Altria Group 2025 Q2 Earnings Misses Targets with Net Income Decline of 37.5%

Altria Group (MO), ranking 139th by market capitalization, reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. Altria's results fell short of expectations, with net earnings declining significantly compared to the previous year. The company raised its 2025 guidance, forecasting adjusted diluted EPS between $5.35 and $5.45, reflecting a growth rate of 3% to 5% from a base of $5.19 in 2024.

Revenue
Altria Group's total revenue for Q2 2025 saw a decline of 1.7% compared to Q2 2024, totaling $6.10 billion. In the smokeable products category, revenue decreased to $9.98 billion, while oral tobacco products brought in $1.41 billion. The 'All Other' segment showed a revenue of negative $25 million. Net revenues reached $11.36 billion, reflecting the company's varied performance across its different product lines.

Earnings/Net Income
Altria Group experienced a 36.2% drop in EPS, falling to $1.41 in 2025 Q2 compared to $2.21 in 2024 Q2. Net income also fell sharply to $2.38 billion, marking a 37.5% decrease from $3.80 billion in 2024 Q2. Despite long-term profitability, the current EPS figures indicate challenging conditions.

Post-Earnings Price Action Review
The strategy of investing in Altria Group shares following a quarter-on-quarter revenue increase has historically yielded moderate returns, underperforming the market. With a compound annual growth rate of 8.48% and a maximum drawdown of 0.00%, the strategy maintains a low-risk profile but offers modest returns. The Sharpe ratio stands at 0.39, further highlighting the strategy's stability. Investors seeking steady performance may find this approach suitable, although it generally trails broader market benchmarks by 37.75%.

CEO Commentary
William F. Gifford, CEO & Director, emphasized that Altria continued to pursue its vision while maintaining strong performance in its core businesses. He highlighted that on! nicotine pouches were pivotal in driving growth, contributing to an 11% increase in oral tobacco volume over six months. Gifford expressed optimism about the operating companies' financial results despite a dynamic marketplace and reiterated the commitment to shape a fully regulated industry. He noted the importance of returning value to shareholders and mentioned the company's efforts in product innovation and regulatory advocacy to create a responsible marketplace for adult consumers.

Guidance
Altria raised the lower end of its 2025 guidance range, now expecting adjusted diluted EPS between $5.35 and $5.45, reflecting a 3% to 5% growth from a base of $5.19 in 2024. The company anticipates a moderate EPS growth rate as it lags behind the previous year’s accelerated share repurchase program and the expiration of the MSA legal fund. Additionally, Altria will continue to monitor the purchasing behaviors of adult tobacco consumers amid a challenging economic environment.

Additional News
In recent weeks, Altria Group has been active in strategic financial maneuvers. The company repurchased 4.7 million shares at an average price of $58.63 in the second quarter, totaling $274 million. For the first half of the year, share repurchases reached 10.4 million shares at an average price of $57.71, amounting to $600 million. Additionally, Altria distributed $1.7 billion in dividends during Q2 and $3.5 billion for the first half of 2025. The company aims to complete its authorized $1 billion share repurchase program by December 31, 2025, contingent on market conditions. These actions underscore Altria's commitment to delivering value to shareholders amidst a dynamic market environment.

Article Polishing
Altria Group (MO), ranking 139th by market capitalization, reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. Altria's results fell short of expectations, with net earnings declining significantly compared to the previous year. The company raised its 2025 guidance, forecasting adjusted diluted EPS between $5.35 and $5.45, reflecting a growth rate of 3% to 5% from a base of $5.19 in 2024.

Revenue
Altria Group's total revenue for Q2 2025 saw a decline of 1.7% compared to Q2 2024, totaling $6.10 billion. In the smokeable products category, revenue decreased to $9.98 billion, while oral tobacco products brought in $1.41 billion. The 'All Other' segment showed a revenue of negative $25 million. Net revenues reached $11.36 billion, reflecting the