Shares of Altria Group, Inc. (NYSE: MO) were down over 3% on Thursday, after the company delivered mixed results for the fourth quarter of 2025. While revenues surpassed expectations, earnings fell short. The tobacco giant has forecast earnings, on an adjusted basis, to grow in the upcoming fiscal year.
Revenue down, earnings flat
In the fourth quarter of 2025, Altria’s net revenues decreased 2% year-over-year to $5.84 billion. Revenues, net of excise taxes, dipped 0.5% to $5.08 billion but came ahead of estimates. On a reported basis, earnings per share fell 63% to $0.66 versus the year-ago period. Adjusted EPS remained flat at $1.30 and fell short of expectations.
Volumes decline in both segments
In Q4, Altria saw volumes decline across both its business segments. In the Smokeable Products segment, revenues decreased 2.7% YoY to $5.1 billion, mainly due to a 7.5% drop in shipment volume and higher promotional investments, partly offset by higher pricing.
Domestic cigarette shipment volume was down 7.9% in Q4, mainly due to declines in the industry caused by the growth of illicit e-vapor products and pressures on customers’ discretionary incomes. Marlboro shipments were down nearly 13% in the quarter. While cigarette shipments in the premium segment were down almost 11%, shipments in the discount category more than doubled, mainly due to the inflationary environment.
Revenues in the Oral Tobacco Products segment rose 2% to $706 million in Q4, driven mainly by higher pricing. Domestic shipment volume was down 6.3%, mainly due to retail share losses and trade inventory movements. Shipment volume for on! nicotine pouches was up 0.7% to 44.2 million cans.
Total US oral tobacco category share for on! nicotine pouches was 7.7% in Q4, down 1 share point from the previous year. In the US, the nicotine pouch category grew to 56.9% of the oral tobacco category, reflecting an increase of 10.4 share points versus the previous year. on!’s share of the nicotine pouch category fell 5.3 share points YoY to 13.4%.
Outlook
For fiscal year 2026, Altria expects adjusted EPS to range between $5.56-5.72, reflecting a growth of 2.5-5.5% from fiscal year 2025. The company expects adjusted EPS growth to be weighted to the back half of the year, reflecting a gradual increase in cigarette import and export activity over the course of the year.