10-QPeriod: Q3 FY2025

ALTRIA GROUP, INC. Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 30, 2025For Securities:MO

Summary

Altria Group, Inc. reported net earnings of $5.83 billion for the first nine months of 2025, a decrease from $8.23 billion in the same period of 2024. This decline was significantly influenced by a $2.7 billion gain from the sale of IQOS System commercialization rights in the prior year and a substantial non-cash goodwill impairment charge of $873 million related to its e-vapor reporting unit. Despite the reported net earnings decrease, the company's adjusted net earnings saw an increase of 3.6% to $6.97 billion for the nine-month period, driven by higher operating companies income (OCI) and a lower adjusted tax rate. The company also announced a 3.9% increase in its quarterly dividend to $1.06 per share and a $1 billion expansion of its share repurchase program. However, shipment volumes for its core smokeable products segment declined, reflecting ongoing industry-wide pressures and evolving consumer preferences.

Financial Highlights

48 data points
Beta

Revenue

$6.07B

62.8% Gross Margin

Net Income

$2.38B

39.1% Net Margin

EPS (Diluted)

$1.41

Total Assets

$35.01B

Cash & Equivalents

$3.50B

Free Cash Flow

$3.04B

Financial Statements
Beta
Revenue$6.07B
Cost of Revenue$1.44B
Gross Profit$3.81B
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 decreased by 29.1% to $5.83 billion for the nine months ended September 30, 2025, primarily due to a large gain in the prior year from the IQOS System commercialization rights sale and an $873 million goodwill impairment charge for the e-vapor reporting unit.
  • 2Adjusted net earnings increased by 3.6% to $6.97 billion for the nine months ended September 30, 2025, indicating underlying operational strength.
  • 3The company announced a 3.9% increase in its quarterly dividend to $1.06 per share, with an annualized rate of $4.24 per share, and expanded its share repurchase program by $1 billion to $2 billion.
  • 4Net revenues for the nine months ended September 30, 2025, decreased by 3.4% to $17.43 billion, primarily driven by lower net revenues in the smokeable products segment.
  • 5Shipment volume for the smokeable products segment declined by 10.3% for the nine months ended September 30, 2025, impacted by industry volume declines and retail share losses.
  • 6The oral tobacco products segment experienced a 0.6% increase in net revenues to $2.10 billion for the nine months ended September 30, 2025, driven by higher pricing, despite a 5.2% decrease in shipment volume.
  • 7The company recognized an $873 million non-cash goodwill impairment charge related to its e-vapor reporting unit due to regulatory challenges and market performance.

Frequently Asked Questions

The primary driver for the decrease in reported net earnings for the nine months ended September 30, 2025, was a significant gain of $2.7 billion recognized in the prior year from the sale of IQOS System commercialization rights, coupled with an $873 million non-cash goodwill impairment charge related to the e-vapor reporting unit in the current period.

Altria's Board of Directors approved a 3.9% increase in the quarterly dividend rate to $1.06 per share, bringing the annualized rate to $4.24. Additionally, the company expanded its share repurchase program by $1 billion, bringing the total authorized amount to $2 billion, with an expiration date of December 31, 2026.

The smokeable products segment continues to face headwinds, with a 10.3% decrease in shipment volume for the nine months ended September 30, 2025. This is attributed to broader industry declines, evolving consumer preferences, and discretionary income pressures, although pricing actions helped offset some of the volume loss.

The $873 million goodwill impairment charge is a non-cash expense related to the e-vapor reporting unit. It reflects the negative impact of regulatory challenges, specifically an ITC exclusion order prohibiting the sale of NJOY ACE in the U.S., and lower projected volumes and revenues for this business segment.