European Investor
12 Feb 2026, 16:38
British American Tobacco reported accelerating momentum in 2025, delivering results at the top end of guidance and reinforcing confidence in its mid-term growth outlook from 2026.
Reported revenue declined 1.0% due to currency effects but increased 2.1% at constant FX. New Categories revenue rose 7.0% for the year, returning to double-digit growth in H2, with contribution up 77% to £442 million. Smokeless products now represent 18.2% of Group revenue, with 4.7 million new consumers added, bringing the total to 34.1 million.
The U.S. business showed strong combustibles growth, while Velo Plus delivered triple-digit revenue growth and reached the number two position in volume and value share. Adjusted profit from operations increased 2.3%, and adjusted diluted EPS rose 3.4%. Reported profit and EPS rose sharply, mainly due to movements in the Canadian settlement provision.
The Group reaffirmed its mid-term targets of 3–5% revenue growth, 4–6% adjusted operating profit growth and 5–8% adjusted diluted EPS growth, with 2026 expected at the lower end as investment continues. Leverage is projected to fall within the 2.0–2.5x range by end-2026. A 2.0% dividend increase to 245.04p and a £1.3 billion share buyback for 2026 were announced.
Reported revenue declined 1.0% due to currency effects but increased 2.1% at constant FX. New Categories revenue rose 7.0% for the year, returning to double-digit growth in H2, with contribution up 77% to £442 million. Smokeless products now represent 18.2% of Group revenue, with 4.7 million new consumers added, bringing the total to 34.1 million.
The U.S. business showed strong combustibles growth, while Velo Plus delivered triple-digit revenue growth and reached the number two position in volume and value share. Adjusted profit from operations increased 2.3%, and adjusted diluted EPS rose 3.4%. Reported profit and EPS rose sharply, mainly due to movements in the Canadian settlement provision.
The Group reaffirmed its mid-term targets of 3–5% revenue growth, 4–6% adjusted operating profit growth and 5–8% adjusted diluted EPS growth, with 2026 expected at the lower end as investment continues. Leverage is projected to fall within the 2.0–2.5x range by end-2026. A 2.0% dividend increase to 245.04p and a £1.3 billion share buyback for 2026 were announced.
