BAT flags currency headwinds in 2026, points to New Category growth

British American Tobacco PLC on Tuesday flagged foreign exchange headwinds in 2026, ahead of a capital markets day in the US.

The London-based cigarette and vaping products maker said that in 2026, based on current spot rates, it sees foreign exchange effects undercutting full-year adjusted diluted earnings per share growth by 2% to 2.5%.

The company expects to meet the lower end of revenue growth guidance, which ranges from 3% to 5%, and adjusted profit from operations growth guidance, which ranges from 4% to 6%. Adjusted diluted EPS growth is anticipated to be in the middle of the 5% to 8% target range, assuming constant exchange rates.

By the end of the year, BAT expects to be within a 2.0-2.5x target leverage range. Other guidance remains unchanged, it said.

The company will outline the targets that form part of its "Horizon 2030" strategy at the CMD in Winston-Salem, North Carolina, where its subsidiary Reynolds American is based.

BAT is eyeing a growth rate in the mid-teens for New Category revenue through to 2030, at which point it expects the New Category contribution margin to be at least 30%.

Shares in BAT were down 2.6% to 4,117.0 pence each on Tuesday morning in London.

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