Altria Group reported Q1 2025 net revenues of $5.26 billion, down 5.7% from Q1 2024, and revenues net of excise taxes of $4.52 billion, down 4.2%.

Reported diluted EPS declined by 47.9% to $0.63, mainly due to an $873 million non-cash goodwill impairment tied to the NJOY ACE product. Adjusted diluted EPS rose 6.0% to $1.23.

Net earnings fell 49.4% to $1.08 billion, with a reported tax rate of 36.0% and an adjusted tax rate of 23.5%. Altria reaffirmed full-year 2025 guidance for adjusted diluted EPS in the range of $5.30 to $5.45, representing 2% to 5% growth from the 2024 base of $5.19.

Smokeable products net revenues decreased 5.8%, while adjusted operating companies income (OCI) for this segment rose 2.7%, with adjusted OCI margins improving to 64.4%. Cigarette shipment volume dropped 13.7%, reflecting industry-wide declines and increasing competition from illicit e-vapor products. Marlboro's retail share in cigarettes declined to 41.0%.

Oral tobacco products net revenues grew slightly by 0.5%, and adjusted OCI was flat year-over-year. Oral tobacco shipment volume declined by 5.0%, but on! nicotine pouches gained retail share, reaching 8.8% of the total oral tobacco market.

NJOY consumables shipment volume grew 23.9%, but device shipments fell 70% due to the import ban on NJOY ACE. A related impairment charge was recorded. NJOY's U.S. retail share of consumables increased to 6.6%.

During Q1, Altria repurchased 5.7 million shares for $326 million and paid $1.7 billion in dividends. It expects to complete the current $1 billion share repurchase program by year-end 2025.

Altria emphasized its focus on transitioning to smoke-free products and investing strategically despite challenges in the e-vapor market and broader economic pressures.