Shares of Rolls-Royce Holdings advanced 2.4% during early London trading, reaching 1,259 pence and boosting the aerospace and defense giant's market capitalization to approximately £104 billion.
Buyback Program Progress
The company executed fresh share repurchases on February 6, acquiring 320,321 shares at an average price between 1,207 and 1,211 pence per share. These transactions occurred across multiple trading venues, including the London Stock Exchange, with all repurchased shares designated for cancellation.
Since launching its £200 million interim buyback program on January 2, Rolls-Royce has now repurchased nearly 13 million shares. The company currently maintains 8.43 billion outstanding shares with zero held in treasury.
Upcoming Financial Milestones
Investors are focusing on the company's full-year 2025 results scheduled for February 26, when management is expected to outline capital return plans for 2026. The current buyback program is set to conclude on February 24, just before the earnings announcement.
Rolls-Royce's business model ties significant aftermarket revenue to flying hours for its large civil aircraft engines, while also serving defense and power systems markets. This exposes the company to both commercial travel cycles and government defense spending patterns.
Market participants will scrutinize the February 26 update for details on cash generation and the potential extension of share repurchases beyond the current program. While buybacks can support share prices, analysts note they offer no protection against potential margin pressure, cash flow challenges, or production disruptions common in the aerospace sector.
The broader European market showed resilience during the session, with the STOXX 600 index rising 0.5% by mid-morning, contributing to positive sentiment across the region.
