Altria 2025 Financial Report Net Revenue Drops To $23.279 Billion

Altria disclosed its full year performance for 2025, with a net revenue of 23.279 billion US dollars, a year-on-year decrease of 3.1%. Domestic cigarette shipments decreased by 10% throughout the year; Nicotine pouches “on!” Had a 7.7% market share in the oral tobacco category in the United States in the fourth quarter, and was promoted for overseas testing through e-commerce and specific retail channels in Sweden and the United Kingdom; NJOY’s net revenue for the fourth quarter was $21 million, compared to a negative $13 million for the full year (due to factors such as returns); The company guidelines state that NJOY ACE is expected to not return to the market in 2026 due to the impact of the ITC import ban.

Core highlights:
• Earnings per share: Adjusted diluted earnings per share (EPS) for the full year of 2025 were $5.42, a year-on-year increase of 4.4%; The adjusted EPS for the fourth quarter remained unchanged at $1.30.
• Net revenue: Net revenue for the full year of 2025 decreased by 3.1% to $23.3 billion; Net revenue for the fourth quarter decreased by 2.1% to $5.8 billion.
• Traditional tobacco business: Despite adopting a price increase strategy, the annual cigarette shipment volume decreased by 10.0% due to the impact of illegal vapes and consumer disposable income pressure.
• E-cigarette Business (NJOY): Affected by the ITC ban and market competition, the vape business recorded approximately $2.2 billion in pre tax non cash impairment expenses for the year; NJOY ACE is not expected to return to the market in 2026.
• 2026 guidance: It is expected that the adjusted diluted earnings per share for the full year of 2026 will be between $5.56 and $5.72, with a growth rate of 2.5% to 5.5%.

According to the latest announcement released on the official website of Altria Group, Inc., the company has released its financial performance report for the fourth quarter and full year of 2025. The report shows that Altria achieved adjusted earnings per share growth in 2025 and made strategic progress in its smoke-free product portfolio, but also faced challenges from declining sales of traditional cigarettes and impairment of its e-cigarette business.

Financial performance highlights

• Earnings per Share (EPS): The diluted EPS reported for the full year of 2025 was $4.12, a year-on-year decrease of 37.0%, mainly due to the high base impact of non cash impairment expenses in the electronic cigarette business and proceeds from the sale of IQOS commercialization rights in the same period last year. Adjusted diluted earnings per share for the full year were $5.42, a year-on-year increase of 4.4%.
• Net revenue: The annual net revenue was 23.279 billion US dollars, a year-on-year decrease of 3.1%; After deducting consumption tax, the revenue was $20.139 billion, a year-on-year decrease of 1.5%; Net revenue for the fourth quarter decreased by 2.1% to $5.8 billion, a year-on-year decrease of 2.1%.
• Operating profit: Adjusted operating company revenue (OCI) for the full year increased by 1.3% to $11.064 billion, with a 0.1 percentage point increase in profit margin to 67.9%.

Performance of various business sectors

Ochia’s business is mainly divided into three categories: smokeable products (traditional cigarettes), oral tobacco products, and newly reported e-vapor products.

1. Smokeable Products Business

• Revenue and Profit: Net revenue for the fourth quarter decreased by 2.7% to $5.119 billion; After adjustment, OCI decreased by 2.4%. Annual net revenue decreased by 3.4% to $20.485 billion; Thanks to pricing strategy, OCI increased by 1.3% after full year adjustment.
• Shipment volume: Due to the continuous growth of illegal vapes and the pressure of inflation on the income of adult consumers, the domestic cigarette shipment volume decreased by 7.9% in the fourth quarter and 10.0% for the whole year. After adjusting for changes in trade inventory, the estimated annual decline is 9.5%.
• Market share: Marlboro’s retail market share in the cigarette category for the whole year was 40.5%, a year-on-year decrease of 1.2 percentage points; But its share in the high-end market increased slightly by 0.1 percentage points to 59.4%.

2. Oral Tobacco Products business

• Revenue and Profit: Net revenue increased by 2.0% to $706 million in the fourth quarter; However, due to the increase in SG&A costs and the decrease in sales, adjusted OCI decreased by 4.6%. Net revenue for the year increased by 0.9%, and adjusted OCI increased by 1.3%.
• Shipment volume: Domestic shipment volume decreased by 6.3% in the fourth quarter and 5.5% for the whole year.
• Nicotine pouche (on!): The nicotine pouche “on!” accounted for 7.7% of the US oral tobacco category in the fourth quarter. Despite facing fierce competition, “on!” And “on! PLUS” are expanding internationally through e-commerce and specific retail channels in Sweden and the UK.

3. E-vapor Products – NJOY

• Financial condition: Due to non cash impairment of goodwill and intangible assets faced by NJOY’s business, Altria recorded significant pre tax expenses for the year ($1.3 billion in the fourth quarter and $2.2 billion for the full year).
• Revenue: Net revenue from electronic cigarette products in the fourth quarter was $21 million, compared to a negative $13 million for the full year (due to factors such as returns).
• Regulatory challenge: The guidelines mention that NJOY ACE products are not expected to return to the market in 2026 due to the impact of the ITC import ban.

Shareholder Returns and Corporate Strategy

• Shareholder return: Altria paid $7 billion in dividends and repurchased $1 billion in stock for the entire year of 2025. As of the end of 2025, there is still a remaining $1 billion quota in the $2 billion stock repurchase plan.
• Cost optimization: The company’s “Optimize&Accelerate” plan is progressing smoothly and is expected to achieve at least $600 million in cumulative cost savings by the end of 2029.

2026 Performance Guidelines

Altria expects its adjusted diluted earnings per share for the full year of 2026 to be between $5.56 and $5.72, with a growth rate of 2.5% to 5.5% compared to the $5.42 base in 2025.
This guideline is based on the following assumptions
• Plan to increase investment to support contract manufacturing capabilities
• The impact of illegal product enforcement actions on the sales of traditional cigarettes and electronic cigarettes is limited
• NJOY ACE will not return to the market in 2026.
Billy Gifford, CEO of Altria, said, “2025 is a year for Altria to maintain sustained growth momentum, marked by strong financial performance, strategic progress in its smoke-free product portfolio, and significant cash returns to shareholders.

Reference: Altria Reports 2025 Fourth-Quarter and Full-Year Results; Provides 2026 Earnings Guidance – Altria Group, Inc.