Summary
Altria Group, Inc. (MO) reported a decrease in net earnings for the six months ended June 30, 2025, to $3.46 billion from $5.93 billion in the prior year, primarily impacted by a significant gain in the prior year from the sale of IQOS System commercialization rights. Reported diluted EPS also decreased to $2.04 from $3.41. Despite the decline in reported net earnings, adjusted net earnings saw an increase of 4.3% to $4.52 billion, with adjusted diluted EPS rising 7.2% to $2.67. This highlights the company's focus on operational performance and managing its core business segments. The company continued its share repurchase program and maintained its progressive dividend goal, signaling a commitment to returning capital to shareholders. The results reflect ongoing industry challenges, including declining cigarette volumes and evolving consumer preferences towards smoke-free alternatives, alongside significant goodwill impairment related to the e-vapor segment.
Financial Highlights
48 data points| Revenue | $6.10B |
| Cost of Revenue | $1.44B |
| Gross Profit | $3.85B |
| Operating Income | $3.23B |
| Net Income | $2.38B |
| EPS (Basic) | $1.41 |
| EPS (Diluted) | $1.41 |
| Shares Outstanding (Basic) | 1.68B |
| Shares Outstanding (Diluted) | 1.68B |
Key Highlights
- 1Reported net earnings for the six months ended June 30, 2025, decreased to $3.46 billion from $5.93 billion in the prior year, largely due to a significant gain from the sale of IQOS System commercialization rights in the prior year.
- 2Adjusted net earnings increased by 4.3% to $4.52 billion for the first six months of 2025, while adjusted diluted EPS grew by 7.2% to $2.67, indicating operational strength.
- 3The company recorded an $873 million non-cash goodwill impairment charge in the first quarter of 2025 related to its e-vapor reporting unit, driven by U.S. International Trade Commission orders affecting NJOY ACE sales and other market factors.
- 4Net revenues for the six months ended June 30, 2025, decreased by 3.6% to $11.36 billion, with the smokeable products segment experiencing a 4.1% decline in net revenues.
- 5The oral tobacco products segment saw a 3.3% increase in net revenues to $1.41 billion for the six months ended June 30, 2025, driven by higher pricing, though shipment volumes declined.
- 6Altria continued its share repurchase program, repurchasing $600 million worth of shares in the first six months of 2025, and maintained its progressive dividend goal, signaling a commitment to shareholder returns.
- 7The company's investment in Anheuser-Busch InBev (ABI) remains a significant asset, with its fair value at $10.9 billion at June 30, 2025, though income from the investment declined due to a prior year gain and reduced ownership.