Altria Group (MO) dipped in early trading on Thursday after falling slightly short of profit estimates with its fourth-quarter earnings report.
Net revenue decreased 2.1% during the quarter to $5.8 billion, primarily driven by lower net revenues in the smokeable products segment.
In the smokeable products segment, revenue decreased 2.7%, primarily driven by lower shipment volume and higher promotional investments, partially offset by higher pricing. Revenues net of excise taxes decreased 1.1%. The smokeable products segment reported domestic cigarette shipment volume decreased 7.9%, primarily driven by the industry’s decline rate (impacted by the continued growth of illicit e-vapor products and discretionary income pressures on ANCs) and trade inventory movements.
Oral tobacco product revenue increased 2.0%, primarily driven by higher pricing, partially offset by lower shipment volume and a higher percentage of on! Shipment volume relative to MST versus the prior year (mix change). Revenues net of excise taxes increased 2.9%.
Adjusted diluted EPS was level with last year’s mark at $1.30, driven by a lower adjusted tax rate and fewer shares outstanding, offset by lower adjusted OCI. The EPS tally missed the consensus estimate of $1.32
“2025 was a year of continued momentum for Altria, marked by strong financial performance, strategic progress across our smoke-free portfolio, new relationships supporting our long-term growth goals, and significant cash returns to shareholders,” stated CEO Billy Gifford.
Looking ahead, Altria Group (MO) sees 2026 adjusted EPS of $5.56 to $5.72 (midpoint $5.64) vs. the consensus estimate of $5.59. The EPS forecast represents a growth rate of 2.5% to 5.5% from a base of $5.42 in 2025.
Altira (MO) also issued its 2028 enterprise goals. The company aims to deliver a mid-single-digit adjusted diluted EPS compounded annual growth rate in 2028 from a $4.871 base in 2022. Through 2025, Altria (MO) delivered a reported diluted EPS CAGR of 8.9% and an adjusted diluted EPS CAGR of 3.6% from the 2022 base. In addition, Altria (MO) aims for a progressive dividend goal targeting mid-single-digit dividend per share growth annually through 2028. “In 2025, we increased our dividend by 3.9%, marking the 60th increase in the past 56 years. Future dividend payments remain subject to the discretion of our board,” highlighted the company.
Shares of Altria (MO) edged 0.3% lower in premarket trading to $63.13 vs. the 52-week range of $50.08 to $68.60. The dividend yield for new buyers of the stock is 6.7%.