LONDON, March 16, 2026, 15:31 GMT
British American Tobacco jumped 1.6% to 4,590 pence in late London trading on Monday, comfortably ahead of the FTSE 100’s 0.89% rise, after the tobacco group dropped a fresh buyback filing.
There’s a reason the filing draws attention now: BAT has put cash returns front and center in its 2026 pitch to investors. Back in February, chief executive Tadeu Marroco pledged to keep “delivering sustainable shareholder value through robust cash returns.” The company laid out plans for a 1.3 billion pound buyback for 2026 and said it’s aiming to keep net leverage—debt versus earnings—between 2.0 and 2.5 times by year-end 2026. BAT
British American Tobacco snapped up 123,647 shares from Banco Santander on March 13, paying an average 4,493.0639 pence, with trades ranging from 4,413p to 4,530p, according to Monday’s filing. Those shares are earmarked for cancellation, which will bring the total outstanding—excluding treasury stock—to 2,173,624,451 ordinary shares.
Buybacks cut down the share count, which typically props up earnings per share as time goes on. BAT shares are hovering near the upper end of their 52-week band—2,916p on the low side, 4,673p at the top. The company’s market cap stands near 98.2 billion pounds, and the dividend yield comes in around 5.34%.
BAT’s message isn’t limited to cigarettes. Last month, the company reported that smokeless products — nicotine pouches, vapes, and heated tobacco — accounted for 18.2% of 2025 revenue. Revenue in those newer segments rose 7% for the year, with double-digit growth coming back in the second half.
The change is most pronounced in the U.S., where BAT’s Velo pouch moved up to the No. 2 spot by market share, Reuters noted back in February. That put it just behind Philip Morris International’s Zyn and ahead of Altria’s On!, taking share from both. Marroco called Velo’s U.S. performance “extremely encouraged.” Reuters
Still, BAT has kept its expectations in check. Back in December, the company flagged that sales and profits for 2026 would probably hit the lower end of its mid-term guidance, citing persistent U.S. vaping regulation and competition as headwinds. “I’m trying to be cautious for 2026,” Marroco said. Reuters
The market didn’t take kindly to that note of caution. Panmure Liberum’s Rae Maile commented the outlook was “perhaps not quite what the share price needed,” especially with the stock’s previous strong performance. Reuters
There’s another cloud: legal trouble. On March 5, Reuters said BAT is being sued by shareholders in London, accused of not adequately disclosing past sanctions violations linked to its operations in North Korea. BAT responded that it knew about the lawsuit.
At the moment, the spotlight is on buybacks, yield, and the question of whether BAT’s smokeless products can carry a bigger share of growth. Shares traded late in London at 4,590 pence, up 71 pence from their prior close.
