Imperial Brands Kicks Off £1.5 Billion Buyback as Outlook Holds Firm
Published on 10/08/2026 at 19:40 | Editorial boerse-global.de
Imperial Brands has launched a fresh share repurchase programme worth up to £1.5 billion for fiscal 2027, pairing the capital return with a trading update that reaffirmed its full-year guidance. The dual announcement lifted the stock 4.7% to EUR 30.91 on Thursday, according to Reuters, pushing the shares back above their 50-day moving average of EUR 29.89.
The Bristol-based tobacco group wasted no time getting started. A first tranche of up to £750 million began the same day, with HSBC mandated to conduct purchases on the open market under an independent arrangement. That initial phase is scheduled to wrap up no later than May 4, 2027, while the broader framework runs until the end of October 2027. Every share bought under the programme will be cancelled.
A Buyback Machine That Keeps Rolling
The new authorisation picks up where the previous one left off. Imperial Brands closed out its earlier £1.45 billion programme this week, having repurchased and retired just over 50.1 million shares through that effort. A separate filing confirmed the acquisition of a further 210,000 ordinary shares for cancellation.
The cumulative effect has been substantial. Since continuous buybacks began in October 2022, the company has trimmed its issued share capital by more than 21%, a reduction that flatters earnings per share on a mechanical basis.
Should investors sell immediately? Or is it worth buying Imperial Brands?
As of the September 30, 2026 reference date, issued share capital stood at 817,823,776 ordinary shares, of which 58,089,137 were held in treasury. That left 759,734,639 shares carrying voting rights.
Balance Sheet Leaves Room to Spend
Management retains ample firepower for further distributions. The ratio of net debt to earnings before interest, taxes, depreciation and amortisation has been running at the lower end of the targeted 2.0 to 2.5 range.
The trading update offered its own reassurances. Net revenue from traditional tobacco products is expected to grow in the low single digits for fiscal 2026, while next-generation products are forecast to deliver double-digit percentage growth. That newer business is absorbing much of the ongoing decline in conventional cigarette volumes.
Adjusted operating profit should land within the guided 3% to 5% corridor, with adjusted earnings per share climbing at a high single-digit rate. Free cash flow is projected to exceed £2.2 billion. Looking further out, Imperial Brands is targeting at least £320 million in cost savings by 2030 through an additional efficiency drive.
Imperial Brands at a turning point? This analysis reveals what investors need to know now.
Full financial results for fiscal 2026 are due on November 17.
Analyst Backing Adds to the Momentum
Barclays analyst Pallav Mittal reiterated an overweight rating on the stock on Wednesday, setting a price target of £34.00. The combination of steady cash returns and operational stability in the core business has given investors some relief after a stretch of uncertainty.
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