British American Tobacco Reaffirms Guidance, Announces £1.3B Share Buyback, and Completes ITC Hotels Stake Sale
Summary
British American Tobacco reaffirmed its financial outlook and announced a significant £1.3 billion share buyback for 2026, while also completing the sale of a 9% stake in ITC Hotels for £315 million to reduce debt.
Key Events
-
Reaffirms FY25/FY26 Guidance
The company is on track for approximately 2% revenue and adjusted profit growth for FY25 and reaffirms its mid-term growth algorithm for 2026, expecting performance at the lower end of the range.
-
Announces £1.3 Billion Share Buyback
A new share buyback program of up to £1.3 billion has been announced for 2026, following the completion of the 2025 program which repurchased approximately £1.1 billion in shares.
-
Completes ITC Hotels Stake Sale
British American Tobacco completed the block trade of 187,500,000 ordinary shares, representing a 9% stake in ITC Hotels Limited, generating net proceeds of approximately £315 million for deleveraging.
Analysis
British American Tobacco delivered a positive trading update, reaffirming its financial guidance for both the current and upcoming fiscal years. The announcement of a substantial £1.3 billion share buyback program for 2026 signals a strong commitment to shareholder returns and disciplined capital allocation. Furthermore, the successful sale of a 9% stake in ITC Hotels Limited for approximately £315 million will significantly contribute to the company's deleveraging targets, enhancing its financial stability.
At the time of this filing, BTI was trading at $56.58 on NYSE in the Manufacturing sector, with a market capitalization of approximately $123.3B. The 52-week trading range was $34.82 to $59.29. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.