Core Insights - Altria is transitioning from traditional tobacco products to innovative alternatives, emphasizing products like on! PLUS and advocating for stronger enforcement against illicit markets in the U.S. [1] - The company continues to provide strong cash returns to shareholders while navigating this transition [1] - CEO Billy Gifford will retire in May, with Sal Mancuso set to take over leadership [1] Company Overview - Altria has been a leader in the tobacco industry for decades, known for its iconic Marlboro brand [1] - The management team includes key figures such as Sal Mancuso (CFO), Heather Newman (Chief Strategy and Growth Officer), and Bob McCarter (General Counsel) [3] Financial Considerations - Future dividend payments and share repurchases are subject to the discretion of the Board [4] - The presentation includes discussions on non-GAAP financial measures, with further explanations available on Altria's website [4]

Altria Conference Call Summary Company Overview - **Company**: Altria Group, Inc. - **Industry**: Tobacco and Nicotine Products Key Points Transition to Smoke-Free Products - Altria is transitioning smokers to a smoke-free future while competing for existing smoke-free nicotine consumers and exploring growth opportunities beyond the U.S. and nicotine [3][4] - The U.S. nicotine space is evolving with innovative smoke-free products driving change, creating unprecedented opportunities for Altria's businesses [4] Market Dynamics - In 2025, growth in e-vapor and oral tobacco offset cigarette industry volume declines, leading to a total equivalized nicotine volume growth of approximately 2.5% last year [5] - Over half of the 55 million U.S. nicotine consumers now use smoke-free products, with more than one-third using them exclusively [5] Consumer Segmentation - Altria identifies three consumer groups: 1. **Traditionalists**: Loyal to established brands like Marlboro and Copenhagen [6][7] 2. **Transitioners**: Open to switching to smoke-free alternatives [8] 3. **Variety Seekers**: Early adopters of innovation, seeking different product forms and flavors [9] Product Performance - The oral tobacco category grew by 12.5% last year, with nicotine pouches driving over 40% growth [10] - Altria's oral tobacco products segment grew adjusted OCI by a CAGR of 1.3% over the past five years [10] - The introduction of on! PLUS, a premium nicotine pouch, is expected to meet evolving consumer preferences [11][12] Regulatory Environment - Altria is advocating for improved enforcement against illicit markets, which represent a significant portion of the e-vapor category [17][18] - The company is optimistic about FDA authorizations for new products, including additional flavors and strengths for on! PLUS [13][14] Financial Performance - Altria's smokable product segment has grown adjusted OCI by more than $950 million over the past five years, with adjusted OCI margins expanding to 63.4% [26] - The company has delivered over $100 billion in cash returns to shareholders since the 2008 PMI spinoff, with a recent quarterly dividend increase of 3.9% [35][36] Future Growth Opportunities - Altria is exploring international and non-nicotine opportunities, including energy products through collaboration with Proper Wild [33][34] - The company aims to commercialize at least five non-nicotine products by 2028, with strong consumer interest in energy shots and gummies [34][35] Strategic Initiatives - The Optimize and Accelerate initiative aims to generate at least $600 million in savings to reinvest in growth, enhancing operational and financial flexibility [21][22] - Altria is modernizing its marketing strategies to engage consumers through new channels, including social media and in-person events [14][15] Conclusion - Altria is well-positioned to capture the growing smoke-free opportunity while maintaining strong cash returns and shareholder value through its traditional tobacco businesses [38]

1 | ALCS | CAGNY | 2.18.26 | For Investor Purposes ONLY CAGNY 2026 Safe Harbor Statement ALCS | CAGNY | 2.18.26 | For Investor Purposes ONLY ALCS | CAGNY | 2.18.26 | For Investor Purposes ONLY Statements 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 guarantee ...

