Revenue has been flat (TTM growth -1.0%), with gross margins resilient at 83.4% in 2025Q4 but operating margin compressing to 38.2% in 2026Q2 from 42.0% a year earlier, reflecting an 80% jump in SG&A to $2.7B.
British American Tobacco p.l.c. (BTI) annual income statement — 30-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 51.46B | 25.61B | 25.87B | 27.28B | 27.66B | 25.68B | 25.78B | 25.88B | 24.49B | 19.56B | 14.13B | 12.54B | 13.97B | 15.26B | 15.19B | 15.4B | 14.88B | 14.21B | 12.12B | 10.02B | 9.76B | 9.32B | 10.77B | 25.62B | 24.68M | 11.37B | 10.91B | 9.07B | 7.12B | 7.15B | 7.24B |
| Revenue Growth % | - | -0.99% | -5.19% | -1.35% | 7.67% | -0.36% | -0.39% | 5.65% | 25.19% | 38.46% | 12.72% | -10.27% | -8.45% | 0.46% | -1.36% | 3.47% | 4.75% | 17.21% | 21% | 2.62% | 4.69% | -13.4% | -57.97% | - | -99.78% | 4.18% | 20.32% | 27.42% | -0.45% | -1.23% | 6.94% |
| Cost of Goods Sold | 11.54B | 4.23B | 4.44B | 4.89B | 4.8B | 4.6B | 4.45B | 4.46B | 4.6B | 5.03B | 3.73B | 3.03B | 3.03B | 3.24B | 3.31B | 3.43B | 3.71B | 3.95B | 3.32B | 2.77B | 2.87B | 2.76B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 16.5% | 17.15% | 17.93% | 17.37% | 17.9% | 17.25% | 17.24% | 18.77% | 25.73% | 26.42% | 24.19% | 21.69% | 21.25% | 21.8% | 22.25% | 24.91% | 27.79% | 27.36% | 27.67% | 29.42% | 29.6% | - | - | - | - | - | - | - | - | - |
| Gross Profit | 39.92B | 21.38B | 21.43B | 22.39B | 22.85B | 21.09B | 21.33B | 21.42B | 19.89B | 14.53B | 10.4B | 9.5B | 10.94B | 12.02B | 11.88B | 11.97B | 11.18B | 10.26B | 8.81B | 7.25B | 6.89B | 6.57B | 10.77B | 25.62B | 24.68M | 11.37B | 10.91B | 9.07B | 7.12B | 7.15B | 7.24B |
| Gross Margin % | - | 83.5% | 82.85% | 82.07% | 82.63% | 82.1% | 82.75% | 82.76% | 81.23% | 74.27% | 73.58% | 75.81% | 78.31% | 78.75% | 78.2% | 77.75% | 75.09% | 72.21% | 72.64% | 72.33% | 70.58% | 70.4% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | -0.22% | -4.29% | -2.01% | 8.37% | -1.13% | -0.41% | 7.65% | 36.91% | 39.76% | 9.41% | -13.14% | -8.95% | 1.17% | -0.79% | 7.13% | 8.93% | 16.51% | 21.53% | 5.17% | 4.95% | -39.03% | -57.97% | - | -99.78% | 4.18% | 20.32% | 27.42% | -0.45% | -1.23% | 6.94% |
| Operating Expenses | 26.73B | 11.39B | 18.56B | 38.14B | 12.33B | 10.85B | 11.37B | 11.8B | 9.98B | 16.01B | 3.58B | 3.15B | 5.66B | 5.76B | 6.47B | 10.42B | 10.2B | 10.01B | 5.38B | 4.42B | 4.26B | 4.22B | 8.38B | 22.92B | 22.12M | 8.76B | 8.36B | 7.16B | 5.53B | 5.31B | 5.62B |
| OpEx % of Revenue | - | 44.46% | 71.76% | 139.81% | 44.58% | 42.26% | 44.1% | 45.6% | 40.74% | 81.84% | 25.3% | 25.16% | 40.48% | 37.73% | 42.57% | 67.69% | 68.51% | 70.45% | 44.34% | 44.09% | 43.65% | 45.23% | 77.87% | 89.44% | 89.64% | 77.02% | 76.56% | 78.88% | 77.64% | 74.2% | 77.54% |
