British American Tobacco (BATS.L / BTI) Stock News Today: £1.3bn 2026 Buyback, U.S. Vape Headwinds, Dividends and Analyst Targets (12 December 2025)

Meta description: British American Tobacco p.l.c. is in focus on 12 December 2025 after a busy week of updates: continued daily buybacks, a fresh £1.3bn extension for 2026, a pre-close trading update that kept FY2025 guidance intact but flagged FY2026 at the lower end of targets, plus an India divestment tied to debt reduction. Here’s the latest news, forecasts, and market analysis.

Published: 12 December 2025

British American Tobacco p.l.c. (BAT) — ticker BATS in London (FTSE 100) and BTI as a U.S. ADR — is ending the week with investors weighing two competing narratives: bigger shareholder returns via an extended buyback, and tougher near-term growth dynamics in the U.S. vapour market due to illicit competition.

The result is a stock that still screens as a classic “income + buyback” story, but one where the next leg up may depend less on cigarettes pricing power — and more on how quickly BAT can translate improved enforcement against illicit vapes into sustainable growth for Vuse and other “New Category” products. ^[1]

Key takeaways for BAT investors on 12 December 2025

Daily buybacks continue: BAT disclosed another “transaction in own shares” today, buying 132,000 shares (purchased 11 December) at a volume-weighted average price of 4,378p, with shares intended to be cancelled. ^[2]
Buyback extended for 2026: An RNS this week confirmed a £1.3bn extension to the buyback programme for 2026, with UBS appointed for a tranche expected to run 2 January to 11 February 2026 (around BAT’s closed period). ^[3]
Guidance vs. headwinds: BAT said it’s on track for FY2025, while expecting FY2026 performance to land at the lower end of its mid-term ranges, largely due to U.S. vapour pressure from illicit products. ^[4]
Debt reduction supported by divestments: BAT sold part of its stake in ITC Hotels in India (after signalling a larger sale), consistent with its stated focus on reducing leverage and exiting non-strategic assets. ^[5]
Governance update: BAT also announced a Board committee change (Audit Committee). ^[6]

BATS share price and BTI ADR snapshot (12 December 2025)

In London, British American Tobacco shares were indicated around 4,318p (~£43.18) at the close on 12 December 2025, down about 1.5% on the session, according to Hargreaves Lansdown’s end-of-day data (which also lists a market cap near £93.9bn and a trailing dividend yield around 5.45%). ^[7]

In the U.S., the BTI ADR last traded around $58.37.

Context matters: the stock has been strong over the past year — data published mid-week put the 12‑month move around +46%. ^[8]

All the current BAT RNS headlines around 12 December 2025

BAT has been unusually “news-heavy” in early December — partly because buybacks generate frequent regulatory notices. An Investegate summary of BAT’s RNS flow shows the core items investors have been tracking into today: transactions in own shares, the 2025 H2 pre-close trading update, the share buyback programme extension, ITC Hotels block-trade updates, plus governance and director-related notices. ^[9]

Highlights from that list include:

12 Dec 2025: Transaction in Own Shares; Committee Change ^[10]
10 Dec 2025: Share Buyback Programme (extension) ^[11]
9 Dec 2025: 2025 H2 Pre‑Close Trading Update ^[12]
4–5 Dec 2025: ITC Hotels block-trade items; Director/PDMR Shareholding notices ^[13]

If you follow BAT, this clustering of announcements is important because it explains why “BAT news” is dominating feeds: much of it is programme execution (buybacks) rather than a sudden change to the underlying business.

The main market catalyst: BAT’s FY2025 update and FY2026 “lower end” outlook

The key fundamental update this week was BAT’s full-year pre-close trading update, which carried two messages that can pull the stock in opposite directions:

FY2025 remains on track. BAT signalled it expects around 2% growth in revenue and adjusted profit from operations (constant currency), with “New Category” revenue growth accelerating in the second half. ^[14]
FY2026 may come in at the lower end of BAT’s mid-term targets. Reuters reported BAT expects FY2026 revenue growth at the lower end of 3%–5%, and adjusted profit growth at the lower end of 4%–6%, citing the ongoing hit from illicit vapour products and intense competition in the U.S. vaping market. ^[15]

That “lower end” phrasing mattered to investors. BAT shares fell sharply on 9 December after the update (Reuters described an early move of nearly -5%). ^[16]

Why the U.S. vape market is still the swing factor

BAT has argued that enforcement action against illicit vaping products is beginning to help — Reuters reported BAT said early signs of such enforcement were improving momentum in the U.S., particularly for Vuse, though illicit proliferation remains a major drag. ^[17]

From a stock perspective, this matters because “New Categories” (vapour, heated products, modern oral) are widely seen as the path to offsetting structural declines in combustible volumes over time. When investors worry that U.S. vapour economics are worsening, the market tends to question the speed and profitability of BAT’s transition.

Buybacks: the story that keeps resurfacing — for good reason

Today’s buyback disclosure (12 December 2025)

In today’s “Transaction in Own Shares” notice, BAT disclosed it bought 132,000 shares (purchase date 11 December) at prices between 4,358p and 4,404p, with a 4,378p volume-weighted average price, and intends to cancel the shares. ^[18]

Share cancellation matters because it can mechanically support EPS over time (all else equal), and it’s also a signal that management sees buybacks as a preferred use of capital alongside dividends and deleveraging.

The 2026 buyback extension: £1.3bn and a defined timetable

BAT also confirmed this week it is extending its share buyback programme by up to £1.3bn for 2026. The RNS states BAT entered an irrevocable agreement with UBS to run the next tranche, expected to be completed during the closed period starting 2 January 2026 and ending 11 February 2026, ahead of BAT’s full-year results. ^[19]

For investors, that structure is notable because:

It provides visibility on timing (helpful for modelling share count).
It can reduce the “headline risk” of buybacks being paused, especially around results periods.
It reinforces BAT’s capital-allocation stance: dividend + buybacks + debt reduction, not just one lever.

Where the programme came from

BAT’s original March 2024 announcement described a £1.60bn buyback programme funded by proceeds from selling part of its stake in ITC Limited, with tranches allocated across 2024 and 2025. ^[20]

The new extension for 2026 effectively continues that framework.

India divestment: ITC Hotels stake sale and debt reduction

Another meaningful stock driver has been BAT’s steady exit from non-strategic India holdings:

On 4 December 2025, BAT said it intended to sell between 7% and all of its 15.3% stake in ITC Hotels via an accelerated bookbuild, describing the holding as non-strategic and tied to its broader debt-reduction effort. ^[21]
On 5 December 2025, Reuters reported BAT sold a 9% stake in ITC Hotels for about 38 billion rupees (~$425m), reducing its ownership to 6.3%. ^[22]

Why equity investors care: proceeds from divestments can help BAT lower leverage (supporting credit metrics) while still funding dividends and buybacks — a combination that tends to be attractive to income-focused shareholders.

Dividend outlook: what BAT has already declared

BAT’s dividend narrative remains central to the stock’s appeal.

BAT’s dividend page notes that it declared an interim dividend for the year ended 31 December 2024 of 240.24p per share, payable in four equal quarterly instalments of 60.06p across May, August, November 2025 and February 2026. It also lists key dates such as LSE ex‑dividend timing and payment dates (including 4 February 2026 for the LSE/JSE payment date and 9 February 2026 for the NYSE ADS payment date, per the schedule shown). ^[23]

For BAT stock holders, the dividend calendar is especially relevant because buyback tranches and closed periods can overlap with dividend timing and FY results season.

Board and governance: committee change announced today

On 12 December 2025, BAT announced that Holly Keller Koeppel will step down from the Audit Committee effective 31 December 2025, and it published the updated committee membership structure effective that date. ^[24]

This isn’t typically a price-moving event on its own, but it’s part of the week’s broader governance/news flow alongside buyback-related disclosures.

Analyst forecasts and targets: supportive, but not one-way traffic

Company/Street expectations for FY2025

Reuters reported that analysts (in a company-compiled poll referenced in its coverage) expected total revenue growth of around 2.1% for 2025 — broadly aligned with BAT’s reiterated FY2025 outlook. ^[25]

Price targets: examples of “bull case” assumptions

A notable UK broker update cited this month came from Citi, which (per a Sharecast/Halifax market note) reiterated a Buy stance and raised its target price to £48.50, arguing there is “material scope” for outperformance versus consensus and that FY2026 could surprise on the upside. ^[26]

With the London share price around £43.18 (4,318p) at the latest close, a £48.50 target implies roughly 12% upside — before dividends (purely arithmetic, not a prediction). ^[27]

A valuation “anchor” many investors watch

In a December 2025 note, Morningstar said it raised its fair value estimate for British American Tobacco to 4,350 GBX (and $58 for the ADR), pointing to a rebounding U.S. business. ^[28]

At ~4,318p, that fair-value figure is only modestly higher, signalling a more “fully valued” view versus more optimistic broker targets. ^[29]

Risks and pressure points investors are watching

Even after a strong 12‑month run, BAT remains a stock where risk assessment can dominate the debate:

Illicit vapour competition and regulation (U.S.)
BAT itself has pointed to illicit proliferation as a headwind for the vapour category, even as it sees early signs of improvement from enforcement. ^[30]
Regulatory/reputational scrutiny in Europe
A Reuters report this week said campaigners argued tobacco industry links with EU officials were underreported, naming major tobacco companies and describing multiple meetings in 2023–2024. While this doesn’t directly change BAT’s earnings tomorrow, it can influence political risk premia and ESG positioning. ^[31]
Litigation and settlement exposure
Like peers, BAT operates under ongoing litigation and regulatory risk in multiple jurisdictions. Investors typically price these risks through valuation multiples and credit spreads rather than day-to-day headlines.
FX and emerging-market sensitivity
BAT’s global footprint means translation effects and local regulation can swing reported results (even when constant-currency performance is stable).

What to watch next for British American Tobacco stock

Looking ahead from 12 December 2025, the next near-term catalysts are unusually clear:

Buyback execution window: the next tranche is expected to run 2 Jan–11 Feb 2026. ^[32]
FY2025 results date: Alliance News/Shares reported BAT expects to release results on 12 February 2026 (the day after the tranche end). ^[33]
U.S. vapour signals: any concrete data points on enforcement against illicit products, Vuse trends, or regulatory shifts can move sentiment quickly. ^[34]
Further India divestment potential: BAT has reduced its ITC Hotels stake but still holds a position, and it has a track record of selling down ITC-linked holdings to reduce leverage. ^[35]
Dividend calendar: the final quarterly instalment of the declared 60.06p series is scheduled for early February 2026 (per BAT’s published key dates). ^[36]

Bottom line

British American Tobacco stock is finishing 12 December 2025 with a familiar investment setup — high cash returns (dividend + buybacks) and a clear deleveraging narrative — but with the market forcing a tougher question: can BAT’s “New Category” strategy regain enough traction in the U.S. vapour market to hit the higher end of its multi-year growth algorithm?

For now, BAT has chosen to reinforce confidence through capital returns (another buyback extension and continuing share cancellation), while acknowledging that FY2026 is likely to land at the lower end of its targeted ranges. That mix typically keeps income investors interested — but it also keeps growth-sensitive investors waiting for proof that U.S. vapour pressure is truly easing, not just stabilising. ^[37]