British American Tobacco

BTI

Market cap $125B

British American Tobacco (BTI) reaffirms 2026 guidance, targeting 3–5% revenue and 5–8% adjusted EPS growth. BTI's capital allocation strategy includes a £1.3bn buyback for FY26 and progressive dividends, implying a 7.16% combined yield already. Deleveraging will continue, with net debt reduction expected to add a 3.41% yield, pushing total shareholder yield above 10%.

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British American Tobacco is positioned for growth through its smokeless transformation, notably with VELO's rapid US market share gains. BTI maintains robust cash flow conversion, supports a 5.4% dividend yield, and is expanding its share buyback program to £1.3B for FY2026. Despite legacy cigarette volume declines, BTI leverages pricing power and premium brands to sustain revenue and fund new category expansion.

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FTSE 100-listed tobacco giants British American Tobacco PLC (LSE:BATS) and Imperial Brands PLC (LSE:IMB) slumped as North American cannabis stocks surged on reports that President Trump is considering easing restrictions on the sale of marijuana.  Trump may sign an executive order to reschedule marijuana at the federal level, potentially moving it from highly restricted Schedule I (which also includes drugs like heroin, LSD and ecstasy) to Schedule III, where drugs are recognized to have medical use and a moderate to low potential for abuse.

I anchor my bull thesis on British American Tobacco's third FY25 revenue upgrade, 95% cash-flow conversion, planned 2.0–2.5x leverage, and an increased £1.3bn 2026 buyback despite deleveraging. H1 2025 US revenue grew 3.7% despite a 7.6% combustibles volume decline, with pricing lifting combustibles revenue 11.4% and Velo Plus lifting the modern oral segment. I also see vapour and heated products as headwinds. Vuse revenue faces a high-single-digit FY25 decline, glo revenue is flat, and heated share is down 1.2 ppt.

Investors with an interest in Tobacco stocks have likely encountered both Universal Corp. (UVV) and British American Tobacco (BTI). But which of these two stocks offers value investors a better bang for their buck right now?

European Union officials have held multiple, undisclosed meetings with the tobacco industry, which uses political connections to try to influence policy in the bloc and beyond, a report by campaign groups published on Wednesday found.

British American Tobacco p.l.c. (BTI) Discusses Full Year Pre-Close Update With Focus on New Category Growth and US Market Momentum Transcript

British American Tobacco PLC (LSE:BATS) fell 4% to 4,146p on Tuesday, leaving it at the bottom of the FTSE 100 after its latest trading update offered what one analyst described as “nearly there, but not quite”. The company said trading for 2025 was “in line”, though expectations were already modest.