Imperial Brands (IMB) H1 2026 earnings summary

Executive summary

• Delivered growth in net revenue and adjusted operating profit in H1 FY2026, with GBP 2.6 billion free cash flow over 12 months and a 4% dividend increase.

• Transformation under the Evolve 2030 strategy is progressing, targeting £320m annual cost savings by 2030 and enhanced consumer focus.

• Well-positioned to meet full-year expectations, with strong operational and financial delivery and ongoing transformation initiatives.

• Focused on sustainable value in combustibles, scaling next-generation products (NGP), and driving efficiencies.

• Adjusted EPS rose 5.3% year-over-year, supported by profit growth and share buybacks; reported EPS declined 38.1% due to one-off charges.

Financial highlights

• Tobacco & NGP net revenue up 1.8% year-over-year at constant currency to £3,730m; adjusted operating profit rose 0.6% to £1,644m.

• Adjusted EPS increased 5.3% to 127.7p; reported EPS declined 38.1% due to Delaware settlement and 2030 Strategy costs.

• Free cash flow reached £2.6bn over 12 months, with 98% cash conversion.

• Dividend per share up 4.0% to 83.36p; £1.45bn buyback commitment for FY26.

• Adjusted net debt/EBITDA stable at 2.4x.

Outlook and guidance

• Full-year guidance maintained: low single-digit tobacco and double-digit NGP net revenue growth, 3–5% adjusted operating profit growth, and at least high single-digit EPS growth.

• Free cash flow for FY26 expected at least £2.2bn after Delaware settlement and strategy costs.

• Finance charge for FY26 projected at ~£470m; tax rate expected at 23–24%.

• Foreign exchange expected to be a 0–1% headwind to revenue and profit.