Altria Group (MO) Q4 2025 earnings summary

Executive summary

• Achieved strong financial performance in 2025, with adjusted diluted EPS up 4.4% year-over-year to $5.42 and $10.2 billion returned to shareholders via dividends and share repurchases.

• Advanced smoke-free portfolio and strategy, including FDA authorizations for on! PLUS, new product launches, and international expansion in nicotine pouches.

• Maintained resilience in core tobacco businesses, with solid income growth and margin expansion despite market headwinds.

• Significant cost savings initiatives underway, including Optimize & Accelerate targeting $600M by 2029.

Financial highlights

• Adjusted diluted EPS for 2025 was $5.42, up 4.4% from 2024; 2026 guidance set at $5.56–$5.72, representing 2.5%–5.5% growth.

• Returned $10.2 billion to shareholders in 2025, including $7 billion in dividends and $1 billion in share repurchases; dividend raised by 3.9%.

• Smokable product segment delivered over $11 billion in adjusted OCI for the year, with margins expanding 1.8 points to 63.4%.

• Oral tobacco segment adjusted OCI increased 1.3% for the year, with margins up 0.1 points to 67.9%.

• Recorded $2.2 billion non-cash impairment charge in e-vapor segment due to slower-than-expected enforcement and market factors.

Outlook and guidance

• 2026 adjusted diluted EPS guidance of $5.56–$5.72, with growth weighted to the second half due to increased import/export activity.

• Planned investments in contract manufacturing, smoke-free product R&D, and regulatory preparations.

• CapEx projected at $300–$375 million in 2026, primarily for import/export and smoke-free manufacturing capabilities.

• Helix (on! and on! PLUS) expected to remain profitable in 2026, with national rollout of on! PLUS in first half.

• 2026 adjusted effective tax rate expected between 22.5% and 23.5%.