London, Feb 12, 2026, 08:35 (GMT) — Regular session
- British American Tobacco shares up about 0.4% in early London trading
- Company flags a £1.3 billion 2026 share buyback and lifts dividend 2%
- Investors focus on U.S. nicotine pouch momentum as vaping faces pressure from unregulated products
British American Tobacco (BATS.L) shares edged higher in early London trade on Thursday after the cigarette maker posted a rise in annual profit and refreshed its shareholder returns plan for 2026. The stock was up about 0.4% at around 4,444 pence. (Investing)
The company said adjusted profit from operations — which strips out one-off items — rose 2.3% to 11.279 billion pounds in 2025, while revenue was up 2.1% at constant currency, excluding exchange-rate swings. BAT also lifted its dividend 2% to 245.04 pence per share and said it would run a 1.3 billion pound share buyback in 2026. (BAT)
Why it matters now: BAT is trying to convince investors its “smokeless” push can deliver growth while cigarette volumes keep sliding. In the U.S., its Velo nicotine pouch has been taking share from Philip Morris International’s Zyn and Altria’s On!, and the company said uptake of its Vuse vape was improving even as unregulated products weighed on the market. (Reuters)
A regulatory filing on Thursday showed BAT bought back 129,826 shares on Feb. 11, paying between 4,390 pence and 4,450 pence per share, as part of its programme. The company said it intends to cancel the shares. (TradingView)
The updates land days after BAT extended chair Luc Jobin’s tenure for up to two years, to the April 2028 annual general meeting, while it continues a succession search. Senior independent director Holly Keller Koeppel said the move “removes uncertainty” during the group’s transformation. (BAT)
The stock has traded between 4,331 pence and 4,477 pence so far on Thursday, and sits near the upper end of its 52-week range of 2,916 pence to 4,615 pence. (Share Prices)
But there are ways this goes wrong. BAT said it expects global cigarette industry volumes to fall about 2% in 2026, and it flagged foreign-exchange headwinds that could clip earnings growth — risks that matter for a sector where price rises and cost control do a lot of the heavy lifting. (TradingView)
The next catalyst comes at 9:30 a.m. GMT, when chief executive Tadeu Marroco and his team host the results presentation and take investor questions. Traders will be listening for any shift in how fast BAT expects smokeless growth to build — and how hard it will have to spend to get there. (BAT)
