Imperial Brands (IMB) Trading update summary

FY26 outlook

• On track across FY26 metrics: tobacco net revenue growth, adjusted operating profit growth within 3%–5%, and high-single-digit adjusted EPS growth; growth rates at constant currency.

• Tobacco net revenue expected to grow at a low-single-digit rate for a sixth consecutive year, on pricing and share gains in the US and Germany, partly offset by low-single-digit Group volume declines.

• Free cash flow expected to exceed £2.2bn, with strong adjusted operating cash conversion; FX translation expected to add ~0%–0.5% to net revenue and adjusted operating profit and reduce EPS by ~0%–0.5%.

• FY26 net debt/EBITDA leverage expected at the lower end of the 2.0–2.5 range.

Tobacco and next-generation products

• NGP net revenue expected to grow at a double-digit rate, with share gains in all three categories.

• Heated tobacco momentum from Pulze 3.0 and new iD sticks; blu kit range performing well in vape; modern oral portfolio includes Zone, Skruf, Black Buffalo and Helwit.

Capital returns

• Completed the FY26 £1.45bn share repurchase and announced a £1.5bn FY27 buyback, expected to finish by 29 October 2027; ongoing buybacks complement the progressive dividend.

• Returned close to £13bn through dividends and buybacks over FY21–FY26; issued share capital reduced by more than 21% since the buyback programme began in October 2022.