Financial Data and Key Metrics Changes - In 2025, adjusted diluted earnings per share grew by 4.4% and the company returned $8 billion to shareholders through dividends and share repurchases combined [4][24] - The smokable product segment delivered over $11 billion in adjusted operating income (OCI) for the full year, expanding adjusted OCI margins by 1.8 percentage points to 63.4% [16] - For the fourth quarter, adjusted OCI declined by 2.4%, and adjusted OCI margins contracted by 0.8 percentage points to 60.4% [16] Business Line Data and Key Metrics Changes - Domestic cigarette volumes declined by 7.9% in the fourth quarter and 10% for the full year [16] - The oral tobacco product segment retail share was 29.6% for the fourth quarter and 31.9% for the full year [21] - Total segment reported shipment volume decreased 6.3% for the fourth quarter and 5.5% for the full year [21] Market Data and Key Metrics Changes - The estimated number of adult consumers in the e-vapor and oral tobacco categories grew to almost 30 million, reflecting the potential for tobacco harm reduction in the U.S. [6] - The e-vapor category grew approximately 15% in 2025, with illicit products representing approximately 70% of the category [7][8] - The nicotine pouch category grew an estimated 14% over the past six months, with oral nicotine pouches now representing nearly 57% of the total oral category [9] Company Strategy and Development Direction - The company is focused on advancing its smoke-free portfolio and building new pathways for long-term growth in international modern oral and non-nicotine innovations [15] - Strategic investments in retail merchandising and product innovation are planned to support the national launch of on! PLUS in 2026 [12] - The company intends to maintain a measured approach to investments in e-vapor until the regulatory framework is functioning effectively [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the primary driver of industry and smoke-free growth continues to be the widespread availability of illicit flavored, disposable e-vapor products [6] - The company expects to deliver 2026 full year adjusted diluted EPS in a range of $5.56-$5.72, representing a growth rate of 2.5%-5.5% from a $5.42 base in 2025 [14] - Management expressed confidence in the company's strategy and the opportunities ahead, emphasizing the importance of responsible participation in the e-vapor category [15] Other Important Information - The company recorded non-cash impairment charges of $1.3 billion related to e-vapor definite-lived intangible assets and goodwill [22] - The company paid $7 billion in dividends in 2025, marking its 60th increase in the last 56 years [24] Q&A Session Summary Question: Can you provide any color on the scope of the import/export program? - Management indicated that the program involves both upfront investments and the opportunity for duty drawback, setting up manufacturing capabilities for international markets [31] Question: Is the elevated CapEx associated with the investments for import/export a one-time increase? - Management confirmed that the primary driver of the increase is the investments for the import/export business, but they are not guiding for future CapEx [33] Question: How is the promotional strategy behind Basic affecting net price realization? - Management clarified that the strategy around Basic is independent of the duty drawback and is aimed at capturing consumers under economic pressure [40] Question: Are there any signs of increased smoking incidence among younger legal-aged nicotine users? - Management stated that there are no trends indicating increased smoking incidence among younger cohorts, emphasizing the need for expedited product authorizations [50] Question: What is the pricing strategy for on! PLUS? - Management believes on! PLUS is a differentiated product that commands a premium in the marketplace, with various introductory price promotions planned [51]

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 ...

Financial Performance & Guidance - The company is targeting another year of best-in-class top and bottom-line growth, driven by volumes, pricing, mix, and efficiencies while investing for growth[3] - The company confirms full-year adjusted diluted EPS guidance of $7.36 to $7.49, representing 12% to 14% growth in USD[3] - Excluding currency impacts, the adjusted diluted EPS growth is expected to be 10.5% to 12.5%[3] - Reported diluted EPS forecast for 2025 is $7.01 to $7.14, compared to $4.52 in 2024[6] - Adjusted diluted EPS for 2025 is projected to be $7.36 to $7.49, compared to $6.57 in 2024, a growth of 12% to 14%[6] Business Strategy & Outlook - The company is increasingly deploying a multi-category strategy across markets with premium smoke-free alternatives like IQOS, ZYN, and VEEV[3] - The company continues to expect low single-digit combustible volume declines for 2025[3] - The company is well-positioned to navigate external volatility and is on track for strong H1 and FY performance[3] Risk Factors - The company's business is subject to various risks, including excise tax increases, marketing and regulatory restrictions, health concerns, litigation, and intense competition[2] - Global and individual country economic, regulatory, and political developments, natural disasters, and conflicts, including the impact of Russia's invasion of Ukraine, also pose risks[2] - Unfavorable currency exchange rates, adverse changes in corporate tax laws, trade tariffs, and the cost and availability of raw materials are additional risk factors[2]