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] - 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% [18] - For the fourth quarter, adjusted OCI declined by 2.4%, and adjusted OCI margins contracted by 0.8 percentage points to 60.4% [18] Business Line Data and Key Metrics Changes - Domestic cigarette volumes declined by 7.9% in the fourth quarter and 10% for the full year [18] - The oral tobacco product segment retail share was 29.6% for the fourth quarter and 31.9% for the full year [23] - Total segment reported shipment volume decreased 6.3% for the fourth quarter and 5.5% for the full year [22] 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. [7] - The e-vapor category grew approximately 15% in 2025, with illicit products representing approximately 70% of the category [8] - The nicotine pouch category drove overall oral tobacco volume growth, which increased an estimated 14% over the past six months [10] Company Strategy and Development Direction - The company is focused on advancing its smoke-free portfolio and building a portfolio of FDA-authorized smoke-free products for adult smokers [16] - Strategic collaborations, such as with KT&G, aim to enhance international modern oral and U.S. non-nicotine growth [5] - The company plans to maintain a measured approach to investments in e-vapor until the regulatory framework is functioning effectively [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the growth in disposable vapers moderated in 2025 compared to the prior year, indicating a potential stabilization in the market [9] - The company expects to deliver 2026 full year adjusted diluted EPS in a range of $5.56-$5.72, reflecting a growth rate of 2.5%-5.5% from a $5.42 base in 2025 [16] - Management expressed confidence in the company's strategy and the opportunities ahead, emphasizing the importance of responsible participation in the e-vapor category [17] Other Important Information - The company recorded non-cash impairment charges of $1.3 billion related to e-vapor definite-lived intangible assets and goodwill [23] - The company paid $7 billion in dividends in 2025, marking its 60th increase in the last 56 years [25] - The total debt-to-EBITDA ratio as of December 31 was 2x, in line with the company's target [25] 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 [32] Question: Is the elevated CapEx associated with the investments for import/export? - Management confirmed that the primary driver of the increase in CapEx is the investments for the import/export business, but they did not provide guidance for future CapEx [34] 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 [41] Question: Are there any signs of increased smoking incidence among younger legal-aged nicotine users? - Management stated that there are no trends indicating increased incidence among younger cohorts, emphasizing the need for expedited authorization of smoke-free products [52] Question: What is the pricing strategy for on! PLUS? - Management believes that on! PLUS is a differentiated product that commands a premium in the marketplace, with various introductory price promotions planned [53]

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] - 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% [18] - For the fourth quarter, adjusted OCI declined by 2.4%, and adjusted OCI margins contracted by 0.8 percentage points to 60.4% [18] Business Line Data and Key Metrics Changes - Domestic cigarette volumes declined by 7.9% in the fourth quarter and 10% for the full year [18] - The oral tobacco product segment reported a shipment volume decrease of 6.3% for the fourth quarter and 5.5% for the full year [22] - Nicotine pouches drove overall oral tobacco volume growth, which increased an estimated 14% over the past six months [10] 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. [7] - The e-vapor category grew approximately 15% in 2025, with illicit products representing approximately 70% of the category [8] - The nicotine pouch category saw a retail share of 29.6% for the fourth quarter and 31.9% for the full year [23] Company Strategy and Development Direction - The company is focused on advancing its smoke-free portfolio and building a portfolio of FDA-authorized smoke-free products for adult smokers [16] - Strategic collaborations, such as with KT&G, aim to enhance international modern oral and U.S. non-nicotine growth [5] - The company plans to maintain a measured approach to investments in e-vapor until the regulatory framework is functioning effectively [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the growth in disposable vapers moderated in 2025, with a 10% increase compared to over 40% in 2024 [9] - 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 [16] - Management expressed confidence in the company's strategy and the opportunities ahead, emphasizing the importance of responsible participation in the e-vapor category [17] Other Important Information - The company recorded non-cash impairment charges of $1.3 billion related to e-vapor definite-lived intangible assets and goodwill [23] - The company paid $7 billion in dividends in 2025, marking its 60th increase in the last 56 years [25] - The total debt-to-EBITDA ratio as of December 31 was 2x, in line with the company's target [25] 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 opportunities for duty drawback, setting up manufacturing capabilities for international markets [32] Question: Is the increase in CapEx a one-time increase or a multiyear higher level? - Management confirmed that the increase is primarily driven by investments for the import/export business, but future CapEx guidance was not provided [34] Question: How is the promotional strategy behind Basic affecting net price realization? - Management clarified that the strategy for Basic is independent of the duty drawback and is aimed at capturing consumers under economic pressure [41] Question: What is the strategy for Marlboro given the drop in retail share? - Management emphasized the importance of maximizing profitability while making appropriate investments in Marlboro and growth categories [46] Question: Are there any trends in smoking incidence among younger legal-aged nicotine users? - Management noted that there are no significant trends observed in the data regarding increased smoking incidence among younger cohorts [52] 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 [53]

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 ...

