Altria Group (MO) investor relations material

Executive summary

• Adjusted diluted EPS increased 8.3% to $1.44 in Q2 and 7.2% to $2.67 for the first half, driven by higher operating companies income and share repurchases.

• Net earnings for the first half were $3.46B, down 41.8% year-over-year due to a prior-year gain from the IQOS rights sale and a large e-vapor goodwill impairment.

• Over $4B was returned to shareholders in the first half through $3.5B in dividends and $600M in share repurchases.

• The company continued to focus on smoke-free alternatives, with ON! oral nicotine pouches and regulatory advocacy supporting growth.

• Faced headwinds from declining cigarette volumes, increased discount brand share, and regulatory pressures, but benefited from higher pricing and cost controls.

Financial highlights

• Net revenues for the first half were $11.36B, down 3.6% year-over-year; Q2 net revenues were $6.10B, down 1.7% from Q2 2024.

• Operating income for the first half was $5.02B, down 3.6% year-over-year; Q2 operating income rose 18.9% to $3.3B.

• Gross margin improved to 63.1% in Q2 2025 from 59.2% in Q2 2024.

• Paid $3.5B in dividends and repurchased 10.4M shares for $600M in the first half; $400M remains under current repurchase program.

• Adjusted diluted EPS for the first half was $2.67 (up 7.2% year-over-year).

Outlook and guidance

• 2025 full-year adjusted diluted EPS guidance raised and narrowed to $5.35–$5.45, a 3–5% increase from $5.19 in 2024.

• Guidance reflects expected moderation in EPS growth as benefits from share repurchases and legal fund expiration are lapped.

• Management expects continued pressure on premium brand volumes due to inflation, discount brand share, and regulatory actions, but projects stable liquidity and ongoing cost discipline.

• Share repurchase program expected to complete by year-end, with $400M remaining.

• 2025 capital expenditures expected at $175–$225M; depreciation and amortization at ~$290M.