BAT H1 2026: Smokeless Hits 19.8% of Revenue, Adjusted EPS Up 7.9%, Guidance Tightened
BTI sits 26% above its 52-week low of $49.88.
Summary
BAT's H1 2026 results show smokeless revenue reaching 19.8% of the total, with adjusted EPS up 7.9% at constant currency. Full-year EPS guidance was tightened to the middle of the 5–8% range, and net finance cost guidance was reduced.
Key Events · Earnings and Guidance · BTI
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Smokeless Revenue Reaches 19.8%
Smokeless products now account for 19.8% of Group revenue, up 1.6 percentage points from FY25, driven by Modern Oral (up 65.9% at constant currency) and a return to growth in U.S. Vapour (up 19.8%).
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Adjusted EPS Up 7.9%, Guidance Tightened
Adjusted diluted EPS rose 7.9% to 167.8p at constant currency. Full-year adjusted diluted EPS growth is now expected towards the middle of the 5–8% range, and adjusted net finance costs guidance was reduced to c.£1.65 billion.
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Fit2Win Restructuring Expanded
The operational review programme incurred an additional £228 million non-cash charge in H1. Total expected one-off costs are now ~£950 million, but annualised savings by end 2028 are raised to ~£700 million, up from £600 million.
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New CFO and DOJ Resolution
Dragos Constantinescu will join as CFO on 1 September 2026. The U.S. DOJ proceedings were dismissed with prejudice in May 2026, and the probationary period for the Singapore subsidiary expired.
Analysis · BTI · Manufacturing
BAT's H1 results underscore an accelerating transformation: smokeless products now account for nearly a fifth of revenue, with New Categories revenue up 18% on the back of a 65.9% surge in Modern Oral and a return to growth in U.S. Vapour. Adjusted diluted EPS rose 7.9% at constant currency, and management tightened full-year guidance to the middle of its 5–8% range while lowering net finance cost expectations. The strategy is clearly gaining traction, even though reported profit fell sharply due to prior-year one-offs. Meanwhile, the Fit2Win restructuring programme is expanding—total costs are now expected near £950 million, but annual savings have been raised to £700 million. A new CFO appointment and the resolution of DOJ proceedings remove key overhangs, though fresh UK securities litigation introduces a new legal risk.
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At the time of this filing, BTI was trading at $62.97 on NYSE in the Manufacturing sector, with a market capitalization of approximately $136.5B. The 52-week trading range was $49.88 to $67.30. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.