Imperial Brands has confirmed in its pre-close trading update for FY26 (ended September 30, 2026) that it remains on track to deliver full-year guidance across all key operational and financial metrics. This performance continues to be supported by sustainable growth in traditional combustible tobacco, driven by robust pricing power, alongside accelerating momentum in Next Generation Products (NGP).
Financial Outlook & Key Guidance Summary
| Performance Metric | Guidance / FY26 Target | Operational Drivers |
| Group Adjusted Operating Profit | 3% to 5% growth (c.c.) | Core tobacco model profitability and scale in NGP. |
| Adjusted EPS | High-single-digit growth (c.c.) | Operating profit growth combined with share buyback accretion. |
| Free Cash Flow | > £2.2 Billion | Underpinned by robust adjusted operating cash conversion. |
| Net Debt / EBITDA Leverage | Lower end of 2.0x – 2.5x range | Maintains strong balance sheet discipline. |
| Weighted Avg Share Count | 780.9 Million shares | Reflects ongoing reduction in share count. |
In its core tobacco business, Imperial Brands achieved its sixth consecutive year of net revenue growth. Net revenue in tobacco expanded by low-single digits, primarily propelled by robust pricing actions and strategic market share gains in priority target segments, notably within the United States and Germany. These pricing power and market share gains successfully offset low-single-digit volume declines across the broader Group.
Concurrently, the Next Generation Products portfolio delivered double-digit net revenue growth, accompanied by category share gains across all three NGP segments. In heated tobacco, growth was driven by the commercial rollout of the Pulze 3.0 device and new iD consumable stick ranges. The vape category saw continued strong performance from the blu kit product range. In modern oral, existing growth brands such as Zone and Skruf were further enhanced by strategic acquisitions, including Black Buffalo in the United States and Helwit in Sweden.
Imperial Brands continues to execute a disciplined capital allocation framework aimed at delivering substantial shareholder value. Following the completion of the £1.45 billion share buyback announced in October 2025, the company announced a new £1.5 billion share repurchase program for FY27, which is scheduled for completion no later than October 29, 2027. This evergreen buyback strategy operates alongside the company’s progressive dividend policy. Over the six-year period from FY21 to FY26, Imperial Brands has returned approximately £13 billion in cumulative capital to shareholders through dividends and share buybacks combined, reducing its total issued share capital by more than 21% since October 2022. Net debt to EBITDA leverage for FY26 is expected to remain at the lower end of the targeted 2.0x to 2.5x range.
The group continues to advance its strategic transformation toward becoming a more consumer-centric, data-led, agile, and efficient enterprise. Imperial Brands remains confident in achieving at least £320 million in structural cost savings by 2030. Key manufacturing initiatives executed during FY26 provide the foundation for a targeted £100 million reduction in overhead costs. These transformation efforts are further supported by ongoing investments in consumer capabilities, data, and technology systems.
Imperial Brands will officially release its FY26 Annual Results on November 17, 2026.
Download Imperial Brands – H1 2026 Trading Update statement