| Selling, General & Admin | 9.44B | 1.12B | 3.95B | 3.86B | 3.83B | 3.81B | 3.76B | 2.87B | 3B | 2.61B | 2.1B | 1.95B | 2.07B | 2.36B | 15.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | 4.38% | 15.27% | 14.13% | 13.85% | 14.83% | 14.59% | 11.11% | 12.25% | 13.35% | 14.9% | 15.57% | 14.8% | 15.48% | 0.1% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Research & Development | 560M | 133M | 380M | 408M | 323M | 304M | 307M | 376M | 105M | 191M | 144M | 148M | 154M | 161M | 93M | 81M | 82M | 51M | 50M | 43M | 36M | 29M | 29M | 73M | 62M | 59M | 59M | 58M | 45M | 42M | 37M |
| R&D % of Revenue | - | 0.52% | 1.47% | 1.5% | 1.17% | 1.18% | 1.19% | 1.45% | 0.43% | 0.98% | 1.02% | 1.18% | 1.1% | 1.05% | 0.61% | 0.53% | 0.55% | 0.36% | 0.41% | 0.43% | 0.37% | 0.31% | 0.27% | 0.28% | 251.2% | 0.52% | 0.54% | 0.64% | 0.63% | 0.59% | 0.51% |
| Other Operating Expenses | 2M | 10.13B | 14.23B | 33.88B | 8.18B | 6.74B | 7.3B | 8.55B | 79M | 136M | 170M | -3.05B | -3.68B | -3.63B | -3.6B | -1.31B | -1.23B | -1.08B | -954M | -898M | -888M | -784M | -252M | 292M | -50K | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 13.18B | 10B | 2.74B | -15.75B | 10.52B | 10.23B | 9.96B | 10.41B | 10.03B | 7.17B | 5.26B | 4.93B | 5.04B | 5.78B | 5.41B | 4.72B | 4.32B | 4.1B | 3.57B | 2.9B | 2.62B | 2.42B | 3.76B | 1.85B | 2.18M | 2.18B | 1.78B | 1.48B | 1.01B | 1.3B | 1.71B |
| Operating Margin % | - | 39.04% | 10.58% | -57.73% | 38.05% | 39.85% | 38.65% | 40.24% | 40.96% | 36.64% | 37.2% | 39.36% | 36.05% | 37.88% | 35.63% | 30.66% | 29.01% | 28.86% | 29.47% | 28.99% | 26.86% | 25.95% | 34.92% | 7.23% | 8.83% | 19.14% | 16.34% | 16.3% | 14.2% | 18.22% | 23.67% |
| Operating Income Growth % | - | 265.39% | 117.37% | -249.68% | 2.82% | 2.73% | -4.33% | 3.8% | 39.94% | 36.4% | 6.53% | -2.03% | -12.87% | 6.8% | 14.64% | 9.33% | 5.29% | 14.81% | 23% | 10.76% | 8.35% | -35.64% | 103.02% | 84854.13% | -99.9% | 21.97% | 20.62% | 46.29% | -22.41% | -23.98% | 4.13% |
| EBITDA | 17.28B | 12.27B | 5.84B | 8.25B | 11.6B | 11.18B | 10.82B | 11.36B | 11.07B | 7.98B | 5.81B | 5.34B | 5.46B | 6.17B | 5.89B | 5.54B | 5.21B | 4.71B | 4B | 3.24B | 2.98B | 2.8B | 4.13B | 2.73B | 340.18M | 2.57B | 2.19B | 1.83B | 1.31B | 1.54B | 1.95B |
| EBITDA Margin % | - | 47.9% | 22.57% | 30.23% | 41.94% | 43.52% | 41.98% | 43.89% | 45.2% | 40.8% | 41.09% | 42.57% | 39.07% | 40.45% | 38.76% | 35.96% | 35.04% | 33.16% | 33.01% | 32.34% | 30.48% | 30.06% | 38.4% | 10.67% | 1378.25% | 22.62% | 20.02% | 20.16% | 18.37% | 21.56% | 26.86% |
| EBITDA Growth % | - | 110.16% | -29.24% | -28.88% | 3.76% | 3.32% | -4.74% | 2.61% | 38.7% | 37.47% | 8.8% | -2.25% | -11.57% | 4.86% | 6.3% | 6.19% | 10.67% | 17.74% | 23.52% | 8.91% | 6.14% | -32.21% | 51.24% | 703.69% | -86.77% | 17.71% | 19.46% | 39.83% | -15.18% | -20.72% | 4.18% |
