Core Insights - Altria Group, Inc. and Philip Morris International Inc. are leading companies in the global tobacco industry, focusing on cigarette and nicotine product sales amid changing consumer preferences [1][2] - Altria has a market capitalization of approximately $116.6 billion, while Philip Morris has a larger market value of around $291.9 billion, reflecting its international presence and leadership in next-generation products [1][2] Altria Group, Inc. Overview - Altria's investment appeal is supported by resilient cash-flow generation and consistent shareholder returns, with a 4.4% adjusted EPS growth in 2025 and approximately $8 billion returned to shareholders through dividends and share repurchases [3][4] - The smokeable products segment generated over $11 billion in adjusted operating income in 2025, with margins expanding to 63.4% due to strong pricing execution [4] - Altria is advancing its smoke-free portfolio, particularly in modern oral nicotine, with a 10.9% shipment volume growth for the on! brand in 2025 [5] - Domestic cigarette volumes declined approximately 9.5% in 2025, indicating ongoing pressure in the combustible category [6] Philip Morris International Inc. Overview - Philip Morris demonstrated a strong growth profile in 2025 with a 14.8% adjusted EPS growth, net revenues exceeding $40 billion, and organic operating income growth of 10.6% [7][8] - Smoke-free products accounted for 41.5% of total net revenues and nearly 43% of gross profit in 2025, with IQOS heated tobacco units and ZYN nicotine pouches showing significant growth [9][10] - Despite a 1.5% decline in combustible cigarette shipments, pricing actions helped lift combustible net revenues by 2.5% [10] - Management projects 2026 adjusted EPS growth of 11.1% to 13.1%, indicating confidence in the company's operating momentum [11] Comparative Analysis - Altria's shares increased by 26.1% over the past year, outperforming Philip Morris's 21.7% gain, although both lagged behind the industry growth of 33.8% [12] - Altria trades at a forward P/E ratio of 12.4, while Philip Morris trades at a forward P/E of 21.82, indicating differing valuations [16] - Philip Morris is viewed as the stronger growth story due to its accelerated shift toward smoke-free products and global scale, while Altria is seen as a stable income choice reliant on its U.S. combustible franchise [17]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-08940 ALTRIA GROUP, INC. (Exact name of registrant as specified in its charter) | Virginia | | | 13-3260245 | | --- | --- | --- | --- | | State or other jurisdiction of incorporation or organiz ...

Key Takeaways Altria's Marlboro held a 40.5% retail share in 2025 despite ongoing U.S. cigarette volume declines.MO offset lower shipment volumes with higher pricing, supporting Smokeable Products' profitability.Increased promotional spending and trade-down trends weighed on margins amid evolving competitive dynamics.Altria Group, Inc. (MO) is facing an important challenge for its flagship Marlboro brand as the U.S. cigarette market continues to shrink. In the fourth quarter of 2025, the company’s results u ...

Core Viewpoint - Altria offers a high yield of 6.3%, but the business faces significant challenges, making it a riskier investment compared to Hormel Foods, which has a lower yield of approximately 5% but a more stable business model [1][4][11]. Altria Overview - Altria's primary business revolves around cigarette sales, which are declining; for instance, cigarette volumes fell by 10% in 2025 [4]. - The company has managed to support revenue and earnings through price increases and stock buybacks, allowing for ongoing dividend increases, but it remains fundamentally challenged [5]. Hormel Foods Overview - Hormel Foods is a large food manufacturer focused on protein products, aligning well with current consumer trends [6]. - The company is currently facing challenges, particularly in passing rising costs onto consumers, and is refocusing on cost control and portfolio overhaul, including plans to sell its whole turkey business [7][9]. - Hormel's interim CEO, Jeff Ettinger, has implemented strategies leading to five consecutive quarters of organic sales growth, indicating positive momentum [10]. - Hormel has a 5% yield and has increased its dividend annually for over 50 years, earning the title of Dividend King, which reflects a strong commitment to returning value to investors [11].

Core Insights - Altria is transitioning from traditional tobacco products to innovative alternatives, emphasizing products like on! PLUS and advocating for stronger enforcement against illicit markets in the U.S. [1] - The company continues to provide strong cash returns to shareholders while navigating this transition [1] - CEO Billy Gifford will retire in May, with Sal Mancuso set to take over leadership [1] Company Overview - Altria has been a leader in the tobacco industry for decades, known for its iconic Marlboro brand [1] - The management team includes key figures such as Sal Mancuso (CFO), Heather Newman (Chief Strategy and Growth Officer), and Bob McCarter (General Counsel) [3] Financial Considerations - Future dividend payments and share repurchases are subject to the discretion of the Board [4] - The presentation includes discussions on non-GAAP financial measures, with further explanations available on Altria's website [4]

Altria Conference Call Summary Company Overview - **Company**: Altria Group, Inc. - **Industry**: Tobacco and Nicotine Products Key Points Transition to Smoke-Free Products - Altria is transitioning smokers to a smoke-free future while competing for existing smoke-free nicotine consumers and exploring growth opportunities beyond the U.S. and nicotine [3][4] - The U.S. nicotine space is evolving with innovative smoke-free products driving change, creating unprecedented opportunities for Altria's businesses [4] Market Dynamics - In 2025, growth in e-vapor and oral tobacco offset cigarette industry volume declines, leading to a total equivalized nicotine volume growth of approximately 2.5% last year [5] - Over half of the 55 million U.S. nicotine consumers now use smoke-free products, with more than one-third using them exclusively [5] Consumer Segmentation - Altria identifies three consumer groups: 1. **Traditionalists**: Loyal to established brands like Marlboro and Copenhagen [6][7] 2. **Transitioners**: Open to switching to smoke-free alternatives [8] 3. **Variety Seekers**: Early adopters of innovation, seeking different product forms and flavors [9] Product Performance - The oral tobacco category grew by 12.5% last year, with nicotine pouches driving over 40% growth [10] - Altria's oral tobacco products segment grew adjusted OCI by a CAGR of 1.3% over the past five years [10] - The introduction of on! PLUS, a premium nicotine pouch, is expected to meet evolving consumer preferences [11][12] Regulatory Environment - Altria is advocating for improved enforcement against illicit markets, which represent a significant portion of the e-vapor category [17][18] - The company is optimistic about FDA authorizations for new products, including additional flavors and strengths for on! PLUS [13][14] Financial Performance - Altria's smokable product segment has grown adjusted OCI by more than $950 million over the past five years, with adjusted OCI margins expanding to 63.4% [26] - The company has delivered over $100 billion in cash returns to shareholders since the 2008 PMI spinoff, with a recent quarterly dividend increase of 3.9% [35][36] Future Growth Opportunities - Altria is exploring international and non-nicotine opportunities, including energy products through collaboration with Proper Wild [33][34] - The company aims to commercialize at least five non-nicotine products by 2028, with strong consumer interest in energy shots and gummies [34][35] Strategic Initiatives - The Optimize and Accelerate initiative aims to generate at least $600 million in savings to reinvest in growth, enhancing operational and financial flexibility [21][22] - Altria is modernizing its marketing strategies to engage consumers through new channels, including social media and in-person events [14][15] Conclusion - Altria is well-positioned to capture the growing smoke-free opportunity while maintaining strong cash returns and shareholder value through its traditional tobacco businesses [38]

1 | ALCