London, Jan 12, 2026, 09:25 GMT — Regular session.
British American Tobacco p.l.c. BATS.L saw its shares tick up in early London trade Monday following an announcement of further share buybacks. The stock climbed roughly 1.2% to 4,110 pence by 0925 GMT, fluctuating between 4,094p and 4,134p ahead of that.
The filing matters now as BAT navigates a busy reporting period, with investors increasingly focused on cash returns to anchor major consumer stocks. Buybacks often prop up shares amid broader market volatility.
A buyback occurs when a company purchases its own shares, reducing the total share count. This can boost earnings per share, but it doesn’t address weak demand or stricter regulations. Investors still need evidence that BAT’s newer nicotine products can take on a bigger role.
On Jan. 9, BAT purchased 132,817 ordinary shares from UBS AG London Branch, paying between 3,984p and 4,052p per share. The volume-weighted average price came to 4,015.1220p. The company plans to cancel these shares, which will leave 2,178,640,813 shares outstanding, excluding treasury stock, according to the announcement.
BAT’s investor site notes that shares bought through the programme are cancelled, a standard move that gradually cuts the total shares outstanding.
In a Dec. 9 pre-close trading update, BAT expressed confidence in meeting its mid-term growth targets starting 2026, though it expects performance that year to be at the lower end of the range. CEO Tadeu Marroco said he was “pleased to announce” the buyback programme is now boosted to £1.3 billion for 2026. BAT
According to its financial calendar, BAT plans to release its full-year 2025 results on Feb. 12.
The report will serve as a key checkpoint on cash flow, leverage, and the group’s ability to sustain buybacks and dividends without overextending the balance sheet. Investors are also looking for a clear update on how “New Categories” like vaping, heated products, and nicotine pouches are performing heading into 2026.
Tobacco stocks are frequently seen as yield plays, with BAT often measured against rivals like Imperial Brands and Philip Morris International in terms of pricing power and how fast they’re moving away from cigarettes. The sector’s trajectory is largely the same; it’s the execution that sets companies apart.
But buybacks won’t act as a safeguard. A sudden shift in regulation, tax changes in major markets, or slower gains in new products could still derail forecasts and push investors to focus on growth fundamentals instead of capital returns.
