Altria Q2 Earnings Top Estimates, Narrows Full-Year Outlook

Altria Group reported Q2 adjusted diluted EPS of $1.44, up 8.3% YoY, beating estimates. Revenue was $2.29 bln, slightly ahead of consensus. The company narrowed its full-year adjusted EPS guidance to a range of $5.35 to $5.45. Smokeable products segment outperformed expectations, while oral tobacco volumes declined. The results offered some support to industry peers but Jefferies sees limited upside for Altria shares near term.

Altria Group, Inc. (NYSE: MO) reported its second-quarter (Q2) and first-half results for 2025, with adjusted diluted earnings per share (EPS) of $1.44, representing an 8.3% year-over-year (YoY) increase. The company's revenue for the quarter stood at $6.1 billion, a slight increase of 1.7% compared to Q2 2024 [1].

The company's adjusted diluted EPS of $1.44 exceeded analysts' estimates, driven by higher adjusted operating companies income (OCI) and fewer shares outstanding. Altria's net revenues for Q2 2025 were $6.1 billion, a 1.7% decrease from the same period last year, primarily due to lower net revenues in the smokeable products segment. However, this was partially offset by higher net revenues in the oral tobacco products segment, which contributed to the overall increase in adjusted EPS [1].

Altria narrowed its full-year adjusted EPS guidance to a range of $5.35 to $5.45, representing a growth rate of 3.0% to 5.0% from a base of $5.19 in 2024. The company expects EPS growth to moderate as it laps the lower share count associated with the 2024 accelerated share repurchase program completion and the Master Settlement Agreement legal fund expiration benefit in the fourth quarter. The guidance range also accounts for the impact of increased tariffs on costs and limited impact on combustible and e-vapor product volumes from enforcement efforts against illicit products [1].

The smokeable products segment outperformed expectations, while oral tobacco volumes declined. Altria's share repurchase program continued, with 4.7 million shares repurchased in the second quarter and 10.4 million shares repurchased through the first half of the year. As of June 30, 2025, the company had $400 million remaining under its currently authorized $1 billion share repurchase program, which is expected to be completed by December 31, 2025 [1].

The results offered some support to industry peers, but Jefferies sees limited upside for Altria shares in the near term. The company continues to monitor conditions related to the economy, adult tobacco consumer dynamics, illicit product enforcement, and regulatory developments. Altria's full-year adjusted diluted EPS guidance range and forecast for its adjusted effective tax rate exclude the impact of certain income and expense items that are not part of underlying operations [1].

References:
[1] Altria Group, Inc. Press Release. (2025, July 30). Altria Reports 2025 Second-Quarter and First-Half Results; Narrows 2025 Full-Year Earnings Guidance. Retrieved from https://investor.altria.com/press-releases/news-details/2025/Altria-Reports-2025-Second-Quarter-and-First-Half-Results-Narrows-2025-Full-Year-Earnings-Guidance/default.aspx