Rolls-Royce licenses Saudi production and Rolls-Royce stock sits 9.45 percent below its 52-week high

Published on 10/07/2026 at 10:14 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Profit rose 46 percent to GBP 2.5 billion in six months ended June 30, 2026. Rolls-Royce stock costs EUR 17.00 on October 7, 2026 versus EUR 16.98.

SW-Foto: Ingenieure prüfen Turbinenschaufeln, Rolls-Royce Holdings plc GB00B63H8491 — Rolls-Royce Holdings plc (GB00B63H8491): Schwarzweiß-Reportage zeigt zwei Ingenieure bei genauer Inspektion großer Turbinenschaufeln, Illustration mit AI erstellt.

Rolls-Royce (GB00B63H8491) was trading at EUR 17.00 at Lang & Schwarz on October 7, 2026 at 10:07 a.m. CEST, plus 0.12 percent versus the prior close of EUR 16.98. The company said on October 1, 2026 that it had become the first high-speed engine manufacturer to license local production in Saudi Arabia, according to Rolls-Royce. On the London Stock Exchange, the RR.L share was last at GBp 1,436.20 on October 7, 2026 at 9:13 a.m. BST, 9.45 percent below its GBp 1,586.00 52-week high.

Profit rises 46 percent

Rolls-Royce entered the Saudi announcement with stronger first-half figures. Underlying operating profit rose 46 percent to GBP 2.5 billion in the six months ended June 30, 2026, while the underlying operating margin reached 22.5 percent, according to Scottish Widows.

The same report said free cash flow reached GBP 2.0 billion in that six-month period. Rolls-Royce also raised its fiscal 2026 underlying operating profit outlook to GBP 4.7 billion to GBP 4.9 billion from GBP 4.0 billion to GBP 4.2 billion, while its free cash flow outlook moved to GBP 3.8 billion to GBP 4.0 billion from GBP 3.6 billion to GBP 3.8 billion.

Analysts see room above 1,900 pence

Analyst expectations provide a second valuation reference, but they are expressed in pence rather than euros. MarketBeat reported that Berenberg raised its target from GBp 1,430 to GBp 1,900 on August 18, 2026 and assigned a buy rating. Against the LSE price of GBp 1,436.20, that target lies 32.29 percent above the quoted share price.

The operating backdrop is broad rather than dependent on one division. In the first half of 2026, Defence posted an underlying operating margin of 21.0 percent and Power Systems reached 20.3 percent, according to Scottish Widows. That mix gives the Saudi licensing move a wider strategic setting across air, sea and land power systems.

Euro quote holds above prior close

Rolls-Royce was trading at EUR 17.00 at Lang & Schwarz on October 7, 2026 at 10:07 a.m. CEST, plus 0.12 percent versus the prior close of EUR 16.98 on October 6, 2026. The further course of trading is shown by the continuously updated real-time quote of Rolls-Royce stock.