Q1 2026 Altria Group Inc Earnings Call Transcript
Key Points
- Altria Group Inc (MO) reported a strong start to the year with a 7.3% increase in adjusted diluted EPS for the first quarter.
- The company's smokeable products segment generated strong income growth, with Marlboro strengthening its position in the premium segment.
- The oral tobacco products segment, particularly the on! brand, performed well, with shipment volume growing nearly 18% in the first quarter.
- Altria Group Inc (MO) continues to return substantial capital to shareholders, paying approximately $1.8 billion in dividends and repurchasing 4.5 million shares for $280 million in the first quarter.
- The company maintains a strong balance sheet, having retired over $1 billion of debt and achieving a total debt-to-EBITDA ratio of 1.9 times as of March 31.
- The macroeconomic environment remains challenging, with elevated everyday expenses and higher gas prices impacting discretionary income among price-sensitive adult smokers.
- Marlboro's overall retail share declined by 1.4 share points year-over-year due to trade-down dynamics in the discount segment.
- The oral tobacco products segment reported a 3.1% decrease in shipment volume, with a decline in MST volumes offsetting growth in on! products.
- The e-vapor category faces challenges from illicit flavored disposable products, which remain prevalent despite signs of moderation.
- Altria Group Inc (MO) is constrained by the limited number of FDA-authorized e-vapor products, impacting the potential for tobacco harm reduction.
(audio in progress)
At the end of today's earnings release. Future dividend payments and share repurchases remain subject to the discretion of our Board of Directors. We will report our financial results in accordance with US generally accepted accounting principles.
Today's call will contain various operating results on both a reported and adjusted basis. Adjusted results exclude special items that affect comparisons with reported results. Descriptions of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures are included in today's earnings release and on our website at altria.com. Finally, all references in today's remarks to nicotine consumers or consumers within a specific nicotine category or segment refer to existing adult nicotine consumers 21 years of age or older. With that, I'll turn the call over to Willy.
Thanks, Mac.
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