Altria Reports 2025 Third-Quarter and Nine-Months Results; Announces Expanded Share Repurchase Program; Narrows 2025 Full-Year Earnings Guidance
RICHMOND, Va.--( BUSINESS WIRE)--Altria Group, Inc. (NYSE: MO) today reports our 2025 third-quarter and nine-months business results, announces the expansion of our existing share repurchase program and narrows our guidance for 2025 full-year adjusted diluted earnings per share (EPS).
“Altria continued to build significant momentum in the third quarter with exciting progress across our businesses,” said Billy Gifford, Altria’s Chief Executive Officer. “Our core tobacco businesses remained resilient; we advanced our smoke-free portfolio; and we opened new pathways for long-term adjacent growth in international modern oral and U.S. non-nicotine innovation.”
“We also continue to demonstrate our commitment to returning value to our shareholders. In August, we announced our 60th dividend increase in 56 years, and yesterday, our Board authorized an expansion of our share repurchase program.”
“We are raising the lower-end of our 2025 full-year guidance and now expect to deliver adjusted diluted EPS in a range of $5.37 to $5.45. This range represents a growth rate of 3.5% to 5.0% from a base of $5.19 in 2024.”
Altria Headline Financials 1
($ in millions, except per share data)
Q3 2025
Change vs.
Q3 2024
Q3 YTD 2025
Change vs.
Q3 YTD 2024
Net revenues
$6,072
(3.0)%
$17,433
(3.4)%
Revenues net of excise taxes
$5,251
(1.7)%
$15,060
(1.8)%
Reported tax rate
22.8%
(1.4) pp
26.0%
1.6 pp
Adjusted tax rate 2
23.1%
(0.7) pp
23.3%
(0.9) pp
Reported diluted EPS
$1.41
5.2%
$3.45
(27.4)%
Adjusted diluted EPS 2
$1.45
3.6%
$4.12
5.9%
1 “Adjusted” financial measures presented in this release exclude the impact of special items. See “Basis of Presentation” for more information and see the schedules to this press release for reconciliations to corresponding GAAP measures.
2 Prior period amounts have been recast to conform with current period presentation for amortization expense associated with definite-lived intangible assets that were not previously identified as special items and that are now excluded from Altria’s adjusted financial measures. For more information, see 2025 Full-Year Guidance below.
As previously announced, a conference call with the investment community and news media will be webcast on October 30, 2025 at 9:00 a.m. Eastern Time. Access to the webcast is available at www.altria.com/webcasts.
Cash Returns to Shareholders
Share Repurchase Program
Dividends
Smoke-Free Portfolio Update
Strategic Relationship with KT&G Corporation (KT&G)
2025 Full-Year Guidance
We narrow our guidance for 2025 full-year adjusted diluted EPS to be in a range of $5.37 to $5.45, representing a growth rate of 3.5% to 5.0% from a base of $5.19 in 2024. We expect EPS growth to moderate in the fourth quarter as we lap the lower share count associated with the 2024 accelerated share repurchase program completion and the benefit of the Master Settlement Agreement legal fund expiration.
Our guidance contemplates the current estimated impact of increased tariffs on our costs, based on presently available information. In addition, our guidance assumes limited impact on combustible and e-vapor product volumes from enforcement efforts against products that have evaded the regulatory process (illicit) and that NJOY ACE does not return to the marketplace this year. The guidance range also includes the reinvestment of anticipated cost savings related to our previously announced Optimize & Accelerate initiative (Initiative) and lower expected net periodic benefit income.
While our 2025 full-year adjusted EPS guidance accounts for a range of scenarios, the external environment remains dynamic. We will continue to monitor conditions related to (i) the economy, including the cumulative impact of inflation and increased tariffs, (ii) adult tobacco consumer (ATC) dynamics, including purchasing patterns and adoption of smoke-free products, (iii) illicit product enforcement and (iv) regulatory, litigation and legislative developments.
Our 2025 full-year adjusted diluted EPS guidance range includes planned investments in support of our Vision, such as (i) marketplace activities in support of our smoke-free products and (ii) continued smoke-free product research, development and regulatory preparation expenses. This guidance range excludes the per share impacts related to charges associated with our Initiative.
We continue to expect our 2025 full-year adjusted effective tax rate to be in a range of 23% to 24%, our 2025 capital expenditures to be between $175 million and $225 million and our 2025 depreciation and amortization expenses to be approximately $290 million.
Our full-year adjusted diluted EPS guidance range and full-year forecast for our adjusted effective tax rate exclude the impact of certain income and expense items that our management believes are not part of underlying operations. These items may include, for example, loss on early extinguishment of debt, restructuring charges, asset impairment charges, acquisition, disposition and integration-related items, equity investment-related special items, certain income tax items, charges associated with tobacco and health and certain other litigation items, resolutions of certain non-participating manufacturer (NPM) adjustment disputes under the Master Settlement Agreement (NPM Adjustment Items) and amortization of intangibles. Beginning in the first quarter of 2025, we changed our treatment of our amortization of intangibles, which was previously included in our adjusted results, including adjusted net earnings and adjusted diluted EPS, and now treat this expense as a special item and exclude it from our adjusted results. Net revenues generated from these definite-lived intangible assets during the periods presented, if applicable, are included in our adjusted financial measures. See Table 1 below for the income and expense items for the third quarter and first nine months of 2025.
Our management cannot estimate on a forward-looking basis the impact of certain income and expense items, including those items noted in the preceding paragraph, on our reported diluted EPS or our effective tax rate because these items, which could be significant, may be unusual or infrequent, are difficult to predict and may be highly variable. As a result, we do not provide a corresponding U.S. generally accepted accounting principles (GAAP) measure for, or reconciliation to, our adjusted diluted EPS guidance or our adjusted effective tax rate forecast.
