Altria(US:MO)2026-01-29 12:04Financial 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].