Rolls-Royce Announces New £200 Million Share Buyback Program

Rolls-Royce Holdings plc (LSE: RR.) has unveiled a new interim share buyback program valued at £200 million, set to commence on January 2, 2026, and expected to conclude by February 24, 2026.

The program follows the completion of its previously announced £1 billion share buyback for 2025 in November 2025.

The interim buyback is scheduled ahead of the company's full-year 2025 results announcement on February 26, 2026. The total allocation for share buybacks in 2026 will be subject to board review and approval, with specifics to be revealed alongside the FY25 results.

Rolls-Royce has entered into a non-discretionary agreement with UBS AG London Branch (UBS) to execute the program. UBS will independently make market purchases of the company's ordinary shares on the London Stock Exchange, acting as a riskless principal. The agreement allows Rolls-Royce to terminate under limited circumstances, ensuring a degree of control.

The shares acquired by UBS will be sold back to Rolls-Royce and subsequently cancelled, reducing the company's share capital. Shareholders authorized the repurchase of up to 850,489,698 shares at the 2025 Annual General Meeting on May 1, 2025, setting the upper limit for the program.

All share repurchases will comply with the authority granted at the 2025 AGM, the Market Abuse Regulation 596/2014, Commission Delegated Regulation (EU) 2016/1052 (as incorporated into UK law), and Chapter 9 of the Financial Conduct Authority's UK Listing Rules. This ensures regulatory compliance and transparency.

The company will announce the details of each day's share repurchases by 7:30 a.m. on the following business day, adhering to UK Listing Rules and maintaining transparency for investors.

This buyback program signals Rolls-Royce's confidence in its financial position and future prospects. By reducing the number of outstanding shares, the company aims to increase earnings per share and potentially boost its stock price, rewarding shareholders.