London, Feb 12, 2026, 08:35 (GMT) — Regular session
- British American Tobacco shares climbed roughly 0.4% in early trading on the London market
- Company announces a £1.3 billion share buyback set for 2026 and raises its dividend by 2%
- Investors are zeroing in on U.S. nicotine pouches, gaining ground while vaping struggles against unregulated competition
Shares of British American Tobacco (BATS.L) nudged up in early London trading on Thursday following a reported increase in annual profits and an updated shareholder returns plan through 2026. The stock climbed roughly 0.4%, reaching about 4,444 pence.
The company reported a 2.3% rise in adjusted profit from operations, which excludes one-off items, reaching 11.279 billion pounds in 2025. Revenue grew 2.1% at constant currency, ignoring exchange-rate fluctuations. BAT also raised its dividend by 2% to 245.04 pence per share and announced a 1.3 billion pound share buyback planned for 2026.
Why it matters now: BAT is pushing hard to prove its “smokeless” strategy can drive growth despite falling cigarette sales. In the U.S., its Velo nicotine pouch is stealing market share from Philip Morris International’s Zyn and Altria’s On!. The company also reported that Vuse vape adoption is picking up, even as unregulated competitors continue to pressure the market. Reuters
On Thursday, a regulatory filing revealed that BAT repurchased 129,826 shares on February 11, paying between 4,390 and 4,450 pence each as part of its ongoing buyback programme. The company confirmed it plans to cancel these shares.
The updates come just days after BAT extended chair Luc Jobin’s term by up to two years, pushing it to the April 2028 annual general meeting as the company hunts for his successor. Senior independent director Holly Keller Koeppel described the extension as a way to “remove uncertainty” amid the group’s ongoing transformation. BAT
On Thursday, the stock fluctuated between 4,331 pence and 4,477 pence, hovering close to the top of its 52-week range, which spans from 2,916 pence to 4,615 pence.
But there are pitfalls. BAT expects global cigarette volumes to drop roughly 2% in 2026. It also warned about foreign-exchange challenges that might dent earnings growth — a big deal in a sector where price hikes and tight cost management carry much of the weight.
The next key moment arrives at 9:30 a.m. GMT, as CEO Tadeu Marroco and his team unveil the results and answer investor questions. Traders will be tuned in for any changes in BAT’s outlook on the pace of smokeless growth—and just how much investment will be needed to drive it.