| D&A (Non-Cash Add-back) | 4.1B | 2.27B | 3.1B | 24B | 1.08B | 944.87M | 858.02M | 945.48M | 1.04B | 812.31M | 549.75M | 402M | 423M | 393M | 475M | 817M | 897M | 611M | 430M | 336M | 353M | 383M | 375M | 882M | 338M | 396M | 401M | 350M | 297M | 239M | 231M |
| EBIT | 15.6B | 9.76B | 4.64B | 12.64B | 11.5B | 10.24B | 10.94B | 9.13B | 9.54B | 29.7B | 4.69B | 6.44B | 5.44B | 6.41B | 6.17B | 5.5B | 4.97B | 4.68B | 4.22B | 3.46B | 3.17B | 2.96B | 4B | 1.9B | 2.45B | 2.47B | 2.01B | 1.74B | 1.09B | 1.24B | 1.97B |
| Net Interest Income | -2.71B | -1.71B | -1.1B | -1.7B | -1.59B | -1.44B | -1.74B | -1.71B | -1.58B | -1.05B | -607M | -615M | -523M | -552M | -499M | -488M | -525M | -519M | -404M | -271M | -292M | -268M | -256M | -335M | -333M | -409M | -489M | -370M | -355M | -368M | -340M |
| Interest Income | 422.02M | 214M | 0 | 186M | 92M | 35M | 50M | 1.7B | 1.57B | 1.01B | 577M | 494M | 438M | 460M | 49M | 82M | 60M | 85M | 131M | 111M | 122M | 106M | 112M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.13B | 1.93B | 1.1B | 1.89B | 1.66B | 1.49B | 1.78B | 1.81B | 1.48B | 1.2B | 681M | 584M | 484M | 532M | 505M | 567M | 583M | 602M | 535M | 382M | 410M | 373M | 368M | 209M | 184K | 409M | 489M | 370M | 355M | 368M | 340M |
| Other Income/Expense | -1.31B | -138M | 802M | -1.31B | -1.2B | -1.07B | -1.29B | -2.5B | -1.68B | 22.36B | 989M | 921M | -188M | 19M | -456M | -460M | -708M | -238M | -424M | -269M | -302M | -349M | -130M | -210M | -67M | -111M | -262M | -108M | -273M | -428M | -88M |
| Pretax Income | 11.88B | 9.86B | 3.54B | -17.06B | 9.32B | 9.16B | 8.67B | 7.91B | 8.35B | 29.53B | 6.25B | 5.86B | 4.85B | 5.8B | 5.65B | 4.93B | 4.39B | 4.08B | 3.68B | 3.08B | 2.76B | 2.58B | 3.63B | 1.57B | 2.11M | 2.06B | 1.52B | 1.37B | 738M | 875M | 1.63B |
| Pretax Margin % | - | 38.5% | 13.68% | -62.53% | 33.72% | 35.68% | 33.64% | 30.58% | 34.1% | 150.93% | 44.2% | 46.71% | 34.7% | 38% | 37.18% | 32.02% | 29.48% | 28.72% | 30.39% | 30.71% | 28.31% | 27.71% | 33.71% | 6.12% | 8.56% | 18.16% | 13.94% | 15.11% | 10.37% | 12.23% | 22.46% |
| Income Tax | 2.24B | 2.09B | 357M | -2.87B | 2.48B | 2.19B | 2.11B | 2.06B | 2.14B | -8.13B | 1.41B | 1.33B | 1.46B | 1.6B | 1.53B | 1.56B | 1.25B | 1.12B | 1.02B | 790M | 716M | 690M | 673M | 779M | 818K | 886M | 660M | 673M | 277M | 357M | 520M |
| Effective Tax Rate % | 18.86% | 21.24% | 10.09% | 16.83% | 26.58% | 23.89% | 24.31% | 26.07% | 25.64% | -27.53% | 22.51% | 22.77% | 30.01% | 27.59% | 27.02% | 31.56% | 28.44% | 27.55% | 27.82% | 25.67% | 25.9% | 26.7% | 18.54% | 49.71% | 38.71% | 42.91% | 43.36% | 49.09% | 37.53% | 40.8% | 31.98% |