ALTRIA GROUP, INC.
See “Basis of Presentation” below for an explanation of financial measures and reporting segments discussed in this release.
Financial Performance
Third Quarter
First Nine Months
Table 1 - Altria’s Adjusted Results
Third Quarter
Nine Months Ended September 30,
2025
2024
Change
2025
2024
Change
Reported diluted EPS
$
1.41
$
1.34
5.2
%
$
3.45
$
4.75
(27.4
)%
NPM Adjustment Items
—
(0.01
)
—
(0.01
)
Acquisition and disposition-related items
—
0.02
0.05
(1.07
)
Asset impairment, exit and implementation costs
—
—
0.53
0.15
Tobacco and health and certain other litigation items
—
0.01
0.02
0.04
Amortization of intangibles
0.02
0.02
0.05
0.05
ABI-related special items
0.02
0.01
0.02
(0.01
)
Cronos-related special items
0.01
—
—
0.01
Income tax items
(0.01
)
0.01
—
(0.02
)
Adjusted diluted EPS 1
$
1.45
$
1.40
3.6
%
$
4.12
$
3.89
5.9
%
1 Prior period amounts have been recast to conform with current period presentation for amortization expense associated with definite-lived intangible assets that were not previously identified as special items and that are now excluded from Altria’s adjusted financial measures. For further discussion of our special items, see the 2025 Full-Year Guidance section above.
Note: For details of pre-tax, tax and after-tax amounts, see Schedules 6, 7, 8 & 9.
Special Items
The EPS impact of the following special items is shown in Table 1 and Schedules 6, 7, 8 and 9.
Acquisition and Disposition-Related Items
In the first nine months of 2025, we recorded net pre-tax expense items of $96 million (or $0.05 per share), including $71 million related to the International Trade Commission’s (ITC) exclusion order and cease-and-desist orders prohibiting the importation and sale of NJOY ACE in the United States. The expenses related to the ITC orders were partially offset by insurance recoveries from insurance contracts associated with the acquisition of NJOY. Also included is a non-cash, pre-tax charge of $25 million related to a change in the fair value of the contingent payments associated with the acquisition of NJOY.
In the third quarter of 2024, we recorded pre-tax expenses of $44 million (or $0.02 per share) for NJOY acquisition-related costs. In the first nine months of 2024, we recorded net pre-tax income of $2.5 billion (or $1.07 per share) of acquisition and disposition-related items, primarily related to a pre-tax gain of $2.7 billion upon the assignment of the IQOS Tobacco Heating System commercialization rights to Philip Morris International Inc. in April 2024, partially offset by pre-tax expenses associated with the acquisition of NJOY, including a pre-tax charge of $140 million related to a change in the fair value of the contingent payments.
Asset Impairment, Exit and Implementation Costs
In the first nine months of 2025, we recorded pre-tax charges of $916 million (or $0.53 per share), primarily due to a non-cash impairment charge of $873 million to the e-vapor reporting unit goodwill in our all other category. There was no income tax benefit associated with the impairment of the e-vapor reporting unit goodwill because the impairment is non-deductible for tax purposes.
In the first nine months of 2024, we recorded a non-cash, pre-tax charge of $354 million (or $0.15 per share) for an impairment of the Skoal trademark.
Tobacco and Health and Certain Other Litigation Items
In the first nine months of 2025, we recorded pre-tax charges of $48 million (or $0.02 per share) for tobacco and health and certain other litigation items and related interest costs.
In the first nine months of 2024, we recorded pre-tax charges of $90 million (or $0.04 per share) for tobacco and health and certain other litigation items and related interest costs.
Amortization of Intangibles
In the third quarter and first nine months of 2025, we recorded pre-tax amortization expenses of definite-lived intangible assets of $38 million (or $0.02 per share) and $112 million (or $0.05 per share), respectively.
In the third quarter and first nine months of 2024, we recorded pre-tax amortization expenses of definite-lived intangible assets of $38 million (or $0.02 per share) and $102 million (or $0.05 per share), respectively.
ABI-Related Special Items
In the third quarter and first nine months of 2025, we recorded net pre-tax losses of $34 million (or $0.02 per share) and $36 million (or $0.02 per share), respectively, for ABI-related special items, primarily related to mark-to-market losses on certain ABI financial instruments associated with its share commitments.
In the first nine months of 2024, we recorded net pre-tax income of $39 million (or $0.01 per share) for ABI-related special items, primarily related to our pre-tax gain on the sale of a portion of our investment in ABI, net of transaction costs, partially offset by mark-to-market losses on certain ABI financial instruments associated with its share commitments.
The ABI-related special items included our respective share of the amounts recorded by ABI and additional adjustments related to (i) the conversion of ABI-related special items from international financial reporting standards to GAAP and (ii) adjustments to our investment required under the equity method of accounting.
Income Tax Items
In the third quarter of 2025, we recorded income tax items of $20 million (or $0.01 per share), primarily due to an income tax benefit from tax reserves, which includes a favorable rate differential associated with certain cross-border taxes, related to an unfavorable federal court ruling we received in September 2025 concerning a change in the application of foreign attribution rules relevant to our investment in ABI, partially offset by tax expense associated with the increase of a valuation allowance related to our unrecognized capital losses.
