Altria Group, Inc.

Altria reported adjusted diluted EPS of $1.48 in Q2, up 2.8% year over year, and $2.80 for the first half, up 4.9%. Smokeable products adjusted OCI rose 2.4% to $3.0 billion in Q2 and 4.2% to $5.7 billion in the first half, with adjusted OCI margins of 64.8% and 64.9%, respectively. Reported domestic cigarette volumes declined 3.2% in Q2 and 2.8% in the first half; when adjusted for trade inventory movements, declines were estimated at 4.5% and 4.0%. Oral Tobacco Products adjusted OCI fell 8% in Q2 and 4.2% in the first half, while ABI adjusted equity earnings rose 21.5% to $158 million. Management raised the low end of 2026 adjusted EPS guidance and now expects $5.61 to $5.72, implying 3.5% to 5.5% growth versus a 2025 base of $5.42.

Sal Mancuso said the company is executing on three priorities: advancing the smoke-free portfolio, defending profitability in traditional tobacco, and returning capital to shareholders. He highlighted on! PLUS expansion to 120,000 stores, early traction from the product, and planned line extensions later this year, while also pointing to Marlboro Cowboy Cut as a value option that fits the brand’s American heritage. His tone was confident but measured, repeatedly noting that consumers remain under economic pressure and that second-half investments will rise as the company supports launches.

Heather Newman emphasized that first-half results were strong enough to justify narrowing full-year guidance. She cited Q2 adjusted EPS of $1.48, smokeable OCI of $3.0 billion, smokeable OCI margin of 64.8%, Oral Tobacco Products OCI margin of 66.7%, and ABI adjusted equity earnings of $158 million. She also said Altria returned about $3.6 billion in dividends and repurchased 5.3 million shares for $335 million in the first half, ended Q2 with $665 million remaining under the buyback program, and had a debt-to-EBITDA ratio of 1.9x, in line with the roughly 2x target.

Analysts focused on why the second-half EPS setup is not above the strong first-half pace, with management saying timing differences, higher investment for on! PLUS extensions, and duty drawback timing explain the pattern. On cigarettes, management said volume declines are moderating because cross-category switching into illicit e-vapor appears to be slowing as enforcement improves, even as gas prices and inflation still pressure consumers. On on! PLUS, management said the brand is gaining share, the soft-pouch format is resonating, and new 12 mg and flavor extensions should support further growth, though Q2 shipments were affected by prior-year comparisons and launch timing.