Altria's Fourth-Quarter and Full-Year 2025 Earnings Conference Call January 29, 2026 1 | ALCS | Q4 2025 | 1.29.26 | For Investor Purposes ONLY Safe Harbor Statement Statements, including earnings guidance, in this presentation that are not reported financial results or other historical information are "forward-looking statements" within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates and expectations, and are not guarante ...

Core Viewpoint - Tobacco company Altria has forecasted full-year profit that exceeds analysts' estimates, driven by price increases for its cigarette and oral tobacco products [1] Group 1 - Altria's profit forecast indicates a positive outlook for the company, suggesting strong demand and pricing power in its product categories [1] - The price hikes for both cigarette and oral tobacco products are key factors contributing to the improved profit outlook [1]

Altria Is Losing Ground in the Smokeless Tobacco Race. The Stock Is Falling. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Altria Is Losing Ground in the Smokeless Tobacco Race. The Stock Falls After Earnings.By [Nate Wolf]ShareResize---R ...

The maker of Marlboro cigarettes reports weaker-than-expected quarterly earnings. ...

Core Insights - Altria reported a decline in fourth-quarter profit due to a decrease in cigarette shipment volume, negatively impacting its smokeable product business [1] Financial Performance - The company's fourth-quarter profit was lower compared to previous periods, primarily driven by reduced cigarette shipments [1] Market Trends - The decline in cigarette shipment volume indicates a broader trend affecting the smokeable product market, suggesting potential challenges for the industry [1]

Financial Performance - Altria's adjusted diluted EPS for 2025 increased by 4.4% to $5.42, while reported diluted EPS decreased by 37.0% to $4.12 due to non-cash impairment charges and unfavorable tax items [3][24]. - For Q4 2025, net revenues were $5.846 billion, a decrease of 2.1% compared to Q4 2024, with revenues net of excise taxes at $5.079 billion, down 0.5% [4][24]. - For the full year 2025, net revenues totaled $23,279 million, a decrease of 3.1% from $24,018 million in 2024 [74]. - Net earnings for Q4 2025 dropped to $1,117 million, a significant decline of 63.2% from $3,039 million in Q4 2024 [70]. - 2025 net earnings decreased to $1,117 million, a 63.2% decline from 2024's $3,039 million [81]. - Adjusted net earnings for 2025 were $2,182 million, a slight decrease of 1.4% compared to $2,214 million in 2024 [83]. - The company reported a significant asset impairment of $1,921 million in 2025, impacting net earnings [85]. - The company reported a fair value adjustment for NJOY transaction contingent payments of $25 million [99]. - Total net revenues for the company reached $23,279 million, with revenues net of excise taxes at $20,139 million [102]. Shareholder Returns - The company returned $8 billion to shareholders in 2025 through dividends and share repurchases, with $7 billion in dividends and $1 billion in share repurchases [3][6]. - Altria aims for a progressive dividend growth target of mid-single digits annually through 2028, having increased its dividend by 3.9% in 2025 [10]. Cost Management - The company plans to achieve cumulative cost savings of at least $600 million by the end of 2029 through its Optimize & Accelerate initiative [10]. - The company incurred asset impairment and exit costs of $978 million in 2025, compared to $389 million in 2024 [74]. - The company incurred asset impairment, exit, and implementation costs totaling $2,184 million [102]. Market Performance - Domestic cigarette shipment volume for the smokeable products segment decreased by 7.9% in the fourth quarter of 2025, with total cigarette shipment volume down 10.0% for the full year [38][42]. - Marlboro's retail share of the total cigarette category was 39.8% in Q4 2025, a decrease of 1.5 percentage points compared to the previous year [43][44]. - For oral tobacco products, net revenues increased by 2.0% to $706 million in Q4 2025, while revenues net of excise taxes rose by 2.9% to $682 million [46][47]. - The total oral tobacco products retail share decreased to 30.9% in Q4 2025 from 32.9% in Q3 2025 [98]. Operational Metrics - Altria's total adjusted operating companies income (OCI) margin for 2025 was 62.4%, while the reported OCI margin was 51.1% [12]. - Reported OCI for smokeable products increased by 0.2% to $2.643 billion in Q4 2025, while adjusted OCI decreased by 2.4% to $2.643 billion [35][37]. - Reported operating companies income (OCI) was $10,286 million, while adjusted OCI stood at $12,568 million [102]. - The OCI margin was reported at 51.1%, with adjusted OCI margin at 62.4% [102]. Debt and Assets - Altria's debt-to-Consolidated EBITDA ratio was 2.0x at year-end 2025, aligning with its target [10]. - Total liabilities increased to $38,469 million in 2025 from $37,365 million in 2024 [89]. - Long-term debt rose to $24,140 million in 2025, compared to $23,399 million in 2024 [89]. - Total debt as of December 31, 2025, amounted to $25,709 million, with a cash and cash equivalents balance of $4,474 million [99]. Future Outlook - Altria expects 2026 full-year adjusted diluted EPS to be in the range of $5.56 to $5.72, representing a growth rate of 2.5% to 5.5% from 2025 [3][13]. - The company is focusing on transitioning adult smokers to smoke-free products and exploring new growth opportunities beyond nicotine [57]. - The company plans to continue focusing on operational efficiency and strategic acquisitions to enhance market position [83].