In the first nine months of 2024, we recorded income tax items of $41 million (or $0.02 per share), primarily due to an income tax benefit from the partial release of a valuation allowance on our losses related to our former investment in JUUL Labs, Inc., partially offset by interest expense on tax reserves recorded in prior years. The valuation allowance release was due to our capital gain in connection with the sale of a portion of our investment in ABI.
SMOKEABLE PRODUCTS
Revenues and OCI
Third Quarter
First Nine Months
Table 2 - Smokeable Products: Revenues and OCI ($ in millions)
Third Quarter
Nine Months Ended September 30,
2025
2024
Change
2025
2024
Change
Net revenues
$
5,387
$
5,540
(2.8
)%
$
15,366
$
15,941
(3.6
)%
Excise taxes
(797
)
(888
)
(2,299
)
(2,630
)
Revenues net of excise taxes
$
4,590
$
4,652
(1.3
)%
$
13,067
$
13,311
(1.8
)%
Reported OCI
$
2,942
$
2,937
0.2
%
$
8,341
$
8,183
1.9
%
NPM Adjustment Items
(2
)
(23
)
(2
)
(29
)
Asset impairment, exit and implementation costs
12
—
38
—
Tobacco and health and certain other litigation items
4
21
44
59
Adjusted OCI
$
2,956
$
2,935
0.7
%
$
8,421
$
8,213
2.5
%
Reported OCI margins 1
64.1
%
63.1
%
1.0 pp
63.8
%
61.5
%
2.3 pp
Adjusted OCI margins 1
64.4
%
63.1
%
1.3 pp
64.4
%
61.7
%
2.7 pp
1 Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.
Shipment Volume
Third Quarter
First Nine Months
Table 3 - Smokeable Products: Reported Shipment Volume (sticks in millions)
Third Quarter
Nine Months Ended September 30,
2025
2024
Change
2025
2024
Change
Cigarettes:
Marlboro
14,235
16,122
(11.7
)%
41,671
47,411
(12.1
)%
Other premium
744
824
(9.7
)%
2,141
2,397
(10.7
)%
Discount
1,213
695
74.5
%
2,650
2,181
21.5
%
Total cigarettes
16,192
17,641
(8.2
)%
46,462
51,989
(10.6
)%
Cigars:
Black & Mild
452
443
2.0
%
1,335
1,320
1.1
%
Other
1
1
—
%
2
3
(33.3
)%
Total cigars
453
444
2.0
%
1,337
1,323
1.1
%
Total smokeable products
16,645
18,085
(8.0
)%
47,799
53,312
(10.3
)%
Note: Cigarettes volume includes domestic units sold as well as promotional units but excludes units not considered domestic, which are not material to our smokeable products segment.
Retail Share and Brand Activity
Third Quarter
First Nine Months
Table 4 - Smokeable Products: Cigarettes Retail Share (percent)
Third Quarter
Nine Months Ended September 30,
2025
2024
Percentage point change
2025
2024
Percentage point change
Cigarettes:
Marlboro
40.4
%
41.6
%
(1.2
)
40.8
%
41.9
%
(1.1
)
Other premium
2.2
2.2
—
2.2
2.3
(0.1
)
Discount
2.8
1.9
0.9
2.2
1.9
0.3
Total cigarettes
45.4
%
45.7
%
(0.3
)
45.2
%
46.1
%
(0.9
)
Note: Retail share results for cigarettes are based on data from Circana, LLC (Circana) as well as MSAi. Circana maintains a blended retail service that uses a sample of stores and certain wholesale shipments to project market share and depict share trends. This service tracks sales in the food, drug, mass merchandisers, convenience, military, dollar store and club trade classes. For other trade classes selling cigarettes, retail share is based on shipments from wholesalers to retailers through the Store Tracking Analytical Reporting System (STARS), as provided by MSAi. This service is not designed to capture sales through other channels, including the internet, direct mail and some tax-advantaged outlets. It is the standard practice of retail services to periodically refresh their retail scan services, which could restate retail share results that were previously released in these services.
ORAL TOBACCO PRODUCTS
Revenues and OCI
Third Quarter
First Nine Months
Table 5 - Oral Tobacco Products: Revenues and OCI ($ in millions)
Third Quarter
Nine Months Ended September 30,
2025
2024
Change
2025
2024
Change
Net revenues
$
689
$
722
(4.6
)%
$
2,096
$
2,084
0.6
%
Excise taxes
(24
)
(27
)
(74
)
(76
)
Revenues net of excise taxes
$
665
$
695
(4.3
)%
$
2,022
$
2,008
0.7
%
Reported OCI
$
459
$
464
(1.1
)%
$
1,390
$
996
39.6
%
Asset impairment, exit and implementation costs
1
—
5
354
Adjusted OCI
$
460
$
464
(0.9
)%
$
1,395
$
1,350
3.3
%
Reported OCI margins 1
69.0
%
66.8
%
2.2 pp
68.7
%
49.6
%
19.1 pp
Adjusted OCI margins 1
69.2
%
66.8
%
2.4 pp
69.0
%
67.2
%
1.8 pp
1 Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.
Shipment Volume
Beginning in the first quarter of 2025, our estimated oral tobacco industry volume has been updated for the current and comparable periods to include synthetic oral nicotine pouch products.
Third Quarter
First Nine Months
Table 6 - Oral Tobacco Products: Reported Shipment Volume (cans in millions)
Third Quarter
Nine Months Ended September 30,
2025
2024
Change
2025
2024
Change
Copenhagen
88.8
101.4
(12.4
)%
274.4
304.4
(9.9
)%
Skoal
31.0
37.4
(17.1
)%
96.6
111.6
(13.4
)%
on!
