Rolls-Royce announces £1.5 billion buyback as engine demand grows

LONDON, Nov 12 (Reuters) - Rolls-Royce said on Thursday its large engine order backlog had grown to around 2,500 engines as it reported strong demand across its civil aerospace and defence businesses and reaffirmed its full-year guidance.

• Rolls-Royce said its performance gave it further confidence in its full-year guidance for underlying operating profit of £4.7 billion-£4.9 billion and free cash flow of £3.8 billion-£4.0 billion

• It was in the process of finalising a significant multi-year contract to supply backup engines to a hyperscaler, alongside a framework agreement extending to 2031

• It announced an interim share buyback of £1.5 billion

• Large engine flying hours (EFH) grew 4% year on year in the first 10 months of 2026, reaching 114% of 2019 levels

• In Power Systems, it continued to see strong order and revenue growth

• Shares in the British company traded up 2.5% in early deals. The stock has risen 20% since the start of the year

(Reporting by Paul Sandle; editing by Sarah Young)