What factors drove the changes in Altria Group's revenue and profit?

What were the key takeaways from Altria Group's earnings call?

What guidance did Altria Group's management provide for the next earnings period?

What does Altria Group do and what are its main business segments?

What is the revenue and EPS growth rate for Altria Group year over year?

What is the market's earnings forecast for Altria Group next quarter?

What is Altria Group's latest dividend and current dividend yield?

Did Altria Group beat or miss consensus estimates last quarter?

- **EPS Growth Acceleration**: 2025 adjusted EPS guidance of $5.37-$5.45 (3.5%-5% growth) reflects strong cash returns and margin expansion, targeting mid-single-digit CAGR through 2028.
- **Smoke-Free Innovation**: on! PLUS launch in 3 states with premium pricing; oral tobacco category volume up 14.5% YTD, on! retail share +0.8 share points to 8.7%.
- **Strategic Partnerships**: KT&G collaboration to expand on! internationally and explore U.S. non-nicotine products, with potential operational synergies and duty drawback benefits.
- **Regulatory Progress**: FDA pilot program for oral nicotine pouches signals faster approvals; federal enforcement actions against illicit e-vapors support regulated product access.

**【CEO Summary Section】**
- **Revenue Growth and Smoke-Free Momentum**: Adjusted diluted EPS grew 3.6% YoY, driven by strong performance in the smoke-free portfolio. Oral tobacco industry volume increased 14.5% over 6 months, with on! PLUS launching in 3 U.S. states. On! retail share of the oral tobacco category rose 0.8 share points YTD to 8.7%.
- **Collaboration with KT&G**: Announced partnership to explore international modern oral and U.S. non-nicotine opportunities, including potential expansion of on! into international markets and collaboration on energy/wellness products.
- **Regulatory Progress**: FDA pilot program for oral nicotine pouches includes on! PLUS applications, signaling faster regulatory approvals. Federal enforcement actions against illicit e-vapors seized over 4 million units, supporting regulated product access.

**【CFO Financial Commentary】**
- **Financial Performance**: Adjusted diluted EPS of $5.37-$5.45 for 2025 (3.5%-5% growth vs. 2024), driven by smokeable products segment OCI margin expansion to 64.4% and oral tobacco segment margin growth to 69.2%.
- **Shareholder Returns**: Expanded share repurchase program to $2 billion and increased quarterly dividend by 3.9% to $1.06/share, marking 60th dividend increase in 56 years.
- **Volume Trends**: Domestic cigarette volumes declined 8.2% Q3/2025, but Marlboro maintained 59.6% share of premium segment, while Basic brand captured 1.4 share points YTD in discount segment.

**【Q&A Highlights】**
- **on! PLUS Rollout**: Early feedback positive; national launch contingent on consumer demand and regulatory approvals. On! PLUS priced premium to on! due to differentiated comfort, nicotine delivery, and flavor satisfaction.
- **KT&G Partnership**: Aims to leverage KT&G's expertise in non-nicotine products (e.g., Korean red ginseng) and optimize cigarette manufacturing for international markets, potentially benefiting from duty drawback programs.
- **Cost Management**: Focus on long-term margin expansion through Optimize & Accelerate program, with RGM tools driving price realization and promotional efficiency. Controllable costs managed to support mid-single-digit EPS CAGR through 2028.


Altria Group, Inc. (MO) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MO

MO fundamentals

You can ask Aime