Altria Group has released its 2025 financial results, reaffirming its long-standing commitment to shareholder returns even as the company navigates the complexities of a transforming industry. The tobacco giant marked its 60th dividend increase in 56 years, a notable milestone for income-focused investors, while also continuing its share repurchase program.
Financial Performance: A Year of Contrasts
For the full 2025 fiscal year, Altria reported an adjusted earnings per share (EPS) of $5.42, representing a 4.4% increase over the prior year. The fourth quarter presented a mixed picture, however. Revenue reached $5.08 billion, surpassing analyst expectations. Conversely, the company’s adjusted EPS of $1.30 for Q4 came in slightly below market forecasts.
These figures underscore the ongoing transition within Altria’s business model. While the core combustible cigarette segment remains highly profitable, it is experiencing volume declines, with domestic shipment volumes dropping in the final quarter. Furthermore, the company’s balance sheet was impacted by a significant impairment charge related to its vaping investments.
Unwavering Capital Return Strategy
Despite these sector headwinds, Altria maintained its robust capital return policy. In 2025, the company returned a total of $8 billion to shareholders. This consisted of $7 billion in dividend payments and $1 billion allocated to buying back its own stock.
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The dividend was raised by 3.9% in August 2025, constituting the 60th increase in a 56-year span. This consistent record solidifies Altria’s appeal for portfolios seeking reliable income. The existing share repurchase authorization still has $1 billion remaining for use, as of the end of the fourth quarter.
Forward Guidance and Strategic Focus
Looking ahead to 2026, management provided an adjusted EPS forecast in the range of $5.56 to $5.72. If achieved, this would indicate continued, albeit moderate, earnings growth. The company’s financial foundation continues to be supported by its smokeable products division, which generated over $11 billion in adjusted operating income during 2025.
Investor attention is now turning to the Consumer Analyst Group of New York Conference scheduled for February 18, 2026, where Altria’s leadership is expected to speak. Market participants will likely listen for updates on the strategy for smoke-free alternatives—a segment that is growing but has yet to reach its full profit potential.
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