Altria profit falls on prior-year gain, narrows 2025 view

(Alliance News) - Altria Group Inc on Wednesday reported a sharp drop in second-quarter profit due to tough comparisons with the prior year's one-time gains, though adjusted earnings improved and the company narrowed its full-year guidance.

For the three months to June 30, the Richmond, Virginia-based tobacco company posted net earnings of USD2.38 billion, down 37% from USD3.80 billion a year prior. Reported diluted earnings per share fell to USD1.41 from USD2.21.

The decline largely reflected a USD2.7 billion gain in the prior-year quarter from the sale of IQOS commercial rights. Excluding special items, adjusted EPS rose 8.3% year-on-year to USD1.44, driven by improved operating income and a lower share count.

Quarterly revenue slipped 1.7% to USD6.10 billion from USD6.21 billion, mainly due to weaker sales in the smokeable products segment. However, revenue net of excise taxes inched up 0.2% to USD5.29 billion.

Altria raised the lower end of its adjusted diluted EPS guidance for 2025 and now expects full-year earnings between USD5.35 and USD5.45, reflecting growth of 3.0% to 5.0% from the USD5.19 reported in 2024.

The narrowed range accounts for tariffs, regulatory uncertainty, and reinvestment plans, including support for smoke-free products.

"We continued the pursuit of our vision while maintaining our strong and profitable core businesses," said Chief Executive Officer Billy Gifford. He highlighted strong growth in the oral tobacco segment, particularly from on!, and continued returns to shareholders.

In the quarter, Altria returned over USD2 billion to shareholders via USD1.7 billion in dividends and USD274 million in share repurchases. It expects to complete its USD1 billion buyback program by year-end.

Shares in Altria were 2.0% higher at USD60.58 in New York on Wednesday afternoon.

By Eva Castanedo, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2025 Alliance News Ltd. All Rights Reserved.