Rolls-Royce Rebounds 3% as Buyback, Avolon Order and Unconfirmed UltraFan Aid Offset Safran's Aftermarket Shadow
Published on 10/26/2026 at 14:02 | Editorial boerse-global.de
Rolls-Royce shares climbed 3.0% to €14.39 on Monday, clawing back part of the ground lost at the end of last week when a warning from French engine rival Safran knocked the entire aerospace and defence complex lower.
The sell-off came on Friday, when Rolls-Royce shed 6.7%. Investors were reacting to Safran's third-quarter 2026 results: revenue grew, but the market fixated on the outlook for the aftermarket — the spare parts and maintenance business that has become a profit engine for engine makers. Reuters reported that shareholders feared growth in that segment could slow through 2027. Jefferies analysts weighed in on Friday, noting that growth in Safran's propulsion aftermarket had decelerated and fallen short of expectations. Worries about softer demand in the widebody market added to the pressure, and high fuel prices darkened the sector backdrop further. The retreat was therefore tied to a competitor's trading update and a weak industry environment rather than to anything specific at Rolls-Royce.
Buyback Marches On
Against that unsettled backdrop, the company's own news flow has been steady. Rolls-Royce disclosed the purchase of 7,044,797 ordinary shares under its £2.3 billion buyback programme. The shares have already been acquired; the company said it intends to cancel them.
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UltraFan Support Still Just a Report
Company-specific attention also fell on a Financial Times report that Rolls-Royce was close to securing up to £200 million in British government support for an engine demonstrator. The money would fund development and testing of an UltraFan 30 demonstrator. Reuters said it could not immediately verify the report independently, and Rolls-Royce declined to comment. The funding therefore remains a media report rather than a confirmed government commitment.
Engineering Wins Pile Up
On the military side, Rolls-Royce notched a technical milestone on Wednesday: the AE 1107 engine destined for the US Army's MV-75 Cheyenne reached full power with a new digital FADEC control system, Axios reported, citing executives. The advance concerned the integration of the engine with the new digital controls.
Commercial momentum is building too. Roughly two weeks ago Rolls-Royce welcomed an order from Avolon for 70 Trent 7000 engines, which will power 35 Airbus A330-900 aircraft. The lessor's commitment was confirmed by the company.
Service Upgrade Without a Price Tag
Closer to home, Rolls-Royce said just over a week ago that it was expanding the maintenance scope and customer benefits of its CorporateCare Enhanced programme in business aviation. According to the company, the programme's hourly rate will not rise as a result — the added services come at no surcharge.
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