Altria Group, Inc. (NYSE:MO) is one of the 11 Most Profitable Cheap Stocks to Invest In Now. On January 26, UBS increased its price target on Altria Group, Inc. (NYSE:MO) from $63 to $67 and maintained its Buy rating on the stock. The firm noted that risks facing the company, including worries around combustible volume mix, duty drawback benefits, and lower nicotine pouch volumes, are manageable. UBS also noted that while progress in smoke-free products is slow, Altria Group, Inc. (NYSE:MO) is still well ...

Core Insights - Altria Group, Inc. is expected to report its fourth-quarter 2025 earnings on January 29, with revenues projected at $5 billion, reflecting a 2% decline year-over-year, while earnings per share (EPS) is estimated at $1.31, indicating a 1.6% growth from the previous year [1][9] Earnings Performance - Altria has a trailing four-quarter average earnings surprise of 3.1%, with the last quarter's earnings surpassing the Zacks Consensus Estimate by 0.7% [2] - The company currently has an Earnings ESP of +1.54% and a Zacks Rank of 3 (Hold), suggesting a favorable outlook for an earnings beat [4][3] Factors Influencing Q4 Earnings - The fourth-quarter performance is likely influenced by disciplined pricing and effective cost control, despite pressure on domestic cigarette shipment volumes due to inflation [5] - Altria has maintained steady profitability through solid revenue management and disciplined cost control, with pricing gains across core smokeable brands cushioning operating income [6] Oral Tobacco Business - A significant contributor to Altria's earnings is its oral tobacco business, particularly nicotine pouches, which have aided segment profitability despite competitive pressures [7] Stock Performance - Over the past three months, Altria's stock has gained 0.6%, underperforming the Zacks Tobacco industry's 12.1% increase and the Consumer Staples sector's 3.7% growth [8] - Compared to peers, Altria's stock performance has lagged, with competitors like Philip Morris and British American Tobacco showing higher gains [8] Valuation - Altria's shares are trading at a forward 12-month price-to-earnings ratio of 11.39, below the industry average of 15.48, indicating compelling value for investors [10] - The valuation gap is notable when compared to key competitors, which have significantly higher P/E ratios [11] Investment Outlook - Altria demonstrates resilience through effective pricing strategies and cost management, offsetting volume pressures in its core cigarette business [12] - The expanding smoke-free portfolio, particularly nicotine pouches, is a key driver for margin support and earnings stability, making Altria an appealing defensive consumer staples stock [12]

Virginia-based Altria Group, Inc. (MO) manufactures and sells smokeable and oral tobacco products. Valued at $104.1 billion by market cap, the company offers cigarettes primarily under the Marlboro brand, large cigars and pipe tobacco under the Black & Mild brand, moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands, and more. Shares of this leading tobacco company have outperformed the broader market over the past year. MO has gained 19% over this time frame, ...

Core Viewpoint - Investing in dividend stocks provides a reliable income stream that can be reinvested or used for expenses, allowing investors to hold shares without selling them [1] Group 1: Consumer Spending and Dividend Stocks - Consumer spending is crucial for the economy, and high-quality dividend stocks can be found in consumer-facing companies with strong brands [2] - Examples of such companies include Costco Wholesale, The Coca-Cola Company, and Altria Group, each representing different investment styles [2] Group 2: Costco Wholesale - Costco Wholesale is a leading retailer with a loyal customer base, known for its membership model and bulk merchandise sales [3] - The company has a market capitalization of $431 billion, with a current stock price of $970.66 and a dividend yield of 0.52% [4][5] - Costco has paid and raised its dividend for 20 consecutive years, spending only a quarter of its earnings on dividends, indicating potential for future growth [5] Group 3: The Coca-Cola Company - Coca-Cola is a global beverage leader with a strong track record of dividend growth, having increased its dividend for 62 consecutive years [6] - The company has a market capitalization of $316 billion, with a current stock price of $73.55 and a dividend yield of 2.77% [7][8] - Coca-Cola's growth is supported by a rising global population and brand recognition, allowing for continued expansion in a fragmented beverage market [8] Group 4: Altria Group - Altria Group, known for its Marlboro cigarettes, has maintained profitability despite declining cigarette sales due to its pricing power [9] - The company has a market capitalization of $107 billion, with a current stock price of $63.62 and a dividend yield of 6.54% [10] - Altria has achieved 54 consecutive annual dividend increases, providing a substantial yield despite low single-digit earnings growth [10]