TLDRs:
- BAT repurchases 145,000 shares, signaling continued focus on shareholder capital returns.
- Dividend schedule remains visible, with February 2026 payout attracting investor attention.
- 2026 guidance expected at lower end due to U.S. vaping market challenges.
- Regulatory and illicit product pressures continue shaping BAT’s smokeless product growth strategy.
British American Tobacco p.l.c. (BATS.L / BTI) maintained steady share levels on December 17, 2025, following the disclosure of another daily share repurchase.
London-listed BAT shares traded around 4,283p, slightly above session lows, while U.S. ADRs (NYSE: BTI) hovered in the mid-to-high $50s range. The company’s share repurchase activity highlights its continued commitment to returning capital to shareholders, even as it navigates regulatory pressures and market dynamics in the smokeless and vaping segments.
British American Tobacco p.l.c., BTI
Daily Buyback Signals Capital Discipline
On December 16, BAT executed a repurchase of 145,000 ordinary shares, purchased through Goldman Sachs International at a volume-weighted average price of 4,297.83p. These shares are intended to be cancelled, effectively reducing the company’s outstanding share count.
While a single-day buyback rarely shifts long-term investor sentiment, the ongoing repurchase program serves as a clear signal that BAT is prioritizing shareholder returns alongside its operational strategy. The company has also announced plans for a £1.3 billion buyback in FY2026, underscoring a disciplined approach to capital allocation.
Dividend Schedule Maintains Investor Confidence
Dividend payments remain a central part of BAT’s shareholder strategy. U.S. ADR holders have a record date of December 30, 2025, with a pay date set for February 9, 2026. The gross amount per ADR is approximately $0.749068. For UK ordinary shares, interim dividends of 60.06p have been distributed quarterly throughout 2025, with the final installment due in February 2026.
This transparent dividend schedule helps reinforce the stock’s appeal to income-focused investors, complementing ongoing buyback efforts.
2026 Guidance Points to Caution
BAT’s early December pre-close trading update offered guidance for FY2026, suggesting revenue growth of 3–5%, adjusted operating profit growth of 4–6%, and EPS growth of 5–8%. Importantly, management flagged that actual performance is likely to land at the lower end of these ranges, primarily due to persistent challenges in the U.S. vaping market.
Illicit and unregulated disposable products continue to disrupt pricing and market share, affecting BAT’s regulated brands, including Vuse.
Regulatory and Market Pressures Remain Key
Investors are closely monitoring how regulatory enforcement evolves in the U.S. and other key jurisdictions. BAT has been advocating for stricter controls on unauthorized vaping products, and early federal and state actions are beginning to address some of the competitive distortions.
Beyond the U.S., regulatory scrutiny in Europe, Canada, and other markets adds layers of complexity to BAT’s transition toward smokeless alternatives, which currently account for approximately 17.5% of total revenues.
Looking Ahead
The next major catalyst for BAT shares is the full-year 2025 results, scheduled for February 12, 2026. Investors will be assessing whether the company can sustain buybacks and dividends while achieving targeted leverage reduction, and whether new categories like Velo and other smokeless products continue scaling profitably.
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