, alongside a framework agreement extending to 2031. A new logistics and operations centre opened in Mankato, USA in July, and the next-generation engine remains on track for launch in 2028.