42.2
41.9
0.7
%
133.6
116.4
14.8
%
Other
16.2
16.4
(1.2
)%
47.6
50.0
(4.8
)%
Total oral tobacco products
178.2
197.1
(9.6
)%
552.2
582.4
(5.2
)%
Note: Volume includes cans sold, as well as promotional units, but excludes non-domestic volume, which is currently not material to our oral tobacco products segment. New types of oral tobacco products, as well as new packaging configurations of existing oral tobacco products, may or may not be equivalent to existing MST products on a can-for-can basis. To calculate volumes of cans shipped, one can of oral nicotine pouches, irrespective of the number of pouches in the can, is assumed to be equivalent to one can of MST.
Retail Share and Brand Activity
Beginning in the first quarter of 2025, our reported oral tobacco products segment retail share performance data has been updated for the current and comparable periods to include synthetic oral nicotine pouch products.
Third Quarter
First Nine Months
Table 7 - Oral Tobacco Products: Retail Share (percent)
Third Quarter
Nine Months Ended September 30,
2025
2024
Percentage
point
change
2025
2024
Percentage
point
change
Copenhagen
14.6
%
18.5
%
(3.9
)
15.8
%
19.3
%
(3.5
)
Skoal
5.6
7.3
(1.7
)
6.1
7.7
(1.6
)
on!
8.7
8.8
(0.1
)
8.7
7.9
0.8
Other
2.2
2.6
(0.4
)
2.3
2.6
(0.3
)
Total oral tobacco products
31.1
%
37.2
%
(6.1
)
32.9
%
37.5
%
(4.6
)
Note: Our oral tobacco products segment’s retail share results exclude non-domestic volume, which is currently not material to our oral tobacco products segment. Retail share results for oral tobacco products are based on data from Circana, a tracking service that uses a sample of stores to project market share and depict share trends. This service tracks sales in the food, drug, mass merchandisers, convenience, military, dollar store and club trade classes on the number of cans sold. Oral tobacco products are defined by Circana as domestic oral products, in the form of MST and oral nicotine pouch products (inclusive of tobacco-derived and synthetic oral nicotine products). New types of oral tobacco products, as well as new packaging configurations of existing oral tobacco products, may or may not be equivalent to existing MST products on a can-for-can basis. For example one can of oral nicotine pouches, irrespective of the number of pouches in the can, is assumed to be equivalent to one can of MST. Because this service represents retail share performance only in key trade channels, it should not be considered a precise measurement of actual retail share. It is the standard practice of retail services to periodically refresh their retail scan services, which could restate retail share results that were previously released in these services.
Altria’s Profile
We have a leading portfolio of tobacco products for U.S. tobacco consumers age 21+. We are Moving Beyond Smoking™, by responsibly transitioning adult smokers to a smoke-free future, competing vigorously for existing smoke-free adult nicotine consumers and exploring new growth opportunities — beyond the United States and beyond nicotine (Vision). To achieve our Vision, we will pursue initiatives designed to promote the long-term welfare of our company, our stakeholders, society at large and the environment.
Our wholly owned subsidiaries include leading manufacturers of both combustible and smoke-free products. In combustibles, we own Philip Morris USA Inc. (PM USA), the most profitable U.S. cigarette manufacturer, and John Middleton Co. (Middleton), a leading U.S. cigar manufacturer. Our smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), the leading global moist smokeless tobacco (MST) manufacturer, Helix Innovations LLC (Helix), a leading manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), an e-vapor manufacturer with products covered by marketing granted orders from the U.S. Food and Drug Administration (FDA).
Additionally, we have a majority-owned joint venture, Horizon Innovations LLC (Horizon), for the U.S. marketing and commercialization of heated tobacco stick products.
Our equity investments include Anheuser-Busch InBev SA/NV (ABI), the world’s largest brewer, and Cronos Group Inc. (Cronos), a leading Canadian cannabinoid company.
The brand portfolios of our operating companies include Marlboro®, Black & Mild®, Copenhagen®, Skoal®, on!® and NJOY®. Trademarks related to Altria referenced in this release are the property of Altria or our subsidiaries or are used with permission.
Learn more about Altria at www.altria.com and follow us on X (formerly known as Twitter), Facebook and LinkedIn.
Basis of Presentation
We report our financial results in accordance with GAAP. Our management reviews OCI, which is defined as operating income before general corporate expenses and amortization of intangibles, to evaluate the performance of, and allocate resources to, our segments. Our management also reviews certain financial results, including OCI, OCI margins and diluted EPS, on an adjusted basis, which excludes certain income and expense items, including those items noted under “2025 Full-Year Guidance.” Our management does not view any of these special items to be part of our underlying results as they may be highly variable, may be unusual or infrequent, are difficult to predict and can distort underlying business trends and results. Our management believes that adjusted financial measures provide useful additional insight into underlying business trends and results, and provide a more meaningful comparison of year-over-year results. Our management uses adjusted financial measures for planning, forecasting and evaluating business and financial performance, including allocating capital and other resources and evaluating results relative to employee compensation targets. These adjusted financial measures are not required by, or calculated in accordance with, GAAP and may not be calculated the same as similarly titled measures used by other companies. These adjusted financial measures should thus be considered as supplemental in nature and not considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. We provide reconciliations of historical adjusted financial measures to corresponding GAAP measures in this release.
We use the equity method of accounting for our investments in ABI and Cronos and report our share of ABI’s and Cronos’s results using a one-quarter lag because ABI’s and Cronos’s results are not available in time for us to record them in the concurrent period. The one-quarter reporting lag for ABI and Cronos does not affect our cash flows.
