Altria Group, Inc.

What they do

Altria's wholly owned subsidiaries include Philip Morris USA (the largest U.S. cigarette manufacturer) and John Middleton (cigars) in combustibles, and U.S. Smokeless Tobacco Company, Helix Innovations (oral nicotine pouches) and NJOY (e-vapor with FDA marketing granted orders) in smoke-free. It also holds a majority-owned joint venture, Horizon Innovations, for heated tobacco sticks, which had no U.S. products as of the latest 10-Q. Equity investments include Anheuser-Busch InBev, the world's largest brewer, and Cronos Group.

Revenue drivers

• Smokeable products (PM USA cigarettes, Middleton cigars) — The core profit engine, selling Marlboro and Black & Mild; the company reported domestic cigarette shipment volume declined an estimated 4.5% year-over-year in Q2 2026 when adjusted for trade inventory movements.
• Oral tobacco and nicotine pouches (USSTC, Helix) — Includes Copenhagen, Skoal and on! pouches; Helix expanded on! PLUS to 120,000 stores and planned additional flavor and nicotine-strength line extensions later in 2026.
• E-vapor (NJOY) — NJOY ACE has FDA marketing granted orders, but guidance assumes NJOY ACE does not return to the marketplace in 2026.
• Equity investments (ABI, Cronos) — Altria holds a significant stake in Anheuser-Busch InBev and a stake in Cronos Group; the 10-K/A adds ABI's consolidated financial statements as an exhibit under Regulation S-X Rule 3-09.

Recent performance

For Q2 2026, Altria reported net revenues of $6,111 million, up 0.1%, and revenues net of excise taxes of $5,356 million, up 1.2%. Adjusted diluted EPS was $1.48, up 2.8% from Q2 2025, while reported diluted EPS was $1.37, down 2.8%. First-half 2026 net revenues were $11,539 million, up 1.6%, and adjusted diluted EPS was $2.80, up 4.9%. The company returned $1.8 billion in dividends and repurchased 0.8 million shares for $55 million in the quarter.

Strategy

Management is executing a plan to advance its smoke-free portfolio, strengthen traditional tobacco businesses and return significant cash to shareholders. In smoke-free, Helix resumed shipments of 12-milligram on! PLUS in three states and planned national expansion in Q3 2026. In smokeables, PM USA is using a data-driven total portfolio approach, with Marlboro Cowboy Cut for premium smokers and Basic gaining discount traction. The company also cites its Optimize Accelerate initiative and investments in contract manufacturing and its broader Vision, including beyond U.S. and beyond nicotine opportunities.

Risks

• Declining cigarette volumes and discount share — U.S. cigarette industry volume declined an estimated 5% in Q2 2026, and discount retail share reached 33.8%, up 2.6 points year over year, pressuring premium brand volumes.
• Consumer discretionary income pressure — Management says inflationary pressure, elevated gas prices and macroeconomic uncertainty are weighing on adult nicotine consumers, particularly lower-income consumers.
• E-vapor regulatory and product-return uncertainty — Guidance assumes NJOY ACE does not return to the marketplace in 2026, and Altria cites moderated e-vapor industry growth affecting combustible and e-vapor volumes.
• Illicit flavored disposable e-vapor competition — The 10-Q specifically identifies illicit flavored disposable e-vapor products as a trend that could materially impact the business.

Outlook

Altria narrowed its 2026 full-year adjusted diluted EPS guidance to $5.61 to $5.72, representing 3.5% to 5.5% growth from a 2025 base of $5.42, and raised the lower end of the range. Guidance contemplates moderated e-vapor growth, increased macroeconomic uncertainty, investments in contract manufacturing, NJOY ACE not returning in 2026, reinvestment of Optimize Accelerate savings and Vision investments. The company also expects a greater benefit from cigarette import and export activity in the second half than in the first half.