British American Tobacco Reports 2025 Results and Issues 2026 Guidance

British American Tobacco released its preliminary financial results for the year ending 31 December 2025, providing updated performance figures and guidance for the coming year.

The company stated that it expects its 2026 performance to be at the lower end of its previously announced mid-term guidance ranges. This guidance covers revenue growth, adjusted profit from operations, and adjusted diluted earnings per share.

For 2025, the company reported a 1.0% decrease in revenue, but noted a 2.1% increase when measured at constant exchange rates. Adjusted profit from operations rose by 2.3%, and adjusted diluted earnings per share increased by 3.4% during the same period.

British American Tobacco’s U.S. business recorded growth, with combustibles and Velo Plus contributing to the results. The company stated that Velo Plus achieved triple-digit revenue growth in the United States.

What the numbers show

• 2025 reported revenue fell by 1.0%, but constant currency revenue rose by 2.1%
• Adjusted profit from operations for 2025 grew by 2.3%
• New Categories revenue increased 7.0% for the full year 2025
• Mid-term guidance includes 3-5% revenue growth and 4-6% adjusted profit growth

The company’s New Categories segment saw revenue growth accelerate to double digits in the second half of 2025, resulting in a 7.0% increase for the full year. This segment includes products outside traditional tobacco offerings.

According to the company’s published guidance, the expected 2026 performance is forecast to be at the lower end of the mid-term algorithm, which sets targets of 3-5% revenue growth, 4-6% growth in adjusted profit from operations, and 5-8% growth in adjusted diluted earnings per share.

British American Tobacco announced a £1.3 billion share buy-back programme for 2026 as part of its ongoing capital allocation strategy. This programme is scheduled to be implemented during the year.

Investing.com reported that the company expects around 2% growth in both revenue and adjusted profit for 2026. The company also projected that New Category revenue growth would accelerate to double digits in the second half of the year.

* This article is based on publicly available information at the time of writing.