Our reportable segments are (i) smokeable products, consisting of combustible cigarettes and machine-made large cigars, and (ii) oral tobacco products, consisting of MST and oral nicotine pouches. We have included results for NJOY, Horizon, Helix International and other business activities, which primarily consists of research and development expense related to certain new product platforms and technologies, in “All Other.” Comparisons are to the corresponding prior-year period unless otherwise stated.
Forward-Looking and Cautionary Statements
This release contains projections of future results and other forward-looking statements that are subject to a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Important factors that could cause actual results to differ materially from those contained in the forward-looking statements included in this release are described in our publicly filed reports, including our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. These factors and risks include the following:
You should understand that it is not possible to predict or identify all factors and risks. Consequently, you should not consider the foregoing list to be complete. We do not undertake to update any forward-looking statement that we may make from time to time except as required by applicable law. All subsequent written and oral forward-looking statements attributable to Altria or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements referenced above.
Schedule 1
ALTRIA GROUP, INC.
and Subsidiaries
Consolidated Statements of Earnings
For the Quarters Ended September 30,
(dollars in millions, except per share data)
(Unaudited)
2025
2024
% Change
Net revenues
$
6,072
$
6,259
(3.0
)%
Cost of sales 1
1,439
1,536
Excise taxes on products 1
821
915
Gross profit
3,812
3,808
0.1
%
Marketing, administration and research costs
485
526
Asset impairment and exit costs
2
—
Operating companies income
3,325
3,282
1.3
%
Amortization of intangibles
38
38
General corporate expenses
57
92
Operating income
3,230
3,152
2.5
%
Interest and other debt expense, net
278
267
Net periodic benefit income, excluding service cost
(16
)
(25
)
(Income) losses from investments in equity securities 1
(107
)
(116
)
Earnings before income taxes
3,075
3,026
1.6
%
Provision for income taxes
700
733
Net earnings
$
2,375
$
2,293
3.6
%
Per share data:
Diluted earnings per share
$
1.41
$
1.34
5.2
%
Weighted-average diluted shares outstanding
1,680
1,703
(1.4
)%
1 Cost of sales includes charges for resolution expenses related to state settlement agreements and FDA user fees. Supplemental information concerning those items, excise taxes on products sold and (income) losses from investments in equity securities is shown in Schedule 5.
Schedule 2
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data
For the Quarters Ended September 30,
(dollars in millions)
(Unaudited)
Net Revenues
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2025
$
5,387
$
689
$
(4
)
$
6,072
2024
5,540
722
(3
)
6,259
% Change
(2.8
)%
(4.6
)%
(33.3
)%
(3.0
)%
Reconciliation:
For the quarter ended September 30, 2024
$
5,540
$
722
$
(3
)
$
6,259
Operations
(153
)
(33
)
(1
)
(187
)
For the quarter ended September 30, 2025
$
5,387
$
689
$
(4
)
$
6,072
Operating Companies Income (Loss)
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2025
$
2,942
$
459
$
(76
)
$
3,325
2024
2,937
464
(119
)
3,282
% Change
0.2
%
(1.1
)%
36.1
%
1.3
%
Reconciliation:
For the quarter ended September 30, 2024
$
2,937
$
464
$
(119
)
$
3,282
NPM Adjustment Items - 2024
(23
)
—
—
(23
)
Tobacco and health and certain other litigation items - 2024
21
—
—
21
(2
)
—
—
(2
)
NPM Adjustment Items - 2025
2
—
—
2
Asset impairment, exit and implementation costs - 2025
(12
)
(1
)
—
(13
)
Tobacco and health and certain other litigation items - 2025
(4
)
—
—
(4
)
(14
)
(1
)
—
(15
)
Operations
21
(4
)
43
60
For the quarter ended September 30, 2025
$
2,942
$
459
$
(76
)
$
3,325
Schedule 3
ALTRIA GROUP, INC.
and Subsidiaries
Consolidated Statements of Earnings
For the Nine Months Ended September 30,
(dollars in millions, except per share data)
(Unaudited)
2025
2024
% Change
Net revenues
$
17,433
$
18,044
(3.4
)%
Cost of sales 1
4,149
4,575
Excise taxes on products 1
2,373
2,706
Gross profit
10,911
10,763
1.4
%
Marketing, administration and research costs
1,502
1,521
Asset impairment and exit costs
3
354
Impairment of goodwill
873
—
Operating companies income
8,533
8,888
(4.0
)%
Amortization of intangibles
112
102
General corporate expenses
173
427
Operating income
8,248
8,359
(1.3
)%
Interest and other debt expense, net
815
782
Net periodic benefit income, excluding service cost
(45
)
(74
)
(Income) losses from investments in equity securities 1
(398
)
(530
)
Gain on the sale of IQOS System commercialization rights
—
(2,700
)
Earnings before income taxes
7,876
10,881
(27.6
)%
Provision for income taxes
2,046
2,656
Net earnings
$
5,830
$
8,225
(29.1
)%
Per share data 2:
Diluted earnings per share
$
3.45
$
4.75
(27.4
)%
Weighted-average diluted shares outstanding
1,685
1,726
(2.4
)%
1 Cost of sales includes charges for resolution expenses related to state settlement agreements and FDA user fees. Supplemental information concerning those items, excise taxes on products sold and (income) losses from investments in equity securities is shown in Schedule 5.
