LONDON, March 19, 2026, 17:32 GMT
- BAT slipped 0.6% to close at 4,355 pence in London—still outperforming the FTSE 100’s 2.4% slide. 1
- The company updated its £25 billion Euro Medium Term Note programme, and disclosed it repurchased 125,797 shares for cancellation. 2
- BAT’s 2026 growth outlook isn’t wowing anyone, and the regulatory heat on nicotine remains a drag, but steady cash returns keep drawing investors. 3
British American Tobacco slipped 0.6% to 4,355 pence in Thursday’s London trading, after updating its £25 billion bond programme just a day before and announcing more buybacks. Despite the dip, the stock outperformed the broader market as the FTSE 100 dropped to its lowest in two months in a sweeping risk-off move. 1
The timing is key here: BAT is doubling down on balance sheet discipline and rewarding shareholders, just as growth appears set to brush up against the lower limit of its guidance. Back in February, Chief Executive Tadeu Marroco warned that 2026 results would likely land at the bottom of BAT’s mid-term range, while still pledging a £1.3 billion buyback and ongoing dividend growth in sterling. 3
BAT on Wednesday filed a base prospectus for its Euro Medium Term Note programme—a kind of debt shelf, letting it access bond markets as needed. The Financial Conduct Authority gave the green light for a programme that could total up to £25 billion, covering both senior notes coming from group finance entities and subordinated notes issued directly by the parent company. 2
Just a day on, BAT disclosed it picked up 125,797 shares on March 18, paying a volume-weighted average price of 4,416.2721 pence per share, and those shares are set for cancellation. That brings the tally of ordinary shares in issue—excluding treasury stock—to 2.173 billion, the company said. 4
BAT’s ongoing buybacks matter for shareholders. Back in February, the company said it was aiming to get leverage down to between 2.0 and 2.5 times by the close of 2026. CEO Marroco promised “progressive dividends” as well as “sustainable share buy-backs.” 3
Income is still a key attraction here. On Tuesday, BAT announced a first-quarter 2026 dividend of 61.26 pence per share, set for payment on May 7 to those holding shares as of March 27. 5
The main debate centers on smokeless products picking up more slack. BAT reported that these products accounted for 18.2% of group revenue in 2025. On the February earnings call, Marroco said, “We are extremely encouraged” by Velo’s U.S. showing—now sitting at No. 2 in market share, just behind Philip Morris’s Zyn. 3
That lines BAT up directly against Philip Morris—and, in some slices of the U.S. market, Altria too. Back in February, Philip Morris flagged that investors were fretting BAT and other competitors might chip away at Zyn’s pace. Jefferies analyst Andrei Andon-Ionita, though, argued BAT still looked poised to capture share in U.S. nicotine pouches. 6
Risks remain stubborn. BAT points out that roughly 70% of U.S. e-cigarette sales still come from unregulated products, undercutting progress in both vaping and traditional tobacco. Marroco told Reuters that any benefit from a potential U.S. import ban on certain disposables likely won’t show up before 2027. There’s also a separate headache: BAT is up against a shareholder lawsuit in London, accused of failing to fully disclose past sanctions violations linked to North Korea. 7
The stock isn’t in a comfortable spot right now. BAT keeps delivering on the things UK income investors chase—steady cash returns, less debt, a hefty, stable earnings base. But there’s a catch: investors are being asked to buy into a smokeless pivot that’s still vulnerable to regulatory risks and black-market rivals. “Not quite what the share price needed,” Panmure Liberum analyst Rae Maile said after BAT’s December guidance. 3
BAT’s U.S. shares edged up roughly 0.6% to $58.41 in New York afternoon trading. Investors seemed to view the latest filings as routine funding maintenance, not as a fresh red flag.
