Rolls Royce Share Price in Focus as £9bn Buyback, £3bn UltraFan Push Reframe Priorities

Why this matters now: the company’s recovery — a 40% jump in profits and underlying profit of £3. 5bn for 2025 — is being translated into one of the largest cash returns in a decade and a public appeal for taxpayer support on a new engine. That mix of a big buyback and a government funding request will be watched closely by investors and the public; rolls royce share price is likely to react first to shifts in buyback delivery, government response and updated profit guidance.

How a record payout and an engine petition reshape expectations for Rolls Royce Share Price

Here’s the part that matters: the company has promised up to £9bn back to shareholders while also seeking public backing for a strategic engineering investment. Management has announced a share-return framework that ranges from £7bn to £9bn for 2026–2028, with £2. 5bn earmarked for completion this year, and the board separately flagged an intention to give up to £9bn to shareholders over the next three years. Those moves change the balance between cash returned to owners and capital directed at new product development — and that trade-off is a central driver for rolls royce share price in the near term.

Event details: profits, guidance and the scale of returns

• Underlying profit for 2025: £3. 5bn, up from £2. 5bn the year before (a 40% increase).
• Company buyback commitments: stated as up to £9bn over three years; corporate messaging details a £7bn–£9bn program for 2026–2028 with £2. 5bn to be completed this year.
• Forecasts and targets: upgraded mid-term underlying operating profit guidance of £4. 9bn–£5. 2bn and free cash flow targets of £5. 0bn–£5. 3bn.
• Corporate adjustments: the group recognised a £277m credit to underlying profit after tax in 2025 related to deferred tax assets on UK tax losses; this figure has been adjusted in earnings-per-share and payout calculations.

The UltraFan 30 engine ask and the return to short-haul

The company is pushing for taxpayer support for a £3bn engine project aimed at powering smaller commercial planes; the engine is identified as the UltraFan 30. Leadership says the project would allow a return to the short-haul, narrow‑body market that the firm exited in 2013. Management has already invested more than £1bn in the programme and has requested an initial UK government contribution between £100m and £200m to develop and test the engine. Executives framed the appeal against recent government industrial priorities and argued that international rivals receive substantially larger state backing.

Business drivers: datacentre demand, power systems and civil aerospace returns

Strong demand for power from datacentres — driven by infrastructure buildouts to support AI — helped the power systems division increase profits by 60% to £852m in the last year. At the same time, the civil aerospace division remains the largest profit contributor: the business serviced more engines, benefited from improved contract terms, and posted a 41% jump in divisional profits to £2. 1bn. The company also highlighted the recurring revenue model tied to engine flight hours.

Trade tension, corporate transformation and shareholder mechanics

The company navigated a tariff dispute in 2025 tied to a broader trade conflict, and its engines were exempted from tariffs as part of a US–UK trade deal concluded in May. Leadership has pushed a turnaround since a management change in January 2023: the current chief executive, a former BP executive, said the transformation has proceeded with "pace and intensity, " pointing to cost cuts, renegotiated contracts and stronger commercial terms as drivers of improved results. The firm also confirmed a dividend payable on 3 June 2026 to ordinary shareholders on the register at 24 April 2026, with a dividend reinvestment plan offered.

Strategic framing from the company emphasises delivery of complex power and propulsion solutions for safety‑critical applications across air, sea and land, noting more than a century of innovation and a stated role in addressing environmental and societal challenges. Management said the strategic framework rests on four pillars and that significant progress was made over the past three years, with more expected in 2026.

Mini timeline and forward signals

• 2013: the firm exited the market for smaller jet engines (return flagged by new project).
• January 2023: current CEO took over and described the business as standing on a "burning platform. "
• 2025: underlying profit rose to £3. 5bn; power systems profit £852m; civil aerospace profit £2. 1bn; trade deal in May exempted engines from tariffs.
• 2026–2028: announced share buyback range of £7bn–£9bn, with £2. 5bn planned for this year and a dividend scheduled for 3 June 2026.

If you're wondering why this keeps coming up, the real question now is how government support decisions and the timing of buybacks will intersect with the company's upgraded profit targets and capital allocation plans.

It's easy to overlook, but the mix of aggressive shareholder returns and a public funding request reflects a deliberately dual strategy: deliver immediate cash returns while seeking external help to re-enter a market that the company left more than a decade ago.