2 Diluted earnings per share are computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.
Schedule 4
ALTRIA GROUP, INC.
and Subsidiaries
Selected Financial Data
For the Nine Months Ended September 30,
(dollars in millions)
(Unaudited)
Net Revenues
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2025
$
15,366
$
2,096
$
(29
)
$
17,433
2024
15,941
2,084
19
18,044
% Change
(3.6
)%
0.6
%
(100%+)
(3.4
)%
Reconciliation:
For the nine months ended September 30, 2024
$
15,941
$
2,084
$
19
$
18,044
Acquisition and disposition-related items - 2025
—
—
(42
)
(42
)
Operations
(575
)
12
(6
)
(569
)
For the nine months ended September 30, 2025
$
15,366
$
2,096
$
(29
)
$
17,433
Operating Companies Income (Loss)
Smokeable
Products
Oral
Tobacco
Products
All Other
Total
2025
$
8,341
$
1,390
$
(1,198
)
$
8,533
2024
8,183
996
(291
)
8,888
% Change
1.9
%
39.6
%
(100%+)
(4.0
)%
Reconciliation:
For the nine months ended September 30, 2024
$
8,183
$
996
$
(291
)
$
8,888
NPM Adjustment Items - 2024
(29
)
—
—
(29
)
Asset impairment, exit and implementation costs - 2024
—
354
—
354
Tobacco and health and certain other litigation items - 2024
59
—
—
59
30
354
—
384
NPM Adjustment Items - 2025
2
—
—
2
Acquisition and disposition-related items - 2025
—
—
(86
)
(86
)
Asset impairment, exit and implementation costs - 2025
(38
)
(5
)
(873
)
(916
)
Tobacco and health and certain other litigation items - 2025
(44
)
—
—
(44
)
(80
)
(5
)
(959
)
(1,044
)
Operations
208
45
52
305
For the nine months ended September 30, 2025
$
8,341
$
1,390
$
(1,198
)
$
8,533
Schedule 5
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data
(dollars in millions)
(Unaudited)
For the Quarters
Ended September 30,
For the Nine Months Ended
September 30,
2025
2024
2025
2024
The segment detail of excise taxes on products sold is as follows:
Smokeable products
$
797
$
888
$
2,299
$
2,630
Oral tobacco products
24
27
74
76
$
821
$
915
$
2,373
$
2,706
The segment detail of charges for resolution expenses related to state settlement agreements included in cost of sales is as follows:
Smokeable products
$
792
$
875
$
2,278
$
2,654
Oral tobacco products
—
3
—
8
$
792
$
878
$
2,278
$
2,662
The segment detail of FDA user fees included in cost of sales is as follows:
Smokeable products
$
64
$
66
$
184
$
190
Oral tobacco products
2
2
4
4
$
66
$
68
$
188
$
194
The detail of (income) losses from investments in equity securities is as follows:
ABI
$
(123
)
$
(121
)
$
(396
)
$
(555
)
Cronos
16
5
(2
)
25
$
(107
)
$
(116
)
$
(398
)
$
(530
)
Schedule 6
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings Per Share
For the Quarters Ended September 30,
(dollars in millions, except per share data)
(Unaudited)
Net Earnings
Diluted EPS
2025 Net Earnings
$
2,375
$
1.41
2024 Net Earnings
$
2,293
$
1.34
% Change
3.6
%
5.2
%
Reconciliation:
2024 Net Earnings
$
2,293
$
1.34
2024 NPM Adjustment Items
(15
)
(0.01
)
2024 Acquisition and disposition-related items
33
0.02
2024 Tobacco and health and certain other litigation items
16
0.01
2024 Amortization of intangibles
31
0.02
2024 ABI-related special items
18
0.01
2024 Cronos-related special items
1
—
2024 Income tax items
11
0.01
Subtotal 2024 special items 1
95
0.06
2025 NPM Adjustment Items
2
—
2025 Acquisition and disposition-related items
(3
)
—
2025 Asset impairment, exit and implementation costs
(10
)
—
2025 Tobacco and health and certain other litigation items
(3
)
—
2025 Amortization of intangibles
(30
)
(0.02
)
2025 ABI-related special items
(27
)
(0.02
)
2025 Cronos-related special items
(18
)
(0.01
)
2025 Income tax items
20
0.01
Subtotal 2025 special items
(69
)
(0.04
)
Fewer shares outstanding
—
0.02
Change in tax rate
21
0.01
Operations
35
0.02
2025 Net Earnings
$
2,375
$
1.41
1 Prior period amounts have been recast to conform with current period presentation for amortization expense associated with definite-lived intangible assets that were not previously identified as special items and that are now excluded from Altria’s adjusted financial measures.
Schedule 7
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and non-GAAP Measures
For the Quarters Ended September 30,
(dollars in millions, except per share data)
(Unaudited)
Earnings
before Income
Taxes
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS
2025 Reported
$
3,075
$
700
$
2,375
$
1.41
NPM Adjustment Items
(2
)
—
(2
)
—
Acquisition and disposition-related items
1
(2
)
3
—
Asset impairment, exit and implementation costs
13
3
10
—
Tobacco and health and certain other litigation items
3
—
3
—
Amortization of intangibles
38
8
30
0.02
ABI-related special items
34
7
27
0.02
Cronos-related special items
18
—
18
0.01
Income tax items
—
20
(20
)
(0.01
)
2025 Adjusted for Special Items
$
3,180
$
736
$
2,444
$
1.45
2024 Reported
$
3,026
$
733
$
2,293
$
1.34
NPM Adjustment Items
(21
)
(6
)
(15
)
(0.01
)
Acquisition and disposition-related items
44
11
33
0.02
Tobacco and health and certain other litigation items
22
6
16
0.01
Amortization of intangibles
38
7
31
0.02
ABI-related special items
23
5
18
0.01
Cronos-related special items
2
1
1
—
Income tax items
—
(11
)
11
0.01
2024 Adjusted for Special Items 1
$
3,134
$
746
$
2,388
$
1.40
2025 Reported Net Earnings and Reported Diluted EPS
$
2,375
$
1.41
2024 Reported Net Earnings and Reported Diluted EPS
$
2,293
$
1.34
% Change
3.6
%
5.2
%
2025 Adjusted Net Earnings and Adjusted Diluted EPS
$
2,444
$
1.45
2024 Adjusted Net Earnings and Adjusted Diluted EPS
$
2,388
$
1.40
% Change
2.3
%
3.6
%
1 Prior period amounts have been recast to conform with current period presentation for amortization expense associated with definite-lived intangible assets that were not previously identified as special items and that are now excluded from Altria’s adjusted financial measures.
