Key Takeaways Altria's smokeable OCI margins rose 2.9 points in Q2 2025 to 64.5%, with a 3.5-point gain in the first half.Gains were driven by 10% net price hikes, lower settlement charges and reduced operating costs.Despite a 10.2% shipment drop in Q2, Altria boosted profitability through pricing and cost savings.Altria Group, Inc.’s ((MO) second-quarter 2025 results showed resilience in its smokeable products segment, where adjusted operating companies income (“OCI”) margins expanded 2.9 percentage points ...

Altria (NYSE: MO ) owns Philip Morris USA, the maker of Marlboro® cigarettes and John Middleton, manufacturer of Black & Mild® cigars. Their smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company, the maker of Copenhagen® and Skoal®, Helix Innovations, the maker of on!® oral nicotine pouches andI am an equities analyst based in South Africa, with focused coverage on the South African equity market. I have ten years experience working as an analyst at three prominent South African fund man ...

Key Takeaways Altria's on! shipments rose 26.5% in Q2, lifting oral tobacco share to 8.7% and boosting margins.Philip Morris lifted 2025 EPS guidance to $7.43-$7.56, targeting 13-15% year-over-year growth.Philip Morris achieved $500M in cost savings in H1 2025, advancing toward a $2B efficiency goal.Altria Group, Inc. ((MO) and Philip Morris International Inc. ((PM) stand as two of the most recognized names in the global tobacco industry. While Altria primarily operates within the United States, Philip Morr ...

Key Takeaways Altria's cigarette shipments fell 10.2% in Q2 and 11.9% in the first half of 2025.Despite volume declines, smokeable segment OCI rose 4.2% in Q2 and 3.5% in the first half.Net price realization climbed 10% in Q2 and 10.4% in the first half, boosting profitability.Altria Group, Inc. ((MO) is currently leaning on its pricing strategy to counter the ongoing decline in cigarette volumes, a persistent challenge in the tobacco industry. The company's second quarter of 2025 results show a significant ...

Key Takeaways Altria reached a new 52-week high of $67.87, rising nearly 15% over the past month.EPS grew 8.3% in Q2 2025 to $1.44, aided by pricing, efficiencies, and share repurchases.on! nicotine pouches surged 26.5% in shipments, lifting oral tobacco income and margins.Altria Group, Inc. (MO) hit a new 52-week high of $67.87 yesterday, a significant milestone that has caught investors’ attention. The company’s strong earnings, growth in oral tobacco, and shareholder returns have set a positive tone for ...

Group 1 - The article provides a top-down analysis of the consumer staples sector, focusing on industry metrics related to value, quality, and momentum [1] - It aims to assist in analyzing sector ETFs, particularly The Consumer Staples ETF [1] - The author, Fred Piard, has over 30 years of experience in technology and has been investing in data-driven systematic strategies since 2010 [1] Group 2 - The article does not provide specific financial data or performance metrics related to the consumer staples sector or individual companies [2][3]

Core Viewpoint - Altria Group has been outperforming the broader market due to its high dividend yield of 6.2%, despite the long-term decline in smoking in the U.S. [2][15] Financial Performance - Altria reported a 10.2% year-over-year decline in cigarette volume, but revenue net of excise taxes remained flat, and operating income grew by 4.4% in the smokeables category [5][6] - The company generated $8.7 billion in free cash flow over the last 12 months, close to a record high, which supports its dividend payments and share buybacks [6][14] Strategic Initiatives - Altria has consistently raised cigarette prices to counteract volume declines, which has helped maintain stable cash flows [4][6] - The company is investing in alternative nicotine products, such as nicotine pouches and vaping, with its On! brand showing a 26.5% year-over-year volume growth [9][10] Dividend and Shareholder Returns - Altria's free cash flow per share was $5.16, providing ample coverage for its $4.08 dividend per share, and the company has reduced its shares outstanding by 14% over the last decade [14][15] - The combination of price increases, margin expansion, and growth from newer categories is expected to sustain Altria's annual dividend increases [15]

Core Viewpoint - Altria Group is experiencing a resurgence in stock performance, with a 30% total return for shareholders in 2025, outperforming the market over the past five years [1] Financial Performance - Altria's dividend yield is currently at 6.25%, significantly higher than the market average, providing stable cash flows to investors [2] - Despite a 10% year-over-year decline in cigarette volumes, Altria's smokeable products segment grew operating earnings by 4.4% to $2.9 billion, driven by price increases and growth in the cigars segment [3][4] - The company has reduced its shares outstanding by 14% over the last five years through stock buybacks, which supports an increase in dividend per share [7][8] Strategic Initiatives - Altria is focusing on alternative nicotine products to drive long-term growth, having acquired the NJOY electronic vaping brand and seeing a 26.5% year-over-year volume growth in its On! nicotine pouch brand [10][11] - Management has time to invest in these new categories before traditional cash flows from cigarettes diminish, but significant growth in these areas will be necessary for future relevance [12] Investment Considerations - Altria is recommended for its current dividend yield and growth potential, while investors should monitor the performance of its new nicotine products for signs of success [13]

Core Viewpoint - Altria has been one of the best performing stocks in the market over the past year despite facing macroeconomic uncertainty, declines in traditional cigarette sales, and regulatory risks [1] Company Performance - Altria's stock performance has outpaced many others in the portfolio and the broader market, indicating strong investor confidence [1] Market Context - The company is navigating challenges such as ongoing declines in traditional cigarette consumption and potential regulatory hurdles, yet it has managed to maintain a strong market position [1]

Core Insights - The USPS has intensified its crackdown on illegal e-cigarette distributors, significantly impacting the multi-billion dollar illegal e-cigarette industry that has been eroding market share from traditional tobacco giants [1] - The USPS has revoked the mailing privileges of Demand Vape, a major e-cigarette distributor, due to evidence of shipping unapproved e-cigarette products, which violates local flavoring bans [1][2] - Major tobacco companies like Altria and British American Tobacco stand to benefit from the USPS's actions against illegal e-cigarettes, as they have been competing for market share against these products [1] Regulatory Environment - As of now, the FDA has only approved 39 e-cigarette products for sale, while enforcement has been weak, allowing unauthorized products to proliferate [2] - The USPS is restricted from mailing e-cigarettes in most cases, only allowing shipments from companies with "mailing exceptions" that comply with all relevant regulations [2] Logistics Challenges - Major logistics companies like FedEx have completely refused to accept e-cigarette shipments, while DHL only accepts pre-approved commercial shipments [3] - The USPS has provided a list of compliant e-cigarette companies to the New York City legal department for verification, further constricting logistics channels for illegal e-cigarette distributors [3] Industry Impact - The illegal e-cigarette market in the U.S. was estimated to be around £6 billion (approximately $8.5 billion) last year, but it is facing unprecedented pressure due to increased tariffs, enhanced port inspections, and FDA crackdowns [4] - The latest USPS measures are expected to exacerbate supply shortages in physical stores, as noted by industry representatives [7] - Demand Vape, as one of the largest e-cigarette distributors in the U.S., services around 5,000 retailers across 49 states, indicating the scale of potential disruption from regulatory actions [7]