Rolls-Royce’s share price is having a more difficult year than it did in 2025, when it surged to a record high. While it has jumped 21.8% over the past six months, it remains up just 10% year to date. So, is this consolidation a good buying opportunity?

Why the Rolls-Royce share price struggling

Rolls-Royce Holdings stock started the year well, soaring to 1,418p on February 26, two days before President Donald Trump and Benjamin Netanyahu launched their bombardment of Iran. 

The US-Israel-Iran war had a major implication on Rolls-Royce, the second-biggest jet engine manufacturer in the world after General Electric. That’s because Iran responded to the war by causing havoc in the Middle East by launching drone attacks against key infrastructure projects.

Iran attacked airports, leading to a significant slowdown in the civil aviation business in the region. Its top clients paused or dramatically scaled down their operations because of the fear of attacks. 

While Rolls-Royce continued to deliver its engines, the reality is that its core business was affected. This business involves conducting services to its customers’ engines. It charges customers for every flying hour, a move that is normally affected whenever aircraft are packed.

On the positive side, Rolls-Royce mostly focuses on wide-body aircraft, which are used for long-distance travel. While the business was affected, management noted that the impact was less severe than analysts had expected, as most capacity reductions were in the narrow-body segment. Management said:

“We expect to fully mitigate the current financial impact of the disruption to our business. We continue to monitor the situation for any future direct and indirect impacts and will take the necessary actions to mitigate them.”

The management also believes that the company will hit its set targets for the year. It expects that its profit and free cash flow will be 4.2 billion and 3.8 billion, respectively.

Rolls Royce has some key catalysts

The Rolls-Royce stock price has some notable catalysts that will boost its performance over time. For example, the company’s civil aviation business has been less affected than initially feared.

Also, its defense business will likely benefit from the continued spending in Europe and in the United States. Most European countries have vowed to boost their spending, while Trump has proposed spending $1.5 trillion in defense spending this year.

Most importantly, the company has a large power business that is positioning itself in the data center industry. Indeed, the management noted that its orders in this segment jumped to a record high in March, with its backlog soaring to over 7.3 billion pounds. It also has a small modular reactor business that will likely thrive in the future.

Rolls-Royce share price technical analysis

RR stock chart | Source: TradingView The daily chart shows that the RR stock price has rebounded in the past few weeks. It has jumped from a low of 1,092p in March and April to the current 1,272. 

The stock remains above the 100-day moving average, a sign that bulls remain in control for now. Also, it is hovering along the descending trendline that links the highest swings in February. 

Therefore, the most likely Rolls-Royce share price forecast for June is bullish, with the initial target being the year-to-date high of 1,418p. A move above that level will point to more gains, potentially to 1,500p.

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