Schedule 8
ALTRIA GROUP, INC.
and Subsidiaries
Net Earnings and Diluted Earnings Per Share
For the Nine Months Ended September 30,
(dollars in millions, except per share data)
(Unaudited)
Net Earnings
Diluted EPS 1
2025 Net Earnings
$
5,830
$
3.45
2024 Net Earnings
8,225
$
4.75
% Change
(29.1
)%
(27.4
)%
Reconciliation:
2024 Net Earnings
$
8,225
$
4.75
2024 NPM Adjustment Items
(20
)
(0.01
)
2024 Acquisition and disposition-related items
(1,849
)
(1.07
)
2024 Asset impairment, exit and implementation costs
264
0.15
2024 Tobacco and health and certain other litigation items
68
0.04
2024 Amortization of intangibles
85
0.05
2024 ABI-related special items
(30
)
(0.01
)
2024 Cronos-related special items
20
0.01
2024 Income tax items
(41
)
(0.02
)
Subtotal 2024 special items 2
(1,503
)
(0.86
)
2025 NPM Adjustment Items
2
—
2025 Acquisition and disposition-related items
(80
)
(0.05
)
2025 Asset impairment, exit and implementation costs
(906
)
(0.53
)
2025 Tobacco and health and certain other litigation items
(37
)
(0.02
)
2025 Amortization of intangibles
(92
)
(0.05
)
2025 ABI-related special items
(28
)
(0.02
)
2025 Cronos-related special items
(2
)
—
2025 Income tax items
7
—
Subtotal 2025 special items
(1,136
)
(0.67
)
Fewer shares outstanding
—
0.10
Change in tax rate
81
0.04
Operations
163
0.09
2025 Net Earnings
$
5,830
$
3.45
1 Diluted earnings per share are computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.
2 Prior period amounts have been recast to conform with current period presentation for amortization expense associated with definite-lived intangible assets that were not previously identified as special items and that are now excluded from Altria’s adjusted financial measures.
Schedule 9
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and non-GAAP Measures
For the Nine Months Ended September 30,
(dollars in millions, except per share data)
(Unaudited)
Earnings
before
Income Taxes
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS 1
2025 Reported
$
7,876
$
2,046
$
5,830
$
3.45
NPM Adjustment Items
(2
)
—
(2
)
—
Acquisition and disposition-related items
96
16
80
0.05
Asset impairment, exit and implementation costs
916
10
906
0.53
Tobacco and health and certain other litigation items
48
11
37
0.02
Amortization of intangibles
112
20
92
0.05
ABI-related special items
36
8
28
0.02
Cronos-related special items
2
—
2
—
Income tax items
—
7
(7
)
—
2025 Adjusted for Special Items
$
9,084
$
2,118
$
6,966
$
4.12
2024 Reported
10,881
2,656
8,225
4.75
NPM Adjustment Items
(27
)
(7
)
(20
)
(0.01
)
Acquisition and disposition-related items
(2,513
)
(664
)
(1,849
)
(1.07
)
Asset impairment, exit and implementation costs
354
90
264
0.15
Tobacco and health and certain other litigation items
90
22
68
0.04
Amortization of intangibles
102
17
85
0.05
ABI-related special items
(39
)
(9
)
(30
)
(0.01
)
Cronos-related special items
22
2
20
0.01
Income tax items
—
41
(41
)
(0.02
)
2024 Adjusted for Special Items 2
$
8,870
$
2,148
$
6,722
$
3.89
2025 Reported Net Earnings and Reported Diluted EPS
$
5,830
$
3.45
2024 Reported Net Earnings and Reported Diluted EPS
$
8,225
$
4.75
% Change
(29.1
)%
(27.4
)%
2025 Adjusted Net Earnings and Adjusted Diluted EPS
$
6,966
$
4.12
2024 Adjusted Net Earnings and Adjusted Diluted EPS
$
6,722
$
3.89
% Change
3.6
%
5.9
%
1 Diluted earnings per share are computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts.
2 Prior period amounts have been recast to conform with current period presentation for amortization expense associated with definite-lived intangible assets that were not previously identified as special items and that are now excluded from Altria’s adjusted financial measures.
