Imperial Brands PLC Q2 2026 Earnings Recap

The stock gained 3.8% following the earnings report, reflecting investor approval of solid pricing-driven tobacco revenue growth and positive strategic progress, despite some one-off headwinds and below-guidance NGP revenue growth.

Key Takeaways

• Tobacco net revenue grew in low single digits, driven by strong pricing that more than offset volume declines across key regions: Europe (+6% pricing), U.S. (+5.7%), and AAACE excluding Australia (+6.1%).
• Adjusted operating profit increased modestly by 0.6%, pressured by one-offs in the U.S. and Australia and reduced profit from tobacco inventory at [La Hista].
• NGP revenue growth was below guidance due to timing of U.S. promotions, which negatively affected half 1 results by ~GBP 13 million, although underlying NGP revenue excluding these factors would have shown double-digit growth and reduced losses.
• Free cash flow remained robust at GBP 2.6 billion over 12 months, with leverage steady year-on-year at 2.4x, supporting ongoing capital returns including a 4% dividend increase and EUR 1.45 billion share buyback.
• Management reaffirmed full-year guidance and emphasized strategic transformation actions that deliver cost efficiencies and build long-term growth capabilities.