Altria Group, Inc. (MO) is a leading American corporation that operates through several wholly owned subsidiaries, including Philip Morris USA Inc., John Middleton Co., U.S. Smokeless Tobacco Company LLC, Helix Innovations LLC, and NJOY, LLC. The company is primarily involved in the manufacture and sale of tobacco products, offering a range of smokeable, oral tobacco, and e-vapor products . Altria's product lines include well-known brands such as Marlboro cigarettes, Copenhagen and Skoal moist smokeless tobacco, and NJOY e-vapor products .
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Smokeable Products - Includes combustible cigarettes and machine-made large cigars, with Marlboro as the principal brand. PM USA is the largest cigarette company in the United States, and Middleton produces cigars .
- Cigarettes - PM USA's primary product, with a shipment volume of 76.3 billion units in 2023 .
- Cigars - Produced by Middleton, with a shipment volume of approximately 1.8 billion units in 2023 .
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Oral Tobacco Products - Consists of moist smokeless tobacco (MST) and snus products, featuring premium brands like Copenhagen and Skoal, and the value brand Red Seal. Helix Innovations also produces on! oral nicotine pouches .
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E-Vapor Products - Sold by NJOY, LLC, including the NJOY ACE, the only pod-based e-vapor product with FDA market authorization. NJOY contracts with third-party importers for its products .
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All Other - Encompasses research and development for new product platforms and technologies, including NJOY, Horizon, and Helix International .
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
William F. Gifford, Jr. ExecutiveBoard | Chief Executive Officer (CEO) | None | CEO since April 2020, joined MO in 1994, previously Vice Chairman and CFO, extensive leadership and financial expertise. | View Report → |
Charles N. Whitaker Executive | Senior Vice President, Chief HR Officer, and Chief Compliance Officer | None | Leads HR and compliance, employed by MO for at least five years, no external roles mentioned. | |
Daniel J. Bryant Executive | Vice President and Treasurer | None | Manages financial transactions and debt securities, no external roles mentioned. | |
Heather A. Newman Executive | Senior Vice President, Chief Strategy and Growth Officer | None | Oversees strategy, innovation, and investments, including Cronos and JUUL, no external roles mentioned. | |
Jody L. Begley Executive | Executive Vice President and COO | None | Leads operations, employed by MO for at least five years, no external roles mentioned. | |
Salvatore Mancuso Executive | Executive Vice President and CFO | None | Oversees financial operations, certified compliance with Sarbanes-Oxley Act, no external roles mentioned. | |
Steven D’Ambrosia Executive | Vice President and Controller | None | Oversees financial reporting and compliance, no external roles mentioned. | |
Debra J. Kelly-Ennis Board | Director | TFI International Inc.; Trivium Packaging B.V. | Director since 2013, former CEO of Diageo Canada, extensive marketing and leadership experience, serves on external boards. | |
Ellen R. Strahlman Board | Director | Eyenovia, Inc. | Director since 2020, expertise in innovation, biosciences, and regulated industries, serves on external boards. | |
George Muñoz Board | Director | Laureate Education, Inc.; BRC Inc.; National Geographic Society | Director since 2004, extensive accounting, financial, and public policy expertise, serves on multiple external boards. | |
Ian L.T. Clarke Board | Director | AGF Management Limited; First Capital REIT; Canadian Olympic Committee | Director since 2022, former CFO of Greater Toronto Airports Authority, expertise in finance and risk management, serves on external boards. | |
Kathryn B. McQuade Board | Director | None | Director since 2012, former CFO of Canadian Pacific Railway, extensive financial expertise, no current external roles mentioned. | |
M. Max Yzaguirre Board | Director | Aris Water Solutions, Inc.; WaFd, Inc.; Washington Federal Bank | Director since 2022, extensive leadership in regulated industries, serves on multiple external boards. | |
Marjorie M. Connelly Board | Director | PRA Group, Inc.; MissionOG | Director since 2021, extensive leadership in financial services, serves on external boards and advisory roles. | |
R. Matt Davis Board | Director | World Freerunning Parkour Federation; Saratoga WarHorse Foundation, Inc.; Michigan State University Alumni Board; Lake State Railway Company | Director since 2021, former President of Driftwood Leadership, extensive public policy and business leadership experience, serves on multiple external boards. | |
Virginia E. Shanks Board | Director | EPR Properties; Light & Wonder, Inc. | Director since 2017, expertise in marketing, IT, and cybersecurity, serves on external boards. |
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Given the ongoing patent infringement lawsuit filed by JUUL against NJOY, which could potentially result in an exclusion order and halt imports of NJOY products by the end of December, can you provide more details on your contingency plans, specifically regarding the substantial equivalence applications and design changes to circumvent the patents, and how confident are you in receiving FDA approval in time?
