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BTI

British American Tobacco p.l.c.

BTI

British American Tobacco p.l.c. • NYSE
$58.66 ▲ 1.47% (+0.85)
Market Cap $128.71 B
52w High $59.29
52w Low $34.82
Dividend Yield 2.98%
P/E 31.88
Volume 2.25M
Outstanding Shares 2.19B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $12.069B ▼ $5.019B ▼ $4.512B ▲ 37.385% ▲ $2.05 ▲ $6.194B ▲
Q4-2024 $13.527B ▲ $12.777B ▲ $-1.424B ▼ -10.527% ▼ $-0.66 ▼ $1.855B ▼
Q2-2024 $12.34B ▼ $5.918B ▼ $4.492B ▲ 36.402% ▲ $2 ▲ $5.882B ▼
Q4-2023 $13.842B ▲ $32.881B ▲ $-18.326B ▼ -132.394% ▼ $-8.23 ▼ $6.751B ▲
Q2-2023 $13.441B $5.262B $3.959B 29.455% $1.77 $6.418B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $4.893B ▼ $110.226B ▼ $63.049B ▼ $46.874B ▼
Q4-2024 $5.81B ▼ $118.899B ▼ $68.904B ▲ $49.643B ▼
Q2-2024 $6.63B ▲ $119.369B ▲ $64.9B ▼ $54.111B ▲
Q4-2023 $2.964B ▼ $118.716B ▼ $65.782B ▼ $52.566B ▼
Q2-2023 $4.132B $146.072B $73.444B $72.298B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $4.512B ▲ $2.309B ▼ $1.012B ▲ $-4.117B ▲ $4.164B ▲ $2.206B ▼
Q4-2024 $-1.424B ▼ $3.48B ▲ $-58M ▼ $-7.274B ▼ $-830M ▼ $6.468B ▲
Q2-2024 $4.492B ▲ $3.165B ▼ $2.698B ▲ $-3.358B ▲ $5.694B ▲ $3.049B ▼
Q4-2023 $-14.189B ▼ $7.339B ▲ $-337M ▼ $-6.291B ▼ $978M ▲ $6.989B ▲
Q2-2023 $3.959B $3.375B $41M $-3.023B $235M $3.265B

Five-Year Company Overview

Income Statement

Income Statement BTI’s sales over the past five years have been broadly stable, edging down slightly more recently as cigarette volumes decline and pricing does more of the work. Profitability at the gross margin level remains strong, which shows the core tobacco business is still very profitable. The standout item is a very large accounting hit in 2023 that pushed operating profit and net income deep into negative territory for that year; this looks more like a one-off write‑down than a structural collapse in the business. Results bounced back to solid profitability in 2024, although underlying operating earnings now sit below the highs of a few years ago, reflecting both the cost of the strategic transition and ongoing pressure on the traditional cigarette franchise.

Balance Sheet

Balance Sheet The balance sheet shows a large, asset‑heavy group with meaningful but gradually declining debt and a solid equity cushion. Total assets stepped down after 2022, most likely as a result of impairments or portfolio clean‑up, but have since stabilized. Debt remains high in absolute terms, yet it has been trimmed over time, suggesting a slow but deliberate deleveraging effort. Cash balances move around year to year but remain modest compared with total debt, so the company still leans heavily on its strong and steady cash generation rather than on large cash hoards for safety. Overall, the balance sheet looks acceptable for a mature, cash‑rich tobacco group, but it is not ultra‑conservative.

Cash Flow

Cash Flow Cash generation is a major strength. Operating cash flow has been consistently robust and fairly steady across the period, even in the year when reported earnings were hit by the big charge. After relatively modest spending on capital projects, free cash flow remains very strong and reliable. This indicates that the business converts a large share of its accounting profits into actual cash, giving it room to service debt, pay dividends, and fund its push into reduced‑risk products. The pattern here is of a classic cash‑cow business: low reinvestment needs, high and stable free cash flow, but with the long‑term challenge of replacing a declining legacy category.

Competitive Edge

Competitive Edge BTI benefits from a powerful competitive position built over decades. Its well‑known cigarette brands and wide global presence give it pricing power and a very sticky customer base, even as overall smoking rates decline in many markets. The company’s scale across manufacturing, procurement, and distribution keeps its costs low and makes it difficult for smaller rivals to compete. On top of this, BTI has built strong positions in key next‑generation categories like vaping, heated tobacco, and modern oral nicotine, often ranking among the top players globally and in the U.S. That said, the competitive landscape in these newer categories is intense, with rapid product cycles, shifting consumer tastes, and aggressive rivals, especially in pouches and disposable vapes. Regulation, litigation, and ongoing declines in combustible volumes remain ever‑present headwinds, even with a strong moat.

Innovation and R&D

Innovation and R&D BTI is clearly investing to pivot from a traditional cigarette company toward a broader nicotine and potentially “beyond nicotine” platform. Its multi‑category approach—vapes (Vuse), heated products (Glo), and oral pouches (Velo)—gives it several shots on goal instead of relying on a single technology. The company has put real money into R&D, new labs, and device and formulation technology, which has already helped Vuse and Velo gain ground in some key markets. This innovation effort is not without risk: it is costly, the regulatory rules for newer products are still evolving, and it is uncertain how quickly and profitably smokers will migrate. Still, compared with many peers, BTI appears committed, well‑resourced, and relatively advanced in building a science‑driven pipeline and brand ecosystem around reduced‑risk products.

Summary

Overall, BTI looks like a mature, cash‑rich tobacco company in the middle of a difficult but necessary transition. The legacy cigarette business still throws off strong margins and reliable cash flow, but reported earnings have been noisy because of large write‑downs and the reshaping of the portfolio. The balance sheet carries meaningful debt yet remains manageable thanks to the strength of cash generation. Strategically, BTI enjoys a deep moat in its traditional brands and distribution and is leveraging that position to push hard into vaping, heated tobacco, and oral nicotine, backed by real R&D investment. The key opportunity is to replace declining combustible revenues with a growing, more sustainable smokeless portfolio; the key risks lie in regulation, execution in new categories, competition from other global players, and the pace at which consumers actually switch. The story is less about rapid growth and more about whether BTI can successfully and safely evolve a very profitable but structurally challenged business model over the next decade.