Altria Group (MO) Q2 2026 earnings summary

Executive summary

• Net revenues for the first half of 2026 increased 1.6% to $11.54 billion, driven by higher pricing in smokeable products despite volume declines and increased discount brand share.

• Adjusted diluted EPS grew 2.8% in Q2 and 4.9% in the first half, reflecting higher operating income and fewer shares outstanding from repurchases.

• Nearly $3.9 billion was returned to shareholders in the first half through dividends and share repurchases.

• The company continues to face discretionary income pressures on adult nicotine consumers, regulatory challenges, and evolving consumer preferences, impacting premium brand volumes.

• Regulatory environment improved, with FDA actions providing clarity for nicotine pouch and e-vapor products, and enforcement actions against illicit e-vapor manufacturers.

Financial highlights

• Adjusted diluted EPS was $1.48 in Q2 (up 2.8%) and $2.80 for the first half (up 4.9%).

• Adjusted OCI for smokeable products grew 2.4% to $3.02B in Q2 and 4.2% to $5.69B in the first half; margins expanded to 64.8% in Q2 and 64.9% in the first half.

• Oral tobacco products adjusted OCI declined 8% in Q2 to $460M and 4.2% in the first half to $896M; margins fell to 66.7% in Q2 and 67.0% in the first half.

• Paid $3.6B in dividends and repurchased 5.3M shares for $335M in the first half.

• Operating income for the six months rose 21.4% to $6.09B, mainly due to the absence of prior-year impairment charges.

Outlook and guidance

• Full-year 2026 adjusted diluted EPS guidance narrowed to $5.61–$5.72, representing 3.5%–5.5% growth from 2025.

• Capital expenditures for 2026 expected to be $375–$450 million, mainly for manufacturing consolidation.

• Expect higher export volume and related tax refunds in the second half, with balanced benefit across Q3 and Q4.

• Guidance reflects moderated e-vapor growth, macroeconomic uncertainty, and excludes NJOY ACE reentry in 2026.

• The company targets mid-single digit annual dividend growth through 2028 and expects sufficient liquidity for ongoing operations and capital needs.