British American Tobacco PLC

Latest Results (29.08.2026):

British American Tobacco PLC — Half‑Year (H1) 2026 results (six months to 30 June 2026, covering Q1 and Q2 2026): H1 performance was broadly in line with management expectations as the group accelerates its New Categories transition while maintaining combustibles revenue. Group revenue was up modestly year‑on‑year and New Categories showed strong double‑digit growth; management reconfirmed full‑year 2026 guidance and expects adjusted diluted EPS to be towards the middle of its 5–8% guidance range.

Revenue and mix

Group revenue £12,235m, reported +1.4% (constant currency +2.9%). Smokeless products now represent 19.8% of Group revenue (up 1.6 percentage points vs FY2025). New Categories accounted for £1,928m of revenue.

New Categories momentum

New Categories revenue grew 18.0% at constant currency, driven by Modern Oral (global revenue +65.9% CC) and return to double‑digit growth in U.S. Vapour; New Categories contribution margin rose 3.3 ppts to 13.8% and category contribution increased 54.7%.

Profitability and EPS

Reported profit from operations was down materially (reported -15.8% to £4,266m) partly due to a prior‑year credit; adjusted profit from operations (as adjusted for Canada) rose ~3.5% at constant currency. Reported diluted EPS fell to 145.3p (-28.6%), while adjusted diluted EPS (as adjusted for Canada) increased (~+7.9%).

Regional and product highlights — U.S. focus

U.S. was a key driver: New Categories revenue in the U.S. grew 58.1% CC and overall U.S. performance was strong across categories. Management plans national roll‑out of Velo Max and a controlled roll‑out of select adult‑focused Vuse flavours in H2 2026, expecting to benefit from recent FDA guidance and enforcement activity.

Combustibles and market share

Combustibles revenue improved (+2.1% CC), led by the U.S. and AME, with active investment in competitive markets to stabilise volumes; cigarette volume share reported down 30 bps and cigarette value share down 40 bps versus 2025.

Cash flow, capital allocation and balance sheet

Strong cash generation: net cash from operations £3,402m (+47%), free cash pre‑dividend £2,285m (+85%). Adjusted net debt £31,969m; management expects to reach year‑end leverage target (2.0–2.5x) and confirmed a £1.3bn share buy‑back programme plus commitment to dividend growth in sterling.

Guidance and outlook

Confirmation of full‑year 2026 guidance: Group revenue growth targeted at lower end of 3–5% with mid‑teens New Categories revenue growth, adjusted PFO growth 4–6% (H2 weighted), adjusted diluted EPS growth expected towards middle of 5–8%, gross capex approx. £750m and strong operating cash conversion (>95%).