01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Altria Group, Inc. reported net earnings of $5.83 billiona 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 billionb 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 $1.06c 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.
02—Key points
Key Highlights
- Reported 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.
- Adjusted net earnings increased by 3.6% to $6.97 billion for the nine months ended September 30, 2025, indicating underlying operational strength.
- The 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.
- Net 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.
- Shipment 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.
- The 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.
- The company recognized an $873 million non-cash goodwill impairment charge related to its e-vapor reporting unit due to regulatory challenges and market performance.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Altria Group, Inc. kept $0.39.
- Revenue$6.07B100.0%
- Cost of revenue−$2.26B37.2%
- Gross profit$3.81B62.8%
- Operating costs−$582.0M9.6%
- Operating income$3.23B53.2%
- Interest, other & tax−$855.0M14.1%
- Net income$2.38B39.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $6.07B$6.26B | −3.0% |
| Cost of Revenue | $1.44B$1.54B | −6.3% |
| Gross Profit | $3.81B$3.81B | +0.1% |
| Operating Income | $3.23B$3.15B | +2.5% |
| Net Income | $2.38B$2.29B | +3.6% |
| EPS (Basic) | $1.41$1.34 | +5.2% |
| EPS (Diluted) | $1.41$1.34 | +5.2% |
| Shares Outstanding (Basic) | 1.68B1.70B | −1.4% |
| Shares Outstanding (Diluted) | 1.68B1.70B | −1.4% |
05—Questions
Frequently Asked Questions
What was the primary driver of the decrease in reported net earnings?
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.
How did the company's dividend and share repurchase programs perform during the 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.
What is the outlook for the company's core smokeable products segment?
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.
What is the significance of the goodwill impairment charge?
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.
06—Continue