Altria Group (MO) Q1 2025 earnings summary

Executive summary

• Adjusted diluted EPS rose 6% to $1.23 in Q1 2025, while reported EPS fell 47.9% to $0.63 due to a non-cash $873 million impairment from the NJOY ACE ITC ban and acquisition-related costs.

• Net revenues declined 5.7% to $5.26 billion, mainly from lower smokeable product volumes, but profitability was supported by strong pricing and cost controls.

• Oral nicotine pouches, led by on!, continued to gain share and volume, while the e-vapor category faced challenges from illicit products and regulatory actions.

• The company remains focused on transitioning adult smokers to smoke-free alternatives and regulatory advocacy, despite headwinds from illicit e-vapor products and legal risks.

• Shareholder returns remained robust through $1.7 billion in dividends and $326 million in share repurchases in Q1.

Financial highlights

• Net revenues: $5.26 billion, down 5.7% year-over-year; smokeable products revenue fell 5.8%, oral tobacco products were flat.

• Adjusted diluted EPS: $1.23, up 6% year-over-year; reported diluted EPS: $0.63, down 47.9%.

• Adjusted OCI margin for smokable products: 64.4%, up 4.2pp year-over-year.

• Adjusted OCI margin for oral tobacco: 69.2%, down 0.3pp year-over-year.

• ABI adjusted equity earnings were $146 million, down 11.5% due to a lower ownership stake.

Outlook and guidance

• 2025 full-year adjusted diluted EPS expected at $5.30–$5.45, up 2%–5% from 2024’s recast base of $5.19.

• Guidance assumes limited impact from enforcement on illicit e-vapor and that NJOY Ace does not return in 2025.

• Guidance includes reinvestment of cost savings, higher tariffs, and excludes impacts from asset impairments and litigation.