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Earnings · Shareholder Returns · Tobacco · Vaping
Imperial Brands exceeded annual profit estimates, reporting a nearly 5% rise in adjusted operating profit to £3.99 billion, driven by continued higher tobacco prices and growing demand for smoking alternatives under new CEO Lukas Paravicini.
The company's adjusted operating income for the year to September 30 reached £3.99 billion, surpassing the consensus estimate of £3.98 billion and up from £3.91 billion a year prior. Imperial Brands, maker of Davidoff cigarettes and blu e-cigarettes, forecasts 3%-5% annual profit growth and a share buyback program every year until 2030, with 2026 results expected to align with this forecast.
Revenue from tobacco and newer smoking alternatives grew 4.1% to £8.32 billion in 2025. Jefferies analysts noted the combustibles business is in good shape with resilient volumes and pricing power, reinforcing the core investment case of value maximization and elevated shareholder cash returns.
Imperial's shares have risen 24% this year, outperforming the FTSE 100's 18.5% increase.
