Ctrl K
Operating cash flow conversion is volatile (OCF/NI of 0.81 in 2026Q2), but FCF margin remains solid at 20.0%, with dividends and buybacks averaging $2.8B and $0.5B per quarter, respectively, often exceeding operating cash flow.
British American Tobacco p.l.c. (BTI) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 11.81B | 6.34B | 10.13B | 10.71B | 10.39B | 9.72B | 9.79B | 9B | 10.29B | 5.35B | 4.61B | 4.72B | 3.72B | 4.44B | 4.43B | 3.94B | 3.94B | 3.17B | 3.4B | 2.26B | 1.88B | 2B | 1.34B | 1.21B | 967M | 1.24B | 1.08B | 1.01B | 165M | 347M | 475M |
| Operating CF Margin % | - | 24.76% | 39.14% | 39.27% | 37.58% | 37.83% | 37.97% | 34.76% | 42.03% | 27.33% | 32.63% | 37.65% | 26.6% | 29.07% | 29.14% | 25.57% | 26.47% | 22.35% | 28.05% | 22.58% | 19.23% | 21.47% | 12.43% | 4.71% | 3917.83% | 10.86% | 9.89% | 11.19% | 2.32% | 4.85% | 6.56% |
| Operating CF Growth % | -68.57% | -37.36% | -5.5% | 3.08% | 6.97% | -0.71% | 8.78% | -12.62% | 92.54% | 15.99% | -2.33% | 27.02% | -16.23% | 0.2% | 12.42% | -0.03% | 24.06% | -6.62% | 50.31% | 20.51% | -6.24% | 49.63% | 10.85% | 24.82% | -21.7% | 14.35% | 6.4% | 515.15% | -52.45% | -26.95% | -13% |
| Net Income | 9.55B | 7.76B | 3.18B | -14.19B | 6.67B | 6.8B | 6.4B | 5.7B | 6.03B | 37.48B | 4.65B | 4.29B | 3.12B | 3.9B | 3.8B | 4.72B | 4.32B | 4.1B | 3.57B | 2.9B | 2.62B | 2.42B | 3.76B | 1.85B | 2.18M | 2.18B | 1.8B | 1.48B | 1.01B | 1.3B | 1.72B |
| Depreciation & Amortization | 4.07B | 2.55B | 3.1B | 24B | 834M | 901M | 961M | 994M | 800M | 723M | 494M | 402M | 423M | 393M | 449M | 817M | 897M | 611M | 430M | 336M | 353M | 383M | 375M | 882M | 338M | 396M | 401M | 350M | 297M | 239M | 231M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 120M | 123M | 117M | 84M | 60M | 74M | 74M | 91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 782.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -1.64B | -532M | -1.93B | 1.37B | 2.79B | 2.08B | 2B | 2.59B | 1.87B | -32.38B | 181M | 1.19B | 791M | 938M | 181M | -1.74B | -1.38B | -1.58B | -969M | -1.11B | -1.05B | -982M | -2.77B | -1.91B | 210.82M | -2.03B | -1.74B | -1.35B | -1.28B | -1.37B | -1.35B |
| Working Capital Changes | -924.58M | -3.44B | 5.78B | -469M | 103M | -62M | 429M | -416M | 1.47B | -596M | -797M | -1.23B | -687M | -873M | -1.08B | 144M | 107M | 41M | 367M | 132M | -47M | 181M | -29M | 381M | 416M | 690M | 617M | 538M | 134M | 174M | -122M |
| Change in Receivables | -398.25M | -295M | -269M | -487M | -42M | -393M | 300M | -699M | 502M | -732M | 87M | -508M | -36M | -246M | -329M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 301.69M | 112M | 35M | 265M | -246M | 433M | -144M | -371M | -192M | 1.41B | -638M | -520M | -405M | -386M | -755M | -47M | -280M | -125M | -367M | 170M | 21M | -28M | 45M | 179M | 58M | 234M | 122M | 31M | -36M | -71M | -201M |
| Change in Payables | -803.18M | 0 | 0 | 353M | 3M | 183M | 0 | 730M | 123M | -685M | 428M | 732M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 832.87M | 1.39B | 1.38B | -296M | -705M | -1.14B | -783M | -639M | -1.02B | -18.54B | -640M | -3.99B | -470M | -335M | -400M | -712M | -451M | -589M | -2.43B | -124M | -315M | -292M | 48M | -725M | -503K | -1.08B | 503M | -1.84B | 760M | -963M | -569M |
| Capital Expenditures | -1.09B | -551M | -486M | -460M | -523M | -527M | -511M | -664M | -758M | -791M | -586M | -483M | -529M | -574M | -664M | -617M | -584M | -554M | -544M | -482M | -425M | -381M | -333M | -428M | -490M | -515M | -362M | -193M | -363M | -360M | -360M |
| CapEx % of Revenue | 2.12% | 2.15% | 1.88% | 1.69% | 1.89% | 2.05% | 1.98% | 2.57% | 3.09% | 4.04% | 4.15% | 3.85% | 3.79% | 3.76% | 4.37% | 4.01% | 3.92% | 3.9% | 4.49% | 4.81% | 4.35% | 4.09% | 3.09% | 1.67% | 1985.25% | 4.53% | 3.32% | 2.13% | 5.1% | 5.03% | 4.97% |