| Net Income | 9.55B | 7.76B | 3.07B | -14.37B | 6.67B | 6.8B | 6.4B | 5.7B | 6.03B | 37.53B | 4.65B | 4.29B | 3.12B | 3.9B | 3.84B | 3.1B | 2.88B | 2.71B | 2.46B | 2.13B | 1.9B | 1.77B | 2.83B | 631M | 1.15M | 1.01B | 692M | 556M | 346M | 412M | 988M |
| Net Margin % | - | 30.32% | 11.86% | -52.66% | 24.1% | 26.48% | 24.83% | 22.04% | 24.63% | 191.85% | 32.89% | 34.22% | 22.3% | 25.58% | 25.29% | 20.1% | 19.34% | 19.09% | 20.27% | 21.26% | 19.42% | 18.95% | 26.25% | 2.46% | 4.67% | 8.88% | 6.34% | 6.13% | 4.86% | 5.76% | 13.64% |
| Net Income Growth % | - | 153.06% | 121.35% | -315.53% | -1.98% | 6.27% | 12.2% | -5.44% | -83.93% | 707.51% | 8.34% | 37.72% | -20.21% | 1.64% | 24.1% | 7.5% | 6.12% | 10.42% | 15.35% | 12.34% | 7.3% | -37.5% | 348.02% | 54674.31% | -99.89% | 45.95% | 24.46% | 60.69% | -16.02% | -58.3% | 14.88% |
| Net Income (Continuing) | 9.64B | 7.76B | 3.18B | -14.19B | 6.85B | 6.97B | 6.56B | 5.35B | 5.79B | 37.66B | 2.61B | 3.29B | 2.67B | 3.46B | 4.08B | 3.38B | 3.14B | 2.96B | 2.66B | 2.29B | 2.05B | 1.89B | 2.96B | 788M | 1.29B | 1.18B | 862M | 698M | 461M | 518M | 1.11B |
| Discontinued Operations | 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 |
| Minority Interest | 216M | 219M | 352M | 368M | 342M | 300M | 282M | 258M | 244M | 222M | 224M | 138M | 304M | 301M | 307M | 307M | 342M | 299M | 271M | 218M | 227M | 247M | 198M | 225M | 267K | 329M | 419M | 455M | 323M | 342M | 327M |
| EPS (Diluted) | - | 3.49 | 1.36 | -6.47 | 2.92 | 2.96 | 2.79 | 2.49 | 2.66 | 18.28 | 2.49 | 2.30 | 1.67 | 2.05 | 1.97 | 1.56 | 1.44 | 1.36 | 1.23 | 1.04 | 0.91 | 0.84 | 1.13 | 0.27 | 0.50 | 0.44 | 0.30 | 0.25 | 0.22 | 0.26 | 0.64 |
| EPS Growth % | - | 156.62% | 121.02% | -321.58% | -1.35% | 6.09% | 12.05% | -6.39% | -85.45% | 634.14% | 8.26% | 37.72% | -18.54% | 4.06% | 26.28% | 8.33% | 5.88% | 10.57% | 18.27% | 14.29% | 8.33% | -25.66% | 318.52% | -46% | 13.64% | 46.67% | 20% | 13.64% | -15.38% | -59.38% | 14.29% |
| EPS (Basic) | - | 3.51 | 1.37 | -6.49 | 2.93 | 2.97 | 2.80 | 2.50 | 2.68 | 18.34 | 2.50 | 2.31 | 1.67 | 2.05 | 1.98 | 1.57 | 1.45 | 1.37 | 1.23 | 1.05 | 0.92 | 0.84 | 1.13 | 0.27 | 0.51 | 0.44 | 0.30 | 0.25 | 0.22 | 0.27 | 0.64 |
| Diluted Shares Outstanding | 2.18B | 2.2B | 2.23B | 2.23B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B | 2.26B |
| Basic Shares Outstanding | 2.17B | 2.19B | 2.21B | 2.22B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B | 2.25B |
| Dividend Payout Ratio | - | 65.99% | 169.92% | - | 73.73% | 72.11% | 74.14% | 80.61% | 72.07% | 9.23% | 62.61% | 64.57% | 87.06% | 66.88% | 66.08% | 76.19% | 72.7% | 66.27% | 56.7% | 56.24% | 53.16% | 51.5% | 30.28% | 122.5% | 61.37% | - | - | - | - | - | - |
Quick answers to the most common questions about buying BTI stock.