Schedule 10
ALTRIA GROUP, INC.
and Subsidiaries
Reconciliation of GAAP and non-GAAP Measures
For the Year Ended December 31, 2024
(dollars in millions, except per share data)
(Unaudited)
Earnings
before Income
Taxes
Provision
for Income
Taxes
Net
Earnings
Diluted
EPS
2024 Reported
$
13,658
$
2,394
$
11,264
$
6.54
NPM Adjustment Items
(27
)
(7
)
(20
)
(0.01
)
Acquisition, disposition and integration-related items
(2,527
)
(665
)
(1,862
)
(1.08
)
Asset impairment, exit and implementation costs
422
107
315
0.18
Tobacco and health and certain other litigation items
101
25
76
0.04
Amortization of intangibles
139
24
115
0.07
ABI-related special items
2
—
2
—
Cronos-related special items
18
3
15
0.01
Income tax items
—
969
(969
)
(0.56
)
2024 Adjusted for Special Items 1
$
11,786
$
2,850
$
8,936
$
5.19
1 Prior period amounts have been recast to conform with current period presentation for amortization expense associated with definite-lived intangible assets that were not previously identified as special items and that are now excluded from Altria’s adjusted financial measures.
Schedule 11
ALTRIA GROUP, INC.
and Subsidiaries
Condensed Consolidated Balance Sheets
(dollars in millions)
(Unaudited)
September 30, 2025
December 31, 2024
Assets
Cash and cash equivalents
$
3,472
$
3,127
Inventories
1,065
1,080
Other current assets
582
306
Property, plant and equipment, net
1,617
1,617
Goodwill and other intangible assets, net
18,938
19,918
Investments in equity securities
8,385
8,195
Other long-term assets
949
934
Total assets
$
35,008
$
35,177
Liabilities and Stockholders’ Equity (Deficit)
Current portion of long-term debt
$
1,569
$
1,527
Accrued settlement charges
1,887
2,354
Other current liabilities
4,830
4,900
Long-term debt
24,132
23,399
Deferred income taxes
3,462
3,749
Accrued pension costs
133
136
Accrued postretirement health care costs
931
935
Other long-term liabilities
660
365
Total liabilities
37,604
37,365
Total stockholders’ equity (deficit) attributable to Altria
(2,646
)
(2,238
)
Noncontrolling interest
50
50
Total liabilities and stockholders’ equity (deficit)
$
35,008
$
35,177
Total debt
$
25,701
$
24,926
Schedule 12
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data for Special Items
For the Quarters Ended September 30,
(dollars in millions)
(Unaudited)
Cost of
Sales
Marketing,
administration
and research costs
Amortization of intangibles
Asset impairment and exit costs
General
corporate
expenses
Interest and other debt (income) expense, net
(Income) losses from
investments in equity securities
2025 Special Items - (Income) Expense
NPM Adjustment Items
$
(2
)
$
—
$
—
$
—
$
—
$
—
$
—
Acquisition and disposition-related items
—
—
—
—
1
—
—
Asset impairment, exit and implementation costs
—
11
—
2
—
—
—
Tobacco and health and certain other litigation items
—
4
—
—
(1
)
—
—
Amortization of intangibles
—
—
38
—
—
—
—
ABI-related special items
—
—
—
—
—
—
34
Cronos-related special items
—
—
—
—
—
—
18
2024 Special Items - (Income) Expense 1
NPM Adjustment Items
$
(23
)
$
—
$
—
$
—
$
—
$
2
$
—
Acquisition and disposition-related items
—
—
—
—
44
—
—
Tobacco and health and certain other litigation items
—
21
—
—
—
1
—
Amortization of intangibles
—
—
38
—
—
—
—
ABI-related special items
—
—
—
—
—
—
23
Cronos-related special items
—
—
—
—
—
—
2
Note: This schedule is intended to provide supplemental financial data for certain income and expense items that management believes are not part of underlying operations and their presentation in Altria’s consolidated statements of earnings. This schedule is not intended to provide, or reconcile, non-GAAP financial measures.
Schedule 13
ALTRIA GROUP, INC.
and Subsidiaries
Supplemental Financial Data for Special Items
For the Nine Months Ended September 30,
(dollars in millions)
(Unaudited)
Net Revenues
Cost of
Sales
Marketing, administration and research costs
Amortization of intangibles
Asset impairment and exit costs
Impairment of goodwill
General corporate expenses
Interest and other debt (income) expense, net
(Income) losses from
investments in equity securities
Gain on the sale of IQOS System commercialization rights
2025 Special Items - (Income) Expense
NPM Adjustment Items
$
—
$
(2
)
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Acquisition and disposition-related items
42
44
—
—
—
—
10
—
—
—
Asset impairment, exit and implementation costs
—
—
40
—
3
873
—
—
—
—
Tobacco and health and certain other litigation items
—
—
44
—
—
—
—
4
—
—
Amortization of intangibles
—
—
—
112
—
—
—
—
—
—
ABI-related special items
—
—
—
—
—
—
(1
)
—
37
—
Cronos-related special items
—
—
—
—
—
—
—
—
2
—
2024 Special Items - (Income) Expense 1
NPM Adjustment Items
$
—
$
(29
)
$
—
$
—
$
—
$
—
$
—
$
2
$
—
$
—
Acquisition and disposition-related items
—
—
—
—
—
—
187
—
—
(2,700
)
Asset impairment, exit and implementation costs
—
—
—
—
354
—
—
—
—
—
Tobacco and health and certain other litigation items
—
—
59
—
—
—
30
1
—
—
Amortization of intangibles
—
—
—
102
—
—
—
—
—
—
ABI-related special items
—
—
—
—
—
—
59
3
(101
)
—
Cronos-related special items
—
—
—
—
—
—
—
—
22
—
Note: This schedule is intended to provide supplemental financial data for certain income and expense items that management believes are not part of underlying operations and their presentation in our consolidated statements of earnings. This schedule is not intended to provide, or reconcile, non-GAAP financial measures.
1 Prior period amounts have been recast to conform with current period presentation for amortization expense associated with definite-lived intangible assets that were not previously identified as special items and that are now excluded from Altria’s adjusted financial measures.