LONDON, March 16, 2026, 15:31 GMT
British American Tobacco shares rose 1.6% to 4,590 pence in late London trade on Monday, outpacing the FTSE 100’s 0.89% gain, as investors digested a new buyback filing from the tobacco group. 1
The filing matters now because BAT has made cash returns a core part of its 2026 case to shareholders. In February, chief executive Tadeu Marroco said he was “committed to delivering sustainable shareholder value through robust cash returns”, and BAT set out a 1.3 billion pound 2026 buyback while targeting net leverage — debt relative to earnings — of 2.0 to 2.5 times by the end of 2026. 2
Monday’s notice showed BAT bought back 123,647 shares on March 13 from Banco Santander at a volume-weighted average price of 4,493.0639 pence, paying between 4,413p and 4,530p. The company said it would cancel the stock, leaving 2,173,624,451 ordinary shares in issue, excluding treasury shares. 3
A buyback trims the number of shares on the market and can support earnings per share over time. BAT is already close to the top of its 52-week range of 2,916p to 4,673p, with a market value around 98.2 billion pounds and a dividend yield of about 5.34%. 1
The group’s broader pitch goes beyond cigarettes. BAT said last month that smokeless products — nicotine pouches, vapes and heated tobacco — made up 18.2% of 2025 revenue, while revenue from those newer categories grew 7% for the year and returned to double-digit growth in the second half. 2
That shift matters most in the United States. Reuters reported in February that BAT’s Velo pouch had risen to No. 2 in U.S. market share behind Philip Morris International’s Zyn, while also taking share from Zyn and Altria’s On!, and Marroco said he was “extremely encouraged by the U.S. performance of Velo.” 4
BAT, though, has been careful not to get ahead of itself. In December the company said 2026 sales and profit growth were likely to land at the lower end of its mid-term ranges because regulation and competition in U.S. vaping were still weighing, and Marroco said, “I’m trying to be cautious for 2026.” 5
That caution landed badly at the time. Rae Maile, an analyst at Panmure Liberum, wrote the outlook was “perhaps not quite what the share price needed” after the stock’s earlier strong run. 5
Legal risk also hangs over the story. Reuters reported on March 5 that BAT is facing a London shareholder lawsuit over allegations it failed to properly tell markets about historical sanctions breaches tied to its North Korea business; BAT said it was aware of the claim. 6
For now, investors look more focused on buybacks, yield and whether BAT’s smokeless brands can shoulder more of the growth burden. The shares were 71 pence above the previous close of 4,519 pence in late London trade. 1
