Altria Group reported third‑quarter 2025 results with net revenue of $6.072 billion, a 3.0 % year‑over‑year decline, and a miss of the $5.31 billion consensus estimate. Adjusted diluted earnings per share were $1.45, a 3.6 % increase from $1.38 in Q3 2024, and matched consensus expectations.
Domestic cigarette shipments fell 8.2 %, while oral tobacco net revenue declined 4.6 % to $689 million. The company’s smoke‑free portfolio, including the “on!” nicotine pouch and NJOY e‑vapor brands, continued to grow, offsetting some of the traditional segment weakness.
Management raised the lower end of its 2025 full‑year adjusted diluted EPS guidance to a range of $5.37 to $5.45, a 3.5 % to 5.0 % increase from the 2024 base of $5.19. The new midpoint of $5.41 is below the consensus estimate of $5.44, and the company expects earnings growth to moderate in Q4 due to share‑repurchase lapping and the expiration of the Master Settlement Agreement legal fund.
Altria expanded its share‑repurchase program to $2 billion, with the program set to expire on December 31, 2026, and lifted its quarterly dividend to $4.24 per share, a 3.9 % increase.
CEO Billy Gifford said the core tobacco business remains resilient, that progress in the smoke‑free segment is opening new growth pathways, and that cost‑saving initiatives are supporting profitability. He highlighted regulatory headwinds, inflationary pressures, and competitive challenges in both traditional and smoke‑free markets.
The company’s competitive landscape includes aggressive expansion by Philip Morris International in smoke‑free products and the rise of flavored disposable e‑vapor products, which have impacted traditional cigarette volumes. Altria’s strategic focus on smoke‑free offerings, investment in “on!” and NJOY, and exploration of international modern oral and non‑nicotine innovations aim to offset declining cigarette sales. Regulatory and economic headwinds—such as increased tariffs and enforcement against illicit e‑vapor products—continue to shape the operating environment.
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