Altria Group (NYSE:MO) reported a resilient finish to 2025, navigating a structural decline in the combustible cigarette market with aggressive pricing and a rapidly expanding smoke-free portfolio.
For the fourth quarter, the Richmond, Virginia-based company posted adjusted diluted earnings per share of $1.30, in line with analyst estimates.
While net revenues for the quarter fell 2.1% to $5.85 billion, revenues net of excise taxes remained stable at $5.08 billion, buoyed by the high-margin performance of oral tobacco products.
For the full year 2025, Altria reported adjusted diluted EPS of $5.42, a 4.4% increase over the previous year.
The company’s "Vision 2030" pivot toward a smoke-free future showed significant progress; shipment volumes for on! nicotine pouches surged, helping the oral tobacco segment maintain an industry-leading adjusted OCI margin of over 69%.
Despite the success of the smoke-free transition, the company recorded a non-cash impairment charge earlier in the year related to its e-vapor unit, which contributed to a decline in full-year GAAP reported earnings to $4.12 per share.
Looking ahead, Altria provided full-year 2026 adjusted diluted EPS guidance in a range of $5.56 to $5.72, representing a growth rate of 2.5% to 5.5%.