Sky News reported expectations of “record profits” in the upcoming results.
- The company had raised the top end of its full-year underlying operating profit guidance by 300 million pounds to 3.2 billion pounds.
- RYCEY also lifted expected free cash flow by 200 million pounds to 3.1 billion pounds for the full year.
- The company began an interim share repurchase programme of up to 200 million pounds on Jan. 2, scheduled to run through Feb. 24.
Shares of Rolls-Royce Holdings (RYCEY) drew heavy retail buzz on Monday after reports said the company could announce a new 1.5 billion-pound ($2 billion) share buyback alongside its annual results due Thursday.
Sky News reported on Sunday that the aircraft engine maker is expected to unveil the buyback when it releases full-year results on Thursday. If confirmed, the programme would follow last year’s capital return, when Rolls-Royce announced a 1 billion pound share buyback alongside its results.
Rolls-Royce Profit Upgrade
The buyback chatter comes after Rolls-Royce upgraded its full-year profit guidance at the half-year stage last July. The company raised the top end of its underlying operating profit guidance by 300 million pounds, taking it to 3.2 billion pounds, and lifted expected free cash flow by 200 million pounds to 3.1 billion pounds.
Sky News said the company is set to report “record profits” and highlight the scale of its turnaround when it reports earnings later this week.
Rolls-Royce Extends Buybacks Into Early 2026
In December, Rolls-Royce said that following the completion of its 1 billion pound share buyback programme for 2025, it would begin an interim repurchase programme of up to 200 million pounds ahead of the release of its full-year results.
That interim programme began on Jan. 2 and is expected to conclude by Feb. 24. Shares bought under the programme are to be cancelled. The company said the total size of buybacks for 2026 remains subject to board review.
Wall Street Backs RYCEY Turnaround
Rolls-Royce has received growing support from analysts in recent months. In November, Morgan Stanley raised its price target and maintained an ‘Overweight’ rating, while RBC Capital initiated coverage with an ‘Outperform’ rating, citing improved execution under the current management team and a “steadier footing: following the company’s multi-year turnaround.
Operationally, Rolls-Royce said its civil aerospace demand has improved, it has reported rising large-engine flying hours, and it has continued momentum across its defence and power systems businesses, including growing demand from data centres.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for RYCEY was ‘extremely bullish’ amid ‘extremely high’ message volume.
One user said, “My favorite company! I have been Bullish since Sept 9th 2022 when I first became a share holder. I wish you all the very best.”
Another user said, “5 years ago we were talking about breaking the $2 wall, now we are approaching $20 bucks imagine!”
RYCEY stock has risen 17% year-to-date.
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