Altria Reports 2026 Second-Quarter and First-Half Results; Narrows 2026 Full-Year Earnings Guidance

RICHMOND, Va.--(BUSINESS WIRE)--$MO #Altria--Altria Group, Inc. (NYSE: MO) today reports our 2026 second-quarter and first-half business results and narrows guidance for 2026 full-year adjusted diluted earnings per share (EPS).

“In the second quarter, our operating companies continued to deliver against the priorities we outlined at the start of the year – advancing our smoke-free portfolio, strengthening our traditional tobacco businesses and delivering significant returns to shareholders,” said Sal Mancuso, Altria’s Chief Executive Officer.

“In smoke-free, Helix expanded on! PLUS to 120,000 stores nationwide, engaged in trial-generating activities and prepared for additional line extensions to come later this year. In smokeable products, PM USA advanced its data-driven, total portfolio approach to drive profitability as Marlboro Cowboy Cut generated strong interest among premium smokers and Basic continued to gain traction in discount.”

“We delivered strong first-half results, driving adjusted diluted EPS growth of 4.9%, and returned nearly $3.9 billion to shareholders through dividends and share repurchases combined. This performance reflects steady, disciplined execution and confidence in our full-year plan, which allowed us to narrow our earnings guidance for the year.”

“We are raising the lower-end of our full-year 2026 guidance. We now expect to deliver adjusted diluted EPS in a range of $5.61 to $5.72, representing a growth rate of 3.5% to 5.5% from a base of $5.42 in 2025.”

Altria Headline Financials ¹

¹ “Adjusted” financial measures presented in this release exclude the impact of special items. See “Basis of Presentation” for more information and see the schedules to this press release for reconciliations to corresponding GAAP measures.

As previously announced, a conference call with the investment community and news media will be webcast on July 30, 2026 at 9:00 a.m. Eastern Time. Access to the webcast is available at www.altria.com/webcasts.

Cash Returns to Shareholders

Share Repurchase Program

• In the second quarter, we repurchased 0.8 million shares at an average price of $65.11 per share, for a total cost of $55 million.
• Through the first half, we repurchased 5.3 million shares at an average price of $62.78 per share, for a total cost of $335 million.
• As of June 30, 2026, we had $665 million remaining under our $2 billion share repurchase program, which expires on December 31, 2026.

Dividends

• We paid dividends of $1.8 billion and $3.6 billion in the second quarter and first half, respectively.

Smoke-Free Portfolio Update

• In the second quarter, Helix resumed shipments of 12-milligram on! PLUS in Florida, North Carolina and Texas in Mint, Wintergreen and Tobacco, with a national expansion planned for the third quarter.

• Helix plans to expand its on! PLUS portfolio with additional flavors across 6-, 9- and 12-milligram nicotine strengths, beginning with Blueberry Mint and Mango Pineapple, in the fourth quarter.

2026 Full-Year Guidance

We narrow our guidance for 2026 full-year adjusted diluted EPS to be in a range of $5.61 to $5.72, representing a growth rate of 3.5% to 5.5% from a base of $5.42 in 2025.

As previously disclosed, our guidance contemplates:

(i) the impact of moderated e-vapor industry growth on combustible and e-vapor product volumes;

(ii) increased macroeconomic uncertainty facing adult nicotine consumers (ANCs);

(iii) investments in support of our contract manufacturing capabilities;

(iv) that NJOY ACE does not return to the marketplace in 2026;

(v) reinvestment of anticipated cost savings related to our Optimize & Accelerate initiative (Initiative); and

(vi) investments in support of our Vision.

Our narrowed guidance range continues to reflect our expectation for a greater benefit from cigarette import and export activity in the second half of the year than in the first half. Due to the timing of some second-quarter benefits, we expect the second-half benefit to be more balanced between the third and fourth quarters.

In addition, we expect 2026 capital expenditures to be between $375 million and $450 million, a change from our previous expectation of $300 million to $375 million. The increase primarily reflects investments to support our plan to consolidate USSTC’s manufacturing operations (USSTC Facilities Consolidation).

Our full-year adjusted diluted EPS guidance range excludes the impact of certain income and expense items that our management believes are not part of underlying operations. These items may include, for example, loss on early extinguishment of debt, charges related to restructuring and other exit activities, asset impairment charges, acquisition, disposition and integration-related items, equity investment-related special items, certain income tax items, charges associated with tobacco and health and certain other litigation items, resolutions of certain non-participating manufacturer (NPM) adjustment disputes under the Master Settlement Agreement (NPM Adjustment Items) and amortization expense associated with definite-lived intangible assets (amortization of intangibles). See Table 1 below for the income and expense items for the second quarter and first half of 2026.

Our management cannot estimate on a forward-looking basis the impact of certain income and expense items, including those items noted in the preceding paragraph, on our reported diluted EPS because these items, which could be significant, may be unusual or infrequent, are difficult to predict and may be highly variable. As a result, we do not provide a corresponding GAAP measure for, or reconciliation to, our adjusted diluted EPS guidance.

ALTRIA GROUP, INC.

See “Basis of Presentation” for an explanation of the financial measures and reportable segments discussed in this release.

Financial Performance

Second Quarter

• Net revenues were essentially unchanged at $6.1 billion as higher net revenues in the smokeable products segment and all other category, which included 2025 acquisition-related items, were offset by lower net revenues in the oral tobacco products segment. Revenues net of excise taxes increased 1.2% to $5.4 billion.

• Reported diluted EPS decreased 2.8% to $1.37, primarily driven by lower OCI (including higher tobacco and health and certain other litigation items and 2026 costs related to the USSTC Facilities Consolidation) and unfavorable ABI-related special items. These factors were partially offset by favorable income tax items, fewer shares outstanding and lower amortization of intangibles.

• Adjusted diluted EPS increased 2.8% to $1.48, primarily driven by higher adjusted OCI and fewer shares outstanding.

First Half

• Net revenues increased 1.6% to $11.5 billion, primarily driven by higher net revenues in the smokeable products segment. Revenues net of excise taxes increased 3.1% to $10.1 billion.

• Reported diluted EPS increased 30.9% to $2.67, primarily driven by higher reported OCI, which includes a 2025 non-cash impairment of the e-vapor reporting unit goodwill.

• Adjusted diluted EPS increased 4.9% to $2.80, primarily driven by higher adjusted OCI and fewer shares outstanding.

Note: For details of pre-tax, tax and after-tax amounts, see Schedule 6, 7, 8 & 9

Special Items

The EPS impact of the following special items is shown in Table 1 and Schedules 6, 7, 8 and 9.

Acquisition-Related Items

In the first half of 2025, we recorded net pre-tax expense items of $95 million (or $0.05 per share), including $70 million related to the U.S. International Trade Commission’s exclusion order and cease-and-desist orders prohibiting the importation and sale of NJOY ACE in the United States, partially offset by insurance recoveries from insurance contracts associated with the acquisition of NJOY. Also included was a $25 million non-cash, pre-tax charge related to a change in the fair value of contingent payments associated with the acquisition of NJOY.

Asset Impairment, Exit and Implementation Costs

In the second quarter and first half of 2026, we recorded pre-tax charges of $88 million (or $0.04 per share) and $94 million (or $0.04 per share), respectively, primarily due to the USSTC Facilities Consolidation.

In the first half of 2025, we recorded pre-tax charges of $903 million (or $0.53 per share), primarily due to a non-cash impairment charge of $873 million to the e-vapor reporting unit goodwill in our all other category.

Tobacco and Health and Certain Other Litigation Items

In the second quarter and first half of 2026, we recorded pre-tax charges of $95 million (or $0.05 per share) and $97 million (or $0.04 per share), respectively, for tobacco and health and certain other litigation items and related interest costs.

In the first half of 2025, we recorded pre-tax charges of $45 million (or $0.02 per share) for tobacco and health and certain other litigation items.

Amortization of Intangibles

In the first half of 2026, we recorded pre-tax amortization of intangibles of $46 million (or $0.03 per share).

In the second quarter and first half of 2025, we recorded pre-tax amortization of intangibles of $37 million (or $0.02 per share) and $74 million (or $0.04 per share), respectively.

ABI-Related Special Items

In the second quarter and first half of 2026, we recorded net pre-tax losses of $77 million (or $0.04 per share) and $78 million (or $0.04 per share), respectively, primarily due to a dilution loss resulting from ABI’s share activity that reduced our ABI ownership interest, partially offset by mark-to-market gains on certain ABI financial instruments associated with its share commitments.

The ABI-related special items include our respective share of the amounts recorded by ABI and additional adjustments related to (i) the conversion of ABI-related special items from international financial reporting standards to GAAP and (ii) adjustments to our investment required under the equity method of accounting.

Income Tax Items

In the second quarter and first half of 2026, we recorded income tax items of $42 million (or $0.03 per share) and $30 million (or $0.02 per share), respectively, primarily due to a tax benefit from the resolution of prior-year tax audits, partially offset by tax expense associated with a tax basis adjustment related to our investment in ABI.

SMOKEABLE PRODUCTS

Revenues and OCI

Second Quarter

• Net revenues increased 0.7%, primarily driven by higher pricing, partially offset by higher promotional investments, lower shipment volume and a higher percentage of discount shipment volume relative to premium versus the prior year (volume mix change). Revenues net of excise taxes increased 2.0%.

• Reported OCI increased 0.4%, primarily driven by higher pricing and higher refunds of taxes and duties paid on imported cigarettes, partially offset by higher promotional investments, lower shipment volume, volume mix change, higher tobacco and health and certain other litigation items and higher costs.

• Adjusted OCI increased 2.4%, primarily driven by higher pricing and higher refunds of taxes and duties paid on imported cigarettes, partially offset by higher promotional investments, lower shipment volume, volume mix change and higher costs. Adjusted OCI margins increased by 0.3 percentage points to 64.8%.

First Half

• Net revenues increased 1.7%, primarily driven by higher pricing, partially offset by higher promotional investments, lower shipment volume and volume mix change. Revenues net of excise taxes increased 3.5%.

• Reported and adjusted OCI increased 4.0% and 4.2%, respectively, primarily driven by higher pricing and higher refunds of taxes and duties paid on imported cigarettes, partially offset by higher promotional investments, lower shipment volume, volume mix change and higher costs. Adjusted OCI margins increased by 0.4 percentage points to 64.9%.

¹ Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.

Shipment Volume

Second Quarter

• Smokeable products segment reported domestic cigarette shipment volume decreased 3.2%, primarily driven by the industry’s decline rate (impacted by continued discretionary income pressures on ANCs), partially offset by trade inventory movements and retail share gains.

• When adjusted for trade inventory movements, smokeable products segment domestic cigarette shipment volume decreased by an estimated 4.5%.

• When adjusted for trade inventory movements, total domestic cigarette industry volume decreased by an estimated 5%.

• Reported cigar shipment volume increased 5.0%.

First Half

• Smokeable products segment reported domestic cigarette shipment volume decreased 2.8%, primarily driven by the industry’s decline rate (impacted by continued discretionary income pressures on ANCs), partially offset by trade inventory movements and retail share gains.

• When adjusted for trade inventory movements, smokeable products segment domestic cigarette shipment volume decreased by an estimated 4%.

• When adjusted for trade inventory movements, total domestic cigarette industry volume decreased by an estimated 5%.

• Reported cigar shipment volume increased 2.6%.

¹ Domestic cigarettes shipment volume includes Marlboro; Other premium brands, such as Virginia Slims and Parliament; and Discount brands, which include L&M and Basic. Domestic cigarettes volume includes units sold as well as promotional units sold for distribution in the U.S. and excludes units sold for distribution to Puerto Rico, U.S. Territories to overseas military and by Philip Morris Duty Free Inc., none of which, individually or in the aggregate, is material to our smokeable products segment.

² Contract manufactured export cigarettes shipment volume represents contract manufactured cigarettes for third parties that market and sell tobacco products outside the U.S.

Retail Share and Brand Activity

Second Quarter

• Marlboro retail share of the total cigarette category was 39.5%, a decrease of 1.5 share points versus the prior year and 0.2 share points sequentially. Marlboro share of the premium segment was 59.6%, unchanged versus the prior year and an increase of 0.1 share point sequentially.

• The cigarette industry discount retail share was 33.8%, an increase of 2.6 share points versus the prior year and 0.5 share points sequentially, primarily due to continued discretionary income pressures on ANCs.

First Half

• Marlboro retail share of the total cigarette category was 39.6%, a decrease of 1.4 share points. Marlboro share of the premium segment was 59.6%, an increase of 0.1 share point.

• The cigarette industry discount retail share was 33.6%, an increase of 2.6 share points, primarily due to continued discretionary income pressures on ANCs.

Note: Retail share results for cigarettes are based on data from Circana, LLC (Circana) as well as MSAi. Circana maintains a blended retail service that uses a sample of stores and certain wholesale shipments to project market share and depict share trends. This service tracks sales in the food, drug, mass merchandisers, convenience, military, dollar store and club trade classes. For other trade classes selling cigarettes, retail share is based on shipments from wholesalers to retailers through the Store Tracking Analytical Reporting System (STARS), as provided by MSAi. This service is not designed to capture sales through other channels, including the internet, direct mail and some tax-advantaged outlets. It is the standard practice of retail services to periodically refresh their retail scan services, which could restate retail share results that were previously released in these services.

ORAL TOBACCO PRODUCTS

Revenues and OCI

Second Quarter

• Net revenues decreased 5.3%, primarily driven by lower shipment volume and higher promotional investments, partially offset by higher pricing. Revenues net of excise taxes decreased 5.2%.

• Reported OCI decreased 23.5%, primarily driven by 2026 costs related to the USSTC Facilities Consolidation, lower shipment volume and higher promotional investments, partially offset by higher pricing.

• Adjusted OCI decreased 8.0%, primarily driven by lower shipment volume and higher promotional investments, partially offset by higher pricing. Adjusted OCI margins decreased 2.0 percentage points to 66.7%.

First Half

• Net revenues decreased 1.8%, primarily driven by lower shipment volume and higher promotional investments, partially offset by higher pricing. Revenues net of excise taxes decreased 1.5%.

• Reported OCI decreased 12.4%, primarily driven by lower shipment volume, 2026 costs related to the USSTC Facilities Consolidation, higher promotional investments and higher costs, partially offset by higher pricing.

• Adjusted OCI decreased 4.2%, primarily driven by lower shipment volume, higher promotional investments and higher costs, partially offset by higher pricing. Adjusted OCI margins decreased 1.9 percentage points to 67.0%.

¹ Reported and adjusted OCI margins are calculated as reported and adjusted OCI, respectively, divided by revenues net of excise taxes.

Shipment Volume

Second Quarter

• Oral tobacco products segment reported domestic shipment volume decreased 8.5%, primarily driven by retail share losses and trade inventory movements, partially offset by the industry’s growth rate and other factors.

• When adjusted for trade inventory movements, oral tobacco products segment domestic shipment volume decreased by an estimated 2%.

First Half

• Oral tobacco products segment reported domestic shipment volume decreased 6.0%, primarily driven by retail share losses, partially offset by the industry’s growth rate and other factors.

• When adjusted for trade inventory movements, oral tobacco products segment domestic shipment volume decreased by an estimated 5.5%.

• Total oral industry volume increased by an estimated 6% for the six months ended June 30, 2026, primarily driven by growth in oral nicotine pouches, partially offset by declines in MST.

Note: Volume includes cans sold, as well as promotional units, but excludes non-domestic volume, which is currently not material to our oral tobacco products segment. New types of oral tobacco products, as well as new packaging configurations of existing oral tobacco products, may or may not be equivalent to existing MST products on a can-for-can basis. To calculate volumes of cans shipped, one can of oral nicotine pouches, irrespective of the number of pouches in the can, is assumed to be equivalent to one can of MST.

Retail Share and Brand Activity

Second Quarter

• on! retail share of the oral tobacco category was 8.6%, an increase of 0.3 share points versus the prior year and 0.8 share points sequentially.

• The nicotine pouch category was 59.9% of the oral tobacco category, an increase of 8.1 share points versus the prior year and 1.8 share points sequentially. on! retail share of the nicotine pouch category was 14.4%, a decrease of 1.7 share points versus the prior year and an increase of 1.0 share point sequentially.

First Half

• on! retail share of the U.S. oral tobacco category was 8.2%, a decrease of 0.3 share points.

• The nicotine pouch category was 59.0% of the oral tobacco category, an increase of 8.6 share points. on! retail share of the nicotine pouch category was 13.9%, a decrease of 2.9 share points.

Mac Livingston, Vice President of Investor Relations
Richard.M.Livingston@altria.com

Altria Client Services
Investor Relations
(804) 484-8222

Altria Client Services
Media Relations
www.altria.com/contact-us/media