For fiscal year 2025, British American Tobacco p.l.c. (BTI) reported total revenue of $25.61B. This represents a 253.7% increase compared to $7.24B in 1996.
British American Tobacco p.l.c. (BTI) is profitable, generating $7.76B in net income for the fiscal year ending 2025 with a net profit margin of 30.3%.
British American Tobacco p.l.c. (BTI) reported an operating income of $10.00B, resulting in an operating profit margin of 39.0%. This margin reflects the operational efficiency of the business before interest and taxes.
British American Tobacco p.l.c. (BTI) generated $21.38B in gross profit for the year, representing a gross profit margin of 83.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
US regulatory and volume decline
Top-Line Stagnation Amid Portfolio Shift
Revenue has been essentially flat over the past two years, with TTM growth at -1.0%, as combustible volume declines offset gains in New Categories, according to recent financial statements.
The most recent quarter (2026Q2) shows a 2.1% YoY revenue increase, but this follows a -2.2% decline in 2025Q2, indicating a volatile and overall decelerating trend. The lack of consistent growth suggests that the company's transformation is not yet generating sufficient top-line momentum to offset legacy declines. Investors should monitor whether New Category revenue can accelerate to a level that drives sustainable growth.
Gross Margin Resilience, Operating Pressure
Gross margin remains robust at 83.5% in 2025Q4, but operating margin has compressed to 38.2% in 2026Q2 from 42.0% a year earlier, as reported in quarterly filings.
The stability of gross margin indicates strong pricing power and a cost structure dominated by excise taxes rather than production costs. However, the operating margin decline suggests increased SG&A or promotional spending, likely in New Categories. This margin compression may persist as the company invests to gain share in vapor and heated tobacco, potentially pressuring near-term profitability.
Operating Leverage Fading as Costs Rise
Operating income has not scaled with revenue; in 2026Q2, operating income of $4.7B is below the $5.1B reported in 2025Q2, despite similar revenue levels, based on income statement data.
The data reveals that SG&A expenses increased from $1.5B in 2025Q2 to $2.7B in 2026Q2, a significant jump that has eroded operating leverage. This suggests that the company is spending more on marketing and distribution to defend market share, which may be necessary but dilutes incremental profitability. If this trend continues, operating margins could face further pressure.
Impairments Distort Earnings History
Net income swung from a -$18.3B loss in 2023Q4 to a $3.2B profit in 2026Q2, driven by a $31.5B non-cash impairment in 2023, as disclosed in financial reports.
The massive impairment in 2023Q4 reflects a write-down of US combustible brand values, which is a non-cash charge that obscures underlying profitability. Excluding this, earnings have been relatively stable, but the impairment signals a shorter economic life for legacy brands. Investors should adjust for such one-time items to assess true earning power, and monitor for any further impairments.
SG&A Spike Threatens Margin Stability
SG&A expenses jumped to $2.7B in 2026Q2 from $1.5B in 2025Q2, a 80% increase, while COGS remained flat, according to quarterly income statement data.
The sharp rise in SG&A is the primary driver of operating margin compression, suggesting increased investment in marketing and distribution, likely for New Categories. This may be a deliberate strategy to build market share, but it raises questions about cost discipline. If SG&A remains elevated without corresponding revenue growth, profitability will continue to suffer.
Balance Sheet Strain and Regulatory Overhang
With a current ratio of 0.87 and an Altman Z-Score of 1.46, BTI's liquidity and solvency metrics appear strained, as per recent risk assessments.
The weak liquidity ratios and distress-zone Z-Score suggest that the company may face challenges in meeting short-term obligations without external financing. This, combined with the risk of US menthol bans and FDA enforcement, could pressure the stock. Short-sellers might argue that the company's high dividend is unsustainable given the need for investment and potential regulatory shocks.