British American Tobacco 'firmly' on track to deliver 2026 guidance

British American Tobacco PLC said on Tuesday it is firmly on track to meet its annual guidance, as growth in the US continued and its new category business gained momentum.

The London-based cigarette and nicotine product maker also indicated that it is closely monitoring developments in the Middle East.

‘While there is no significant impact on the group at this time, the broader macroeconomic and geopolitical backdrop is dynamic, increasing the risk of volatility in consumer sentiment should uncertainty persist,’ BAT said.

But BAT Chief Executive Officer Tadeu Marroco said he is ‘pleased’ that the group’s full-year delivery remains ‘firmly on track’.

‘We are continuing to drive good momentum, and are confident in our ability to sustainably deliver our mid-term algorithm and strong cash returns for shareholders,’ Marroco said.

In new categories, BAT expects mid-teens revenue growth in the first half and full year 2026, compared with the previously estimated low double-digit growth.

The group expects strong US revenue and profit growth, driven by combustibles, modern oral and vapour.

BAT expects its group revenue to rise by between 3% and 5% for 2026. For 2025, revenue was down 0.9% to £25.61 billion from £25.87 billion. It expects adjusted profit from operations to grow by between 4% and 6%.

For the global cigarette industry as a whole, BAT expects volumes to decline by 2.5%, worse than the previously forecast 2%.

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