ALTRIA GROUP, INC. (MO) Earnings History

ALTRIA GROUP, INC. - Q4 FY2025 EarningsMissed

Filed at: Jan 29, 2026, 7:04 AM EST|Read from source

EXECUTIVE SUMMARY

Altria reported a challenging fourth quarter with declining revenues and reported EPS, largely due to significant non-cash impairment charges in its e-vapor segment. However, adjusted diluted EPS remained flat for the quarter, and grew 4.4% for the full year, driven by strategic pricing, cost initiatives, and a lower tax rate, demonstrating resilience in its core businesses.

POSITIVE HIGHLIGHTS

  • •

    Full-year adjusted diluted EPS increased 4.4% to $5.42.

    positive
  • •

    Full-year adjusted OCI margins increased 1.8 percentage points to 63.4% for smokeable products.

    positive
  • •

    Full-year adjusted OCI margins increased 0.1 percentage point to 67.9% for oral tobacco products.

    positive
  • •

    Returned $8 billion to shareholders through dividends and share repurchases in 2025.

    positive

CONCERNS & RISKS

  • •

    Reported diluted EPS decreased 63.1% to $0.66 in Q4 2025, primarily driven by $1.3 billion in non-cash impairment charges in the e-vapor segment and unfavorable income tax items.

    negative
  • •

    Net revenues decreased 2.1% to $5.8 billion in Q4 2025, primarily driven by lower net revenues in the smokeable products segment.

    negative
  • •

    Domestic cigarette shipment volume decreased 7.9% in Q4 2025, primarily driven by industry decline and trade inventory movements.

    negative
  • •

    Oral tobacco products segment reported domestic shipment volume decreased 6.3% in Q4 2025.

    negative
  • •

    Marlboro retail share decreased 1.5 share points in Q4 2025.

    negative
  • •

    Total U.S. oral tobacco category share for on! nicotine pouches was 7.7% in Q4 2025, a decrease of 1.0 share point versus the prior year.

    negative

FINANCIAL METRICS

Revenue
Quarterly
$5.85B
-2.1%
Prior year: $5.97B
Annual (YTD)
$23.28B
N/A
Prior year: $24.02B
Net Income
Quarterly
$1.12B
-63.2%
Prior year: $3.04B
Annual (YTD)
$6.95B
N/A
Prior year: $11.26B
EPS (Diluted)
Quarterly
$0.66
-63.1%
Prior year: $1.79
Annual (YTD)
$4.12
N/A
Prior year: $6.54
Operating Income
Quarterly
$1.65B
N/A
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Gross Margin
Current Quarter
62.1%
Prior Year
60.3%
YoY Change
+179 bps
Operating Margin
Current Quarter
28.2%
Prior Year
48.2%
YoY Change
-1995 bps
Net Margin
Current Quarter
19.1%
Prior Year
50.9%
YoY Change
-3176 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Smokeable Products
0.0%
N/A
Oral Tobacco Products
0.0%
N/A
E-Vapor Products
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Smokeable Products
N/A———
Oral Tobacco Products
N/A———
E-Vapor Products
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY2026

adjusted diluted EPS
$5.56—$5.72
Mid-point: $5.64
"Represents a growth rate of 2.5% to 5.5% from a base of $5.42 in 2025. Growth is expected to be weighted to the second half of the year."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Asset impairment, exit and implementation costs (primarily non-cash impairments of e-vapor reporting unit goodwill and definite-lived intangible assets)
+$1,268M
$0.61 per share
FY2025
Asset impairment, exit and implementation costs (primarily non-cash impairments of e-vapor reporting unit goodwill and definite-lived intangible assets)
+$2,184M
$1.14 per share
FY2025
Acquisition and disposition-related items (related to ITC exclusion order and change in fair value of contingent payments for NJOY)
+$67M
$0.04 per share
FY2025
Tobacco and health and certain other litigation items
+$55M
$0.03 per share
FY2025
Amortization of intangibles
+$132M
$0.06 per share
FY2025
ABI-related special items (mark-to-market losses on financial instruments)
+$95M
$0.04 per share
Q4 2024
Acquisition and disposition-related items (gain on sale of IQOS rights)
This was a gain, hence negative in the reconciliation table for expenses.
$2,700M
$1.08 per share
FY2024
Asset impairment, exit and implementation costs (Skoal trademark impairment, employee separation, Initiative costs)
+$422M
$0.18 per share
FY2024
Tobacco and health and certain other litigation items
+$101M
$0.04 per share
FY2024
Amortization of intangibles
+$139M
$0.07 per share
Q4 2024
Income tax items (reversal of unrecognized tax benefit related to JUUL)
This was a benefit, hence negative in the reconciliation table for expenses.
$928M
$0.55 per share
FY2024
Income tax items (reversal of unrecognized tax benefit related to JUUL and partial release of valuation allowance for ABI)
This was a benefit, hence negative in the reconciliation table for expenses.
$969M
$0.56 per share
Total Impact
$134M$0.02 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

2025 was a year of continued momentum for Altria, marked by strong financial performance, strategic progress across our smoke-free portfolio, new relationships in support of our long-term growth goals and significant cash returns to shareholders.

— ALTRIA GROUP, INC., Q4 FY2025 2025 Earnings Call

For the full year, we grew adjusted diluted earnings per share by 4.4% and returned $8 billion to shareholders through dividends and share repurchases combined.

— ALTRIA GROUP, INC., Q4 FY2025 2025 Earnings Call

We expect to deliver 2026 full-year adjusted diluted EPS in a range of $5.56 to $5.72. This range represents a growth rate of 2.5% to 5.5% from a base of $5.42 in 2025.

— ALTRIA GROUP, INC., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Domestic Cigar Shipment Volume
449.0M
+4.2% YoY
Prior year: 431.0M
Domestic Cigarette Shipment Volume
15290.0M
-7.9% YoY
Prior year: 16593.0M
Domestic Oral Tobacco Shipment Volume
180.2M
-6.3% YoY
Prior year: 192.3M
On Nicotine Pouch Shipment Volume
44.2M
+0.7% YoY
Prior year: 43.9M

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.

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