Altria Group Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did MO Beat Earnings? Q3 2025 Results
Altria Group delivered a mixed third quarter, managing a narrow earnings beat against persistent top-line pressure as the tobacco giant continues navigating structural headwinds in its core cigarette business. Adjusted diluted EPS came in at $1.45, edging past the $1.4482 consensus estimate by 0.12%, lifted by margin expansion and a reduced share count — a dynamic that has become a reliable earnings lever for the company. Revenue net of excise taxes, however, <a href="https://247wallst.com/investing/2025/10/30/altria-group-reports-q3-beats-but-sales-slow/">fell short of expectations</a>, declining 1.7% year-over-year to $5.25 billion against a $5.31 billion consensus, as domestic cigarette shipment volume slumped 8.2% amid the unchecked proliferation of illicit flavored disposable e-vapor products and consumer downtrading pressure. Marlboro's retail share slipped 1.2 points to 40.4% even as smokeable segment margins expanded to 64.4%. On the strength of its earnings performance, management narrowed full-year 2025 adjusted EPS guidance to $5.37–$5.45, raising the low end to reflect 3.5% to 5.0% growth, while the Board doubled its share repurchase authorization to $2 billion through December 2026.
- Higher pricing in smokeable and oral tobacco products offsetting volume declines
- Lower per unit settlement charges in smokeable products
- Fewer shares outstanding from share repurchase program
- Adjusted OCI margin expansion in both smokeable (64.4%) and oral tobacco (69.2%) segments
- Lower adjusted tax rate
“Altria continued to build significant momentum in the third quarter with exciting progress across our businesses. Our core tobacco businesses remained resilient; we advanced our smoke-free portfolio; and we opened new pathways for long-term adjacent growth in international modern oral and U.S. non-nicotine innovation.”
Altria CEO, on the earnings call
Forward Guidance & Outlook
Altria narrowed its 2025 full-year adjusted diluted EPS guidance to $5.37–$5.45, raising the lower end, representing 3.5% to 5.0% growth from a 2024 base of $5.19. EPS growth is expected to moderate in Q4 as the company laps the lower share count from the 2024 accelerated share repurchase program and the benefit of the MSA legal fund expiration. Guidance incorporates tariff impacts, assumes limited benefit from illicit product enforcement, and assumes NJOY ACE does not return to market in 2025. The company expects an adjusted effective tax rate of 23%–24%, capital expenditures of $175–$225 million, and depreciation and amortization of approximately $290 million. Altria targets mid-single digit annual dividend per share growth through 2028.
MO YoY Financials
MO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.