Rolls-Royce (LSE:RR.) has had a phenomenal run in recent years, returning investors 1,030% over the last five years.

However, 2026 has not been the year of aircraft engine manufacturers so far. In fact, the last few weeks have not been very successful for the company.

Since April 17, its shares have fallen 9.8%. If the investor had put £5,000 into the company’s shares on that day, he or she would have already lost £490. Their investment would therefore drop to £4,510.

But I still think Rolls-Royce is a great company. So, can the decline in the company’s share prices be an opportunity to consider purchasing some of its shares?

Confidence in guidance

Yesterday (April 30), Rolls-Royce published a stock update covering the quarter ending March 31. Even during the Iran war, CEO Tufan Erginbilgic commented that their forecasts of underlying operating profit of £4-4.2 billion and £3.6-3.8 billion free cash flow for 2026 remain unchanged.

This may reassure some investors, considering current events in the world. Other reasons for optimism include:

• In the three months to March, huge engine flight hours (EFH) increased by 5% to 115% over 2019 levels.
• EFH in 2026 is expected to be 115-120% of 2019 levels.
• Large engine original equipment (OE) shipments increased 18% in the first quarter.
• Defense OE shipments increased 20% year-on-year.
• March saw a record month for power system orders, with the order backlog totaling £7.3 billion.

Even after the CEO’s statements, investors should not ignore the fact that the war in Iran poses a high risk to the company. Rising jet fuel prices are a massive problem because they can reduce demand for flights and, in the event of a shortage, even supply.

Some airlines say the risk of such jet fuel shortages is decreasing. However, it should not be ignored that if this were to happen, it would hit Rolls-Royce’s largest and most profitable civil aviation division.

That said, I still believe the company’s catalysts should position it for long-term success.

Power systems and nuclear energy

If you’ve read my previous articles about Rolls-Royce, you may have noticed that I’m a particular fan of its investments in tiny modular reactors (SMRs).

Ultimately, this could revolutionize the way nuclear energy is used and be a game changer for the company in the long run.

It is already implementing contracts for the construction of three SMRs in Wales and six in the Czech Republic.

However, I’m starting to become a massive fan of the company’s other business, the Power Systems division.

As mentioned above, the order book already stands at £7.3 billion. And I only see the demand for it continuing to grow.

This is because, with the rise of artificial intelligence, $3 trillion is expected to be spent on data centers by 2028. They will need to be powered somehow, and Rolls-Royce hopes its power systems and nuclear reactors can support with that.

In the long run, this can be very profitable for the company. Therefore, I believe that the recent decline in its share price provides an opportunity for investors to consider purchasing some of its shares.