| Acquisitions | 3.12B | 1.03B | 1.53B | 122M | -39M | -231M | 100M | -32M | 12M | -17.66B | -57M | -2.06B | 94M | -16M | 250M | -224M | 12M | -196M | -2.1B | 111M | -40M | -120M | 203M | -1.8B | 65M | -305M | 123M | -276M | 652M | -1.03B | 156M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 938.01M | 117M | 249M | 85M | -14M | -154M | -29M | -91M | -263M | -96M | 3M | -3.51B | 59M | 255M | 264M | 600M | 581M | 450M | 530M | 461M | 502M | 417M | -112M | 1.56B | 492.5M | -254M | 846M | -1.34B | 494M | 435M | -370M |
| Cash from Financing | -19.13B | -8.76B | -10.63B | -9.31B | -8.88B | -8.75B | -7.9B | -8.59B | -9.63B | 14.76B | -4.23B | -219M | -3.47B | -3.97B | -3.95B | -3.47B | -3.28B | -2.83B | 68M | -2.23B | -1.95B | -1.78B | -1.72B | 1.46B | -653M | 40M | -1.61B | 856M | -803M | 795M | 130M |
| Debt Issued (Net) | -4.5B | -295M | -2.42B | -1.64B | 223M | -3.87B | -807M | -1.39B | -3.48B | 20.11B | -364M | 4.9B | 665M | 1B | 718M | 57M | -707M | -441M | 2.79B | 11M | -340M | -136M | -378M | 2.23B | -627M | 73M | -915M | 853M | -824M | 794M | 142M |
| Equity Issued (Net) | -1.82B | -1.15B | -792M | -110M | -2.09B | -82M | -18M | -117M | -139M | -205M | -64M | -46M | -844M | -1.58B | -1.37B | -873M | -59M | -87M | -506M | -764M | -471M | -495M | -456M | -693M | 6M | 3M | -692M | 3M | 42M | 19M | 13M |
| Dividends Paid | -9.28B | -5.12B | -5.21B | -5.11B | -4.92B | -4.9B | -4.75B | -4.6B | -4.35B | -3.46B | -2.91B | -2.77B | -2.71B | -2.61B | -2.54B | -2.36B | -2.09B | -1.8B | -1.39B | -1.2B | -1.15B | -1.04B | -856M | -773M | -707K | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.82B | -1.15B | -792M | -110M | -2.09B | -82M | -18M | -117M | -139M | -205M | -64M | -46M | -849M | -1.58B | -1.38B | -878M | -66M | -94M | -516M | -791M | -577M | -549M | -536M | -698M | 0 | 0 | -695M | 0 | 0 | 0 | 0 |
| Other Financing | -3.53B | -2.2B | -2.21B | -2.46B | -2.09B | 102M | -2.33B | -2.48B | -1.66B | -1.68B | -891M | -2.3B | -576M | -781M | -760M | -293M | -425M | -501M | -859M | -283M | -131M | -235M | -148M | -27M | -31.29M | -36M | 0 | 0 | -21M | -18M | -25M |
| Net Change in Cash | 1.32B | -1.32B | 587M | 1.18B | 874M | -425M | 853M | -293M | -494M | 1.17B | -79M | 238M | -284M | -63M | -103M | -241M | 204M | -241M | 1.04B | -96M | -388M | -66M | -1.72B | -1.84B | -1.57B | 193M | -24M | 34M | 162M | 179M | 36M |
| Free Cash Flow | 14.73B | 5.79B | 9.52B | 10.25B | 9.87B | 9.19B | 9.28B | 8.33B | 9.54B | 4.56B | 4.02B | 4.24B | 3.19B | 3.86B | 3.76B | 3.32B | 3.35B | 2.62B | 2.86B | 1.78B | 1.45B | 1.62B | 1B | 779M | 477M | 720M | 718M | 822M | -198M | -13M | 115M |
| FCF Margin % | 28.61% | 22.61% | 36.79% | 37.58% | 35.69% | 35.78% | 35.98% | 32.2% | 38.94% | 23.29% | 28.48% | 33.8% | 22.81% | 25.31% | 24.77% | 21.57% | 22.54% | 18.45% | 23.56% | 17.77% | 14.87% | 17.38% | 9.33% | 3.04% | 1932.58% | 6.33% | 6.58% | 9.06% | -2.78% | -0.18% | 1.59% |
| FCF Growth % | -26.57% | -39.15% | -7.19% | 3.88% | 7.41% | -0.92% | 11.32% | -12.63% | 109.33% | 13.22% | -5.03% | 32.95% | -17.48% | 2.63% | 13.31% | -1.01% | 28% | -8.23% | 60.45% | 22.59% | -10.43% | 61.29% | 29.01% | 63.31% | -33.75% | 0.28% | -12.65% | 515.15% | -1423.08% | -111.3% | -37.84% |
| FCF per Share | 6.77 | 2.63 | 4.28 | 4.60 | 4.36 | 4.06 | 4.10 | 3.68 | 4.21 | 2.01 | 1.78 | 1.87 | 1.41 | 1.71 | 1.66 | 1.47 | 1.48 | 1.16 | 1.26 | 0.79 | 0.64 | 0.72 | 0.44 | 0.34 | 0.21 | 0.32 | 0.32 | 0.36 | -0.09 | -0.01 | 0.05 |
| FCF Conversion (FCF/Net Income) | 1.54x | 0.82x | 3.30x | -0.75x | 1.56x | 1.43x | 1.53x | 1.58x | 1.71x | 0.14x | 0.99x | 1.10x | 1.19x | 1.14x | 1.15x | 1.27x | 1.37x | 1.17x | 1.38x | 1.06x | 0.99x | 1.13x | 0.47x | 1.91x | 839.41x | 1.22x | 1.56x | 1.83x | 0.48x | 0.84x | 0.48x |
| Interest Paid | 1.67B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying BTI stock.
