Altria Group, Inc. Reports Better-than-Expected Numbers with Q2 Results

Altria Group, Inc. (NYSE: MO) has released its financial results for the second quarter of 2025, reflecting a mix of challenges and growth opportunities. The company also provided updated guidance for the full year, indicating a narrowed earnings range.

Altria Group, Inc. Outperforms EPS Forecast Despite Dip in Net Revenues

Altria Group, Inc. (NYSE: MO) reported its financial performance for the second quarter of 2025, revealing a decrease in net revenues to $6.1 billion, a 1.7% decline from the previous year. Despite this drop, the company’s adjusted diluted earnings per share (EPS) rose by 8.3% to $1.44, exceeding the expected EPS of $1.37. This increase was primarily driven by higher adjusted operating companies income (OCI) and a reduction in the number of shares outstanding.

The company’s reported diluted EPS saw a significant decline of 36.2% to $1.41, attributed largely to a gain in the previous year from the sale of IQOS Tobacco Heating System commercialization rights. However, the adjusted EPS growth indicates that Altria’s core operations are performing well despite the headwinds.

When comparing the current performance against expectations, Altria’s revenue of $6.1 billion surpassed the anticipated $5.19 billion, reflecting a positive outcome in the oral tobacco segment, particularly with the strong performance of the on! nicotine pouches. This segment’s growth helped offset declines in the smokeable products segment, where net revenues fell due to lower shipment volumes.

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Altria Updates Guidance for Full Year 2025

Looking ahead, Altria has narrowed its guidance for the full year 2025, now expecting adjusted diluted EPS to range from $5.35 to $5.45. This forecast represents a growth rate of 3.0% to 5.0% from a base of $5.19 in 2024. The company’s guidance accounts for various factors, including potential impacts from increased tariffs and regulatory actions on combustible and e-vapor products.

Altria’s strategic initiatives, such as the Optimize & Accelerate initiative, are expected to contribute to cost savings, which will be reinvested to support the company’s Vision of transitioning to a smoke-free future. The guidance also considers the dynamic external environment, including economic conditions, consumer behavior shifts, and regulatory developments.

Capital expenditures for the year are projected to be between $175 million and $225 million, with depreciation and amortization expenses estimated at approximately $290 million. The company’s focus on smoke-free products, particularly oral nicotine pouches, continues to be a key driver for future growth as it competes in an evolving market landscape. Overall, Altria remains committed to delivering value to shareholders while navigating the complexities of the tobacco industry.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.