Altria Shares Under Pressure as Quarterly Results Disappoint

Altria US02209S1033

Altria Group, Inc. released its fourth-quarter and full-year 2025 financial results on Thursday, delivering a performance that fell short of market expectations. The tobacco giant's report highlighted declining volumes, a significant impairment charge, and a subsequent drop in its share price of more than 2 percent.

The company's challenges were underscored by a substantial non-cash impairment charge of $1.3 billion against its e-vapor business segment. This accounting move signals a reassessment of the near-term prospects for this smoke-free alternative, reflecting slower-than-anticipated progress in the category.

Operational metrics revealed broad-based volume weakness:
* Cigarette Shipments: Domestic cigarette shipment volume experienced a sharp 7.9% decline during the quarter.
* Marlboro Market Share: The flagship Marlboro brand saw its retail share decrease by 1.5 percentage points to 39.8%, dipping below the symbolic 40% threshold.
* Oral Tobacco: The on! nicotine pouch brand also lost ground, with its share falling 5.3 percentage points to 13.4% of the oral tobacco segment.

Financially, Altria posted adjusted earnings per share (EPS) of $1.30 for Q4, flat compared to the prior-year period and below the $1.32 consensus estimate among analysts. Net revenues, which are reported after excise taxes, saw a slight decrease to approximately $5.08 billion.

Leadership Transition and Cautious Guidance for 2026

Looking ahead, management provided its outlook for the 2026 fiscal year. The company forecasts adjusted EPS in a range of $5.56 to $5.72, representing growth of 2.5% to 5.5% over the $5.42 reported for 2025. Executives indicated that they expect business momentum to build more substantially in the latter half of the year.

This period of operational recalibration will coincide with a planned leadership change. Salvatore Mancuso, who was elected to the Board of Directors on January 29, is slated to assume the role of Chief Executive Officer following the Annual Meeting of Shareholders on May 14, 2026.

Despite the current headwinds, Altria emphasized its continued commitment to shareholder returns. In 2025, the company returned a total of $8 billion to investors, allocated as $7 billion in dividend payments and $1 billion in share repurchases.

Market sentiment remains cautious as analysts weigh the persistent structural decline in the traditional tobacco business against the company's ongoing pivot toward smoke-free product categories. The latest results have intensified scrutiny on whether this strategic transition can ultimately regain traction.