British American Tobacco p.l.c. (BTI) generated $6.34B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
British American Tobacco p.l.c. (BTI) generated $5.79B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
British American Tobacco p.l.c. (BTI) spent $551.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, British American Tobacco p.l.c. (BTI) returned $5.12B to shareholders via cash dividends and spent $1.15B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
US regulatory and volume decline
Cash Conversion Volatility Amid Impairments
Operating cash flow exceeded net income in 2024Q4 and 2023Q4, but 2026Q2 OCF/NI fell to 0.81, indicating earnings quality fluctuations, as per quarterly cash flow data.
The OCF/NI ratio swung from -2.44 in 2024Q4 to 1.05 in 2025Q4, reflecting the distorting impact of non-cash impairments on net income. In 2026Q2, the ratio of 0.81 suggests that reported earnings are not fully backed by cash generation, possibly due to working capital outflows. Investors should monitor whether this gap widens, as it may signal deteriorating earnings quality.
Free Cash Flow Resilience Despite Top-Line Pressure
FCF margins have ranged from 12.1% to 50.5% over the past ten quarters, with 2026Q2 at 20.0%, reflecting volatility but overall stability, based on reported cash flow statements.
Despite flat revenue, FCF has remained positive, with 2025Q4 generating $3.6B at a 26.5% margin. However, the 2026Q2 margin of 20.0% is below the 2025Q4 level, suggesting that cash generation may be moderating. The gap between FCF and net income is notable in quarters with impairments, but the underlying cash flow appears resilient.
Low Capital Intensity Masks Strategic Investment Needs
CapEx averaged only 2.0% of revenue over the last ten quarters, with 2026Q2 at 1.4%, indicating a mature asset base, as per cash flow data.
The consistently low CapEx/Revenue ratio suggests that BTI's manufacturing and distribution infrastructure requires minimal maintenance investment. However, this may understate the need for investment in New Categories, which could require higher R&D and marketing spend. The low capital intensity supports FCF generation but may limit future growth if investment is insufficient.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes ranged from -$2.3B to +$3.9B over the past ten quarters, with 2026Q2 showing a -$1.4B outflow, according to quarterly cash flow reports.
The large swings in working capital, particularly in 2024Q4 (+$3.9B) and 2025Q2 (-$2.0B), indicate that BTI's cash flow is sensitive to timing of collections, inventory, and payables. The 2026Q2 outflow suggests a build-up in receivables or inventory, which may pressure near-term cash. This volatility complicates the assessment of underlying cash generation.
Dividend and Buyback Demands Outpace Cash Generation
Dividends paid averaged $2.8B per quarter over the last ten quarters, while buybacks averaged $0.5B, collectively exceeding operating cash flow in some periods, as per cash flow data.
In 2026Q2, dividends of $2.7B and buybacks of $756.5M totaled $3.5B, exceeding operating cash flow of $2.6B, implying reliance on cash reserves or external financing. This pattern is consistent across several quarters, suggesting that shareholder returns are not fully covered by operating cash flow. The sustainability of this deployment strategy warrants close monitoring, especially given the strained balance sheet.
Cumulative Earnings vs Cash: Impairments Distort the Picture
Over the last ten quarters, cumulative net income was -$0.5B, while cumulative operating cash flow was $45.4B, a divergence driven by non-cash impairments, as reported in financial statements.
The massive $31.5B impairment in 2023Q4 caused cumulative net income to be negative, yet operating cash flow remained strongly positive. This highlights that the company's cash-generating ability is intact, but reported earnings are heavily influenced by non-cash charges. Investors should focus on cash flow metrics rather than net income when assessing BTI's financial health.
Cash Flow Statement Obscures Strategic Cash Needs
SBC was negligible, but the cash flow statement does not fully capture the cash required for New Category investments and potential regulatory costs, based on available data.
While SBC is minimal, the cash flow statement may not reflect the full cash outlays for R&D and marketing in New Categories, which are expensed through the income statement. Additionally, the low CapEx figure may not include investments in intangible assets or acquisitions that are not classified as CapEx. The true cash cost of BTI's transformation may be higher than reported, warranting a closer look at segment-level cash flows.