Top Takeaways:
- Adjusted diluted EPS rose 8.3% to $1.44 in Q2, and grew 7.2% to $2.67 for the first half, driven by strong profit in core business segments.
- Net revenues slipped 1.7% in Q2 to $6.10 billion, and fell 3.6% for the half-year to $11.36 billion, primarily due to lower smokeable product revenues.
- On! nicotine pouches posted a sales surge of 26.5%, propelling 5.9% growth in the oral tobacco segment, while cigarette shipment volume dropped 10.2%.
On July 30, Altria Group presented its financial results for the second quarter and first half of 2025, alongside a narrowed full‑year EPS forecast.
In Q2, net revenues declined 1.7% to $6.10 billion, with revenue net of excise taxes rising 0.2% to $5.29 billion.
Reported net earnings fell to $2.38 billion, largely due to the absence of the one‑time IQOS commercialization gain included in 2024 results. However, adjusted diluted EPS climbed 8.3% year‑over‑year to $1.44, reflecting strength in core operations.
For the first six months, net revenues totaled $11.36 billion, down 3.6%, while adjusted diluted EPS rose 7.2% to $2.67, demonstrating continued profitability across Altria’s main segments.
The smokeable products segment saw net revenues fall 2.5% to $5.36 billion, connected to a 10.2% drop in cigarette shipment volumes, though adjusted operating companies income (OCI) rose 4.2% and margins expanded to 64.5% thanks to pricing gains and cost efficiencies.
In contrast, the oral tobacco segment posted strong results. Net income reached $753 million, up 5.9%, with adjusted OCI climbing 10.9%. On! nicotine pouches stood out, shipping 52.1 million cans, up 26.5%, even as traditional moist snuff volumes fell—Copenhagen down 7.7% and Skoal down 8.8%.
The e-cigarette and other category, which includes NJOY ACE, recorded a $8 million net loss and $108 million in operating loss, impacted by an ITC injunction blocking NJOY ACE imports and sales. The company also recorded a non-cash impairment of up to $873 million in the first half for the e-vapor business unit.
Looking ahead, Altria narrowed its full‑year adjusted EPS guidance to $5.35–$5.45, up from 2024’s base of $5.19—implying growth of 3–5%. Management cautioned that earnings momentum may moderate post-2024 stock buybacks and share reduction from legal settlement expirations. The guidance assumes stable tariff impacts, limited disruption from illegal nicotine vapor products, and that NJOY ACE will remain off market through 2025.
Altria reaffirmed expectations for a full-year adjusted tax rate of 23–24%, capital expenditures of $175–$225 million, and depreciation/amortization near $290 million in 2025.
CEO Billy Gifford commented, “In the second quarter, the company continued to pursue its vision while maintaining strong and profitable core businesses. Our smokeable products segment, in particular, showed strong performance and was a key driver of growth this quarter.”
He also highlighted that “through dividends and stock buybacks in the first half of the year, we have delivered over $4 billion in returns to our loyal shareholders.”
