London, June 13, 2026, 22:03 BST
- Imperial Brands bought back 270,000 shares on June 12 as part of its £1.45 billion buyback program.
- IMB edged up in Friday’s late quote, but the stock trailed the FTSE 100, which had a better day.
- The next key question is if profit growth in the second half picks up enough to back up guidance and keep cash returns on track.
Imperial Brands PLC stayed in the spotlight after reporting it bought back 270,000 ordinary shares for cancellation on June 12 at an average price of 2,797.5322p. The FTSE 100 tobacco company said the transaction, done through Barclays, is part of its £1.45 billion buyback plan. After these shares are settled and cancelled, the number of ordinary shares outstanding, excluding treasury shares, drops to 772,030,293. Buybacks use cash to repurchase shares and, with a lower share count, can lift earnings per share.
Imperial shares closed the week with only a small gain, trading at 2,806p to sell and 2,808p to buy in AJ Bell’s late pricing Friday. That’s up 10p, or 0.36%. The FTSE 100 closed higher, up 1.63% on the day. AJ Bell data showed Imperial’s market cap at £21.52 billion. Its dividend yield stood at 5.79% and price-to-earnings ratio was 13.16. The P/E ratio measures share price against annual earnings.
Imperial’s stock relies on steady cash returns, so the latest update could move the share price. In May, the company said it finished £809 million in buybacks for the first half and bumped up its interim dividend by 4.0%. Twelve-month free cash flow came in at £2.6 billion. Free cash flow, the amount left after costs and capital spending, covers dividends, buybacks, and cutting debt.
Imperial’s bull case hangs on strong cashflow supporting its dividend, buybacks, and spend on NGPs—vapes, heated tobacco, oral nicotine. Half-year numbers showed Tobacco & NGP net revenue up 1.8%, adjusted EPS up 5.3% in constant currency, with full-year guidance unchanged. Chief Executive Lukas Paravicini said the group is “confident of delivering a step-up in adjusted operating profit growth” for the second half. Imperial Brands Corporate Website
Bears point out that Imperial’s operating numbers don’t match its solid cash returns. First-half reported operating profit slid 36.5%, and reported EPS was down 38.1%. The decline was mainly tied to Delaware settlement costs and work on the 2030 strategy. Back in April, Imperial said it expected only limited share loss in its top five tobacco markets for the first half. Price increases supported profit, but the company flagged greater uncertainty in the macro outlook due to Middle East tensions.
Analyst sentiment on Imperial isn’t running hot but stays positive. According to Imperial’s June 11 consensus, analysts see FY26 constant-currency Tobacco & NGP net revenue up 2.2% and total group adjusted operating profit up 3.1%. Adjusted EPS is put at 333.7p. Google Finance lists 6 buys, 3 holds, no sells from 9 analysts in the past three months. Their average 12-month target price is 3,327.78p compared to the current 2,799p.
The next shareholder event is the first interim dividend on June 30. The larger trigger comes with full-year results on November 17, when investors will see if improved profit in the second half, more NGP growth and the share buyback show up in better per-share numbers. Based on facts, Imperial looks reasonable for income hunters, with its yield, buyback and cash flow. But it is still a tough pick for investors who want low-regulation growth—tobacco volumes, share pressure, legal spend and the 2030 plan all weigh on the valuation.