Core Insights - Altria Group, Inc. is shifting its business focus towards smoke-free products to counteract declining combustible volumes, with significant progress noted in the third quarter of 2025, particularly in oral nicotine and heated tobacco segments [2][5] Smoke-Free Product Performance - The on! nicotine pouch brand maintained a stable retail market share of 8.7% in Q3 2025, with year-to-date shipment volumes increasing by 14.8% to 133.6 million cans, indicating strong performance in a competitive market [3][9] - Altria has launched on! PLUS in select U.S. markets, targeting both existing smokeless users and consumers switching from other brands, which is seen as a strategic move to enhance its oral nicotine portfolio [4][9] Regulatory Developments - Altria has reached a significant regulatory milestone by filing a combined premarket tobacco product application and modified risk tobacco product application with the FDA for the Ploom device and Marlboro heated tobacco sticks, marking a crucial step in introducing Ploom to American consumers [5] Competitive Landscape - Philip Morris International Inc. reported a 16.6% increase in smoke-free shipment volumes in Q3 2025, with smoke-free products now constituting 41% of its total net revenues, showcasing strong growth in this sector [6] - Turning Point Brands, Inc. experienced a remarkable 627.6% year-over-year increase in Modern Oral sales, which accounted for 30.8% of its total business, reflecting the growing importance of oral nicotine in its smoke-free strategy [7] Financial Performance and Valuation - Altria's shares have increased by 8.3% over the past month, slightly underperforming the industry growth of 9.2% [8] - The company trades at a forward price-to-earnings ratio of 11.09X, which is lower than the industry average of 15.3X, indicating potential value [10] - The Zacks Consensus Estimate projects year-over-year earnings growth of 6.3% for the current financial year and 2.3% for the next [11]

Core Insights - Altria Group, Inc. has experienced an 8.2% decline in its stock over the past three months, contrasting with the positive performance of the broader market and its industry peers [1][9] - The company has underperformed compared to key competitors, with Turning Point Brands, British American Tobacco, and Philip Morris International showing gains of 22.6%, 11%, and 4.5% respectively [2] Performance Analysis - Altria's domestic cigarette shipment volumes fell by 8.2% in Q3 2025 and 10.6% year-to-date, which is greater than the overall industry's decline [7] - Despite the volume decline, Altria reported a 3.6% increase in Q3 adjusted earnings per share (EPS) to $1.45, with smokeable product margins holding steady at 64.4% [9][11] Competitive Landscape - Increased competition in the smoke-free product segment has led to heightened promotional activities, affecting pricing and creating shipment volatility [8] - The on! nicotine pouch brand has shown stable retail demand, but concerns about growth visibility and margin maintenance persist due to competitive pressures [8] Regulatory Environment - Ongoing regulatory and legal uncertainties, particularly in the e-vapor segment, continue to impact investor confidence [10] Financial Valuation - Altria is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 10.52, which is below the industry average of 14.37 and the S&P 500's 23.45, indicating potential undervaluation [13] Earnings Estimates - The Zacks Consensus Estimate for Altria's EPS for 2025 has increased by 1 cent to $5.44, while the estimate for 2026 has decreased by 1 cent to $5.56, reflecting a steady outlook with projected earnings growth of 6.3% in 2025 and 2.3% in 2026 [16]

Core Insights - Altria Group, Inc. is adjusting its growth strategy in response to declining cigarette demand, focusing on a diversified smoke-free portfolio to stabilize growth over time [1][4] Group 1: Altria's Strategy and Performance - Domestic cigarette shipment volumes for Altria fell by 8.2% in Q3 2025, influenced by the rise of flavored disposable e-vapor products and tighter consumer spending [1][8] - Altria is emphasizing a diversified smoke-free portfolio that includes oral nicotine, e-vapor, and heated tobacco to adapt to changing consumer preferences [1][4] - The oral nicotine segment is showing the strongest progress, with Altria's nicotine pouch brand, on!, holding an 8.7% retail share of the total oral tobacco category in the first nine months of 2025 [2] - Altria launched on! PLUS, a premium nicotine pouch aimed at traditional smokeless tobacco users and competing pouch consumers [2][8] - The company is facing challenges in the e-vapor market as it integrates NJOY, while also advancing its heated tobacco efforts through the Horizon joint venture [3][4] Group 2: Competitive Landscape - Philip Morris International Inc. is also shifting towards smoke-free products, with these products accounting for approximately 41% of its net revenues in Q3 2025, and shipment volumes increasing by 16.6% year over year [5] - Turning Point Brands, Inc. reported a significant increase in Modern Oral sales, which surged by 627.6% year over year to $36.7 million, representing about 30.8% of total net sales [6] Group 3: Financial Metrics and Estimates - Altria's shares have gained 0.6% over the past month, compared to the industry's growth of 5.2% [7] - The forward price-to-earnings ratio for Altria is 10.3X, lower than the industry's average of 14.35X [9] - The Zacks Consensus Estimate for Altria's earnings implies year-over-year growth of 6.3% for 2025 and 2.3% for 2026 [10]