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Regarding your "optimize and accelerate" initiative aiming to achieve at least $600 million in cumulative cost savings over the next five years through modernizing processes and leveraging artificial intelligence and automation, can you elaborate on the specific areas where these savings will come from, how these changes will impact your workforce, and what risks may affect your ability to achieve these savings?
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With the growth of illicit flavored disposable e-vapor products contributing to elevated cigarette industry volume declines and impacting your e-vapor category growth, what specific actions are you taking to address this issue, and how effective do you expect regulatory enforcement to be in curbing the proliferation of these products?
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In light of Japan Tobacco's recent acquisition in the U.S. cigarette market and considering your partnership with them on the Ploom device, how might this change in their market presence impact your joint venture and the competitive dynamics in the U.S., and are there plans to adjust your strategy accordingly?
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Given the elevated cigarette industry volume declines due to economic pressures on consumers, the growth of the discount segment by 1.5 share points, and Marlboro's retail share decline both year-over-year and sequentially, how do you plan to balance your pricing strategy with market share retention in the premium segment while addressing the shift toward discount products?
Research analysts who have asked questions during ALTRIA GROUP earnings calls.
Bonnie Herzog
Goldman Sachs
6 questions for MO
Eric Serotta
Morgan Stanley
4 questions for MO
Matthew Smith
Analyst
4 questions for MO
Emma Rumney
Reuters
3 questions for MO
Gaurav Jain
Barclays
3 questions for MO
Mirza Faham Baig
UBS
3 questions for MO
Faham Baig
UBS Group
2 questions for MO
Callum Elliott
Bernstein
1 question for MO
Damian McNeela
Deutsche Numis
1 question for MO
Gerald Pascarelli
Needham & Company
1 question for MO
Matthew Edward Smith
Stifel
1 question for MO
Matt Smith
Bank of America
1 question for MO
Mirza Faham Ali Baig
UBS Investment Bank
1 question for MO
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
NJOY Holdings | 2023 | Deal Value & Structure: The acquisition had a total consideration of approximately $2.9 billion—including $2.75 billion in cash (net of cash acquired) and up to $500 million in additional contingent cash payments, funded via a $2.0 billion term loan facility, commercial paper, and available cash. Strategic Rationale & Business Fit: This move allowed Altria to gain full global ownership of NJOY’s e-vapor portfolio, including FDA-authorized products like NJOY ACE, thereby strengthening its presence in the growing e-vapor market. Key Capabilities & Notable Terms: The deal brought in advanced developed technology, valuable trademarks, supplier agreements, and resulted in $1,614 million in goodwill as recognition of future growth opportunities. |
Recent press releases and 8-K filings for MO.
- Adjusted diluted EPS rose 3.6% to $1.45, outperforming expectations despite a 3% decline in net revenues to about $6.1 billion
- Expanded its share repurchase program from $1 billion to $2 billion through 2026
- Declared its 60th consecutive dividend increase, underscoring strong shareholder returns
- Narrowed full-year 2025 adjusted EPS guidance to $5.37–$5.45, forecasting moderated Q4 performance
- Q3 adjusted diluted EPS grew 3.6% year-over-year, and smokeable products adjusted OCI increased 0.7% to nearly $3 billion with margins expanding to 64.4%.
- Reported domestic cigarette volumes declined 8.2% (adjusted ~9%), Marlboro’s premium share rose to 59.6%, discount brand Basic captured over half of the discount-segment growth, and cigar shipments increased 2%.
- Oral tobacco segment adjusted OCI dipped <1% while margins expanded 2.4 pp to 69.2%; ON shipment volume grew 1% to 42 million cans and ON’s retail share was 8.7% of the oral category.
- Launched premium ON+ in Florida, North Carolina, and Texas; ON+ PMTA applications included in FDA’s new oral pouch pilot; Horizon filed combined PMTA/MRTPA for Ploom heated tobacco; and initiated strategic collaboration with KT&G on international modern oral and U.S. non-nicotine products.
- Raised 2025 adjusted EPS guidance to $5.37–$5.45 (up 3.5–5%), increased the quarterly dividend 3.9% to $1.06, and expanded the share repurchase program to $2 billion through 2026.
- Adjusted diluted EPS of $1.45, a 3.6% year-over-year increase
- Quarterly dividend raised 3.9% to $1.06 per share, totaling $5.2 billion in dividends and $712 million in buybacks YTD, with repurchase program expanded to $2 billion
- Smokeable Products segment adjusted OCI of $2,956 million, up 0.7% yoy; total industry cigarette volume declined 9.0% in Q3
- Oral Tobacco Products volume fell 9.6% yoy to 178.2 million cans, while on! shipment volume edged up to 42.2 million cans
- Delivered 3.6% adjusted diluted EPS growth in Q3 and 5.9% for the first nine months; raised FY 2025 EPS guidance to $5.37–$5.45, with Q4 growth expected to moderate as share count benefits and MSA legal fund expirations lap.
- Smokeable products’ adjusted OCI rose 0.7% to $3 billion with margins expanding to 64.4%, while reported domestic cigarette volumes declined 8.2% (9% adjusted); Marlboro premium share reached 59.6% and Basic gained 1.4 ppts YOY, supporting a 45.4% total cigarette retail share.
- Oral tobacco segment saw ON shipments grow 1% to 42 million cans in Q3 (15% for nine months), with segment retail share at 31.1% and Q3 adjusted OCI down <1%; launched premium ON+ in FL, NC, and TX and included in the FDA’s PMTA pilot for nicotine pouches.
- Increased quarterly dividend by 3.9% to $1.06 and expanded share repurchase authorization to $2 billion through 2026; federal agencies seized over 4 million illicit vapor units, reinforcing Altria’s support for stronger regulatory enforcement.
- Altria delivered strong Q3 financial performance, with adjusted diluted EPS up 3.6% versus Q3 2024 and 5.9% growth for the first nine months; smokeable products’ adjusted OCI grew 0.7% to nearly $3 billion in Q3, with margins expanding to 64.4%.
- The company raised the low end of its 2025 EPS guidance to a range of $5.37–$5.45, reflecting continued momentum despite anticipated Q4 headwinds from share count and MSA fund lapses.
- Altria reaffirmed its commitment to shareholder returns, increasing its quarterly dividend by 3.9% to $1.06 (60th increase in 56 years) and expanding its share repurchase authorization to $2 billion through end-2026.
- Portfolio progress included growth in nicotine pouches (“on!” shipments +1% to 42 million cans), the launch of on! PLUS in three states, FDA PMTA/MRTPA filings for Ploom heated tobacco, and ongoing e-vapor patent litigation developments.
- A new collaboration with KT&G aims to expand modern oral products (including investment in LOOP snus), explore U.S. non-nicotine opportunities, and leverage duty-drawback efficiencies for international cigarette manufacturing.
- In Q3 2025, net revenues declined 3.0% to $6.07 billion while adjusted diluted EPS rose 3.6% to $1.45 (nine-month adjusted EPS of $4.12, up 5.9%).
- Altria narrowed its full-year 2025 adjusted diluted EPS guidance to $5.37–$5.45, representing 3.5%–5.0% growth from $5.19 in 2024; it also expects a 23%–24% adjusted tax rate and $175–$225 million of capital expenditures.
- The company repurchased 1.9 million shares in Q3 at an average price of $60.13 for $112 million (12.3 million shares YTD for $712 million) and expanded its buyback program to $2 billion through December 31, 2026.
- In August, Altria declared its 60th consecutive annual dividend increase, raising the annualized rate to $4.24 per share and paying $1.7 billion in Q3 dividends.
- Altria Group increased its quarterly dividend by 3.9% to $1.06, annualized to $4.24 with a 6.3% yield
- Marks the 60th dividend increase in 56 years, supporting its mid-single-digit growth target through 2028
- Dividend payable on October 10, 2025 to shareholders of record as of September 15, 2025
- 2025 EPS guidance raised to $5.35–$5.45, driven by growth in oral tobacco products
- On August 6, 2025, Altria Group, Inc. issued $500 million of 4.500% Notes due 2030 and $500 million of 5.250% Notes due 2035, settling on August 6, 2025.
- The Notes are fully and unconditionally guaranteed by Philip Morris USA Inc. and rank equally with all existing and future senior unsecured debt of both issuers.
- Interest is payable semi-annually on February 6 and August 6, beginning February 6, 2026, to holders of record on the preceding January 22 or July 22.
- The Notes are callable at 100% of principal (par) or a make-whole amount prior to specified dates and include a change-of-control repurchase at 101% of principal plus accrued interest.
- Q1 Financial Results: Net revenues reached $5.3B (down 5.7%), with reported diluted EPS at $0.63 (down 47.9%) and adjusted diluted EPS at $1.23 (up 6.0%) .
- Guidance Reaffirmed: Full-year adjusted diluted EPS is projected between $5.30–$5.45 (reflecting 2–5% growth over 2024) .
- Capital Returns: Returned capital included approximately $1.7B in dividends and $326M in share repurchases (with an additional $674M remaining), also noting repurchase of 5.7M shares .
- Smokeable Segment Performance: Adjusted operating income grew by 2.7% despite a 12% decline in domestic cigarette volumes, with margins improving from 60.2 to 64.4 .
- Oral Tobacco Highlights: The on! brand saw shipments rise from 33.3M to 39.3M, U.S. market share climb from 7.0% to 8.8%, and Helix shipping over 39 million cans .
- E-Vapor Update: A noncash goodwill impairment of $873M was recorded, reflecting adjustments in its e-vapor portfolio .