Altria Group, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2025, with net earnings of $6.9 billion, a decrease of 38.3% from $11.3 billion in 2024. The company's diluted earnings per share (EPS) also fell by 37% to $4.12, down from $6.54 in the previous year. Total revenues decreased by 3.1% to $23.3 billion, primarily driven by a decline in the smokeable products segment, which saw revenues drop to $20.5 billion from $21.2 billion in 2024. The decrease in revenue was attributed to lower shipment volumes and increased competition from discount brands, as well as the impact of illicit flavored disposable e-vapor products.
In terms of operational changes, Altria's smokeable products segment experienced a 10% decline in cigarette shipment volume, totaling 61.8 billion units, while the cigar segment saw a slight increase of 1.8% to 1.8 billion units. The oral tobacco products segment reported a shipment volume of 732.4 million units, down 5.5% from the previous year. The company noted that the discount retail share of the cigarette category reached 32.9%, reflecting a shift in consumer preferences amid ongoing economic pressures. Altria's e-vapor products segment reported a loss of $2.3 billion, largely due to non-cash impairments related to the NJOY acquisition and the impact of regulatory challenges.
Strategically, Altria has been focusing on its "Moving Beyond Smoking" initiative, which aims to transition adult smokers to smoke-free alternatives. The company completed the acquisition of NJOY Holdings in June 2023 for approximately $2.9 billion, gaining full ownership of NJOY's e-vapor product portfolio. However, the e-vapor segment faced significant challenges, including an exclusion order from the U.S. International Trade Commission prohibiting the importation and sale of NJOY ACE products, which contributed to substantial impairment charges. The company recorded a total of $1.2 billion in goodwill impairments related to its e-vapor reporting unit in 2025.
Looking ahead, Altria has set ambitious goals for 2028, including a mid-single digits compounded annual growth rate in adjusted diluted EPS and a progressive dividend growth target. The company is also focused on expanding its smoke-free product offerings and addressing the challenges posed by illicit trade and evolving consumer preferences. Despite the current challenges, Altria remains committed to its vision of a smoke-free future and is actively engaging with regulatory bodies to navigate the complex landscape of tobacco product regulation. The company anticipates that its ongoing initiatives and strategic investments will position it for future growth, although it acknowledges the uncertainties and risks associated with market dynamics and regulatory developments.
About ALTRIA GROUP, INC.
Altria Group, Inc. is a leading tobacco company focused on transitioning adult smokers to smoke-free alternatives. Its diverse portfolio includes cigarettes, cigars, smokeless tobacco, and e-vapor products, with brands like Marlboro and Copenhagen. With a significant market opportunity, Altria targets U.S. consumers aged 21 and older. Recent initiatives include acquiring NJOY and forming a joint venture for heated tobacco products, emphasizing innovation in reduced-risk offerings.
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