Altria Group Inc.
MOFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Financial Snapshot
ticker: MO step: 04 generated: 2026-05-12 source: quick-research
Altria Group, Inc. (MO) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Net Revenue | $20.5B | $20.4B | $20.7B | +2% |
| Adjusted Operating Margin (Smokeable) | 62% | 64% | 65.1% | +110bps |
| Adjusted EPS | $4.95 | $5.12 | $5.42 | +6% |
| Free Cash Flow | $8B | $8B | $8B | flat |
Q1 2026 Highlights
| Metric | Q1 2026 | YoY |
|---|---|---|
| Adj EPS | $1.32 | beat $1.25 est |
| Net Revenue | $5.43B | +3.2% |
| Smokeable Pricing | +9-10% | Marlboro price hike |
| Cigarette Industry Volume | -5% YoY | structural decline |
| Marlboro Retail Share | 39.7% (-1.4 pts) | Q1 erosion |
| on! Category Share | 13.4% (-4.2 pts) | losing to ZYN |
| on! Volume | +17.6% | absolute volume up |
Q2 2026 Highlights
| Metric | Q2 2026 | YoY |
|---|---|---|
| Revenue | $4.76B | beat by 3.94% |
| EPS | beat by 5.6% |
2026 Guidance (mgmt reaffirmed)
| Metric | 2026 Guide |
|---|---|
| Adj. EPS | $5.56-5.72 (+2.5-5.5% vs $5.42 in 2025) |
| Dividend Growth | mid-single-digit (~3-5%) |
Product Detail
| Product | Status |
|---|---|
| Marlboro | 59.5% premium segment; 39.7% total; price hike Apr 2026 |
| on! PLUS | First FDA pilot program authorization; nationwide retail March 2026 |
| NJOY ACE | ITC exclusion order; cannot return to US in 2026; impaired |
| USSTC (Copenhagen, Skoal) | Declining category |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$9B |
| Capital Expenditures | ~$300M |
| Free Cash Flow | ~$8.5B |
| Cash & Equivalents | ~$3B |
| Total Debt | ~$24B |
| Net Debt/EBITDA | ~1.8x |
Key Ratios (approximate, May 2026)
- P/E (forward): ~10x | EV/EBITDA: ~9x | Dividend Yield: ~6.5%
- FCF Yield: ~9%
- Payout Ratio: ~75%
Forward Estimates
- FY2026E Revenue: ~$21B (+1-2%)
- FY2026E Adj EPS: $5.56-5.72 (mgmt; +2.5-5.5%)
- FY2027E EPS: ~$5.85 (+3-5%)
- FY2028E EPS: ~$6.10 (modest growth as smokeable continues declining)
Capital Return
- Dividend $4.24 annual = ~$7B paid — 6.5% yield
- 57+ consecutive years of dividend growth (Dividend King — highest yield)
- Buybacks: $1-2B annual run rate
- Total capital return: ~$8B annual
- Combined yield: ~8.5%
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $MO.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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