Altria Group Q2 earnings miss as premium cigarette demand weakens

Altria Group reported second‑quarter earnings per share of $1.48, missing analysts' estimate of $1.50. Revenue net of excise taxes rose 1.2% to $5.36 billion, but premium Marlboro cigarette shipments fell 7.4% while discount cigarette volumes rose 67.3%. Shipments of the On! nicotine‑pouch line declined 4.2% in the quarter. The company attributed weaker demand to macro‑economic uncertainty and higher living costs linked to the Middle East conflict, prompting some smokers to switch to lower‑priced options.

CEO Sal Mancuso also highlighted strong demand for Altria’s nicotine‑pouch products, noting that the On Plus line, produced by subsidiary Helix Innovations LLC, expanded to 120,000 U.S. stores and will receive new flavors and nicotine strengths later in the year. For the first half, adjusted diluted EPS grew 4.9% and the firm returned nearly $3.9 billion to shareholders through dividends and share repurchases. Net revenues for the first half increased 1.6% to $11.5 billion, driven by higher sales in both smoke‑free and traditional tobacco segments.