Results are in line with expectations, offering no major catalyst for the stock. Monitor H2 for the pace of Velo Max and Vuse flavour roll-outs in the U.S., and continued Modern Oral momentum in APMEA. The narrowed guidance to the middle of the 5-8% range suggests a slight tempering versus the upper end. The active buyback programme (new tranche through 12 Oct) provides a floor. Look for the next quarterly trading update for volume and revenue trajectory.
Price Chart
Executive Summary
BAT reported H1 2026 results in line with expectations: reported revenue up 1.4% to £12,235m, adjusted diluted EPS up 7.9% at constant FX (as adjusted for Canada). New Categories revenue accelerated 18.0% driven by Modern Oral (+65.9%). FY26 adjusted EPS guidance narrowed to the middle of the 5-8% range. The ongoing £1.3bn buyback and a new buyback tranche through October support capital returns. Mixed regional performance with U.S. strength (+8.5%) offset by APMEA weakness (-6.3%).
Key Facts
- H1 reported revenue of £12,235m, +1.4% YoY (+2.9% constant FX)
- Reported diluted EPS 145.3p, down 28.6% versus prior year (prior year included large ITC gains)
- Adjusted diluted EPS (constant FX, adjusted for Canada) up 7.9% to 167.8p
- New Categories revenue +18.0% constant FX, driven by Modern Oral +65.9%
- FY26 adjusted diluted EPS guidance narrowed to middle of 5-8% range (previously the range itself)
- Share buyback on track for £1.3 billion in 2026; new buyback tranche with Goldman Sachs through 12 Oct 2026
- Free cash flow before dividends £2,285m, +85.2% YoY
- Net debt £32,555m; adjusted net leverage expected within 2.0-2.5x by year-end
- APMEA revenue down 6.3% constant FX due to regulatory and illicit trade headwinds
- U.S. revenue +8.5% constant FX, benefiting from Modern Oral and Vapour growth
Financial Impact
H1 revenue £12,235m (+1.4%), adjusted diluted EPS 167.8p (+7.9% constant FX, Canada-adjusted); FY26 guidance for mid-range 5-8% EPS growth implies ~348-356p full-year
Risk Factors
- APMEA revenue declines due to regulatory challenges and illicit trade in Bangladesh, Australia, and Vietnam
- Combustibles volume decline of 4.6% and U.S. value share erosion
- Translational FX headwind of 2-3% on adjusted EPS guidance
- Canadian litigation settlement payments (85% of Canada ex-New Category net income)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 13 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0000950157-26-000830 |
| Exhibit: ex99-3.htm | 0000950157-26-000830 |
| Exhibit: ex99-4.htm | 0000950157-26-000830 |
| Exhibit: ex99-5.htm | 0000950157-26-000830 |
| Exhibit: ex99-6.htm | 0000950157-26-000830 |
| Exhibit: ex99-7.htm | 0000950157-26-000830 |
| Exhibit: ex99-2.htm | 0000950157-26-000830 |
| Exhibit: ex99-9.htm | 0000950157-26-000830 |
| Exhibit: ex99-1.htm | 0000950157-26-000830 |
| Document: form6-k.htm | 0000950157-26-000830 |
| Document: 0000950157-26-000830-index-headers.html | 0000950157-26-000830 |
| Document: 0000950157-26-000830-index.html | 0000950157-26-000830 |
| Document: 0000950157-26-000830.txt | 0000950157-26-000830 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | 6-K | $59.48 | awaiting T+20 | — | $59.83 (+0.59%) |
Oct 20, 2026 7d ago | 6-K | $59.11 | awaiting T+20 | — | $59.83 (+1.22%) |
Oct 15, 2026 12d ago | 6-K | $58.00 | awaiting T+20 | — | $59.83 (+3.16%) |
Oct 12, 2026 15d ago | Institutional Cluster | $55.62 | awaiting T+20 | — | $59.83 (+7.57%) |
Oct 9, 2026 18d ago | 6-K | $55.50 | awaiting T+20 | — | $59.83 (+7.80%) |
Oct 7, 2026 20d ago | 6-K | $53.90 | awaiting T+20 | — | $59.83 (+11.00%) |
Oct 2, 2026 25d ago | 6-K | $52.64 | awaiting T+20 | — | $59.83 (+13.66%) |
Oct 1, 2026 26d ago | 6-K | $52.36 | awaiting T+20 | — | $59.83 (+14.28%) |
Sep 29, 2026 28d ago | 6-K | $53.99 $60.01 | ▲ +11.15% | ▲ +10.49% | $59.83 (+10.82%) |
Sep 9, 2026 6w ago | 6-K | $54.33 $53.90 | ▼ −0.79% | ▼ −2.74% | $59.83 (+10.12%) |
US Market Status
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