By Aimee Look

British American Tobacco plans a 1.3 billion-pound ($1.73 billion) share buyback program next year and said it expects to meet financial targets for 2025, driven by growth in next-generation products.

The FTSE 100 tobacco group said Tuesday that it would deliver 2% organic growth in revenue and adjusted profit for its operations in 2025. In its new-category products segment, which includes its Vuse electronic cigarette range and its Velo nicotine pouches, BAT expects revenue growth to accelerate to double digits for the second half of the year.

Analysts expect BAT to report 25.54 billion pounds in revenue and 11.28 billion pounds in adjusted operating profit for 2025, or 2.1% growth for both, according to company-compiled consensus.

The cigarette and vape maker, which houses Kent, Lucky Strike and Vuse brands, said revenue and profit momentum in the U.S. has been strong, driven by results from combustible products and its Velo Plus nicotine product in particular.

"I am particularly pleased with our momentum in the U.S., the world's largest nicotine value pool," Tadeu Marroco, the company's chief executive, said.

A crackdown on illicit vapor products in the U.S. has also underpinned Vuse volume and revenue, the company said. Meanwhile, the company said it is up against regulatory headwinds in Australia and Bangladesh, hurting regional sales.

BAT said it expects midterm revenue growth in the 3% to 5% range, and adjusted profit from operations between 4% and 6%. For 2026, the company said it expects to come in at the lower end of the range.

The company previously announced a share buyback program of 900 million pounds for 2025 in February, while presenting its full year results for 2024.

Write to Aimee Look at aimee.look@wsj.com

(END) Dow Jones Newswires

December 09, 2025 03:41 ET (08:41 GMT)

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