British American Tobacco ups £1.3bn buyback as 2025 profit tops forecasts
British American Tobacco PLC increased its 2026 share buyback to £1.3 billion after adjusted operating profit rose 2.3% to £11.57 billion for the 2025 calendar year, slightly above expectations of £11.45 billion. Pretax profit surged on continuing growth in vapor and other smokeless products, reflecting accelerating smokeless momentum.
1. 2025 Operating Profit Beats Forecasts
Adjusted operating profit for 2025 rose 2.3% to £11.57 billion, narrowly exceeding market expectations of £11.45 billion and marking a modest acceleration from the previous year’s growth rate.
2. Increased £1.3 Billion Buyback for 2026
The board authorized an enhanced £1.3 billion share repurchase programme for 2026, up from prior levels, aiming to return surplus cash to shareholders and support earnings per share.
3. Smokeless Products Drive Profit Growth
Demand for vapor and other smokeless offerings continued to expand, underpinning a jump in pretax profit and offsetting flat volume trends in traditional cigarettes.
4. Outlook Tempered Despite Strong Results
While the company reiterated full-year guidance, it signalled more cautious volume growth assumptions for 2026, citing competitive pressures and regulatory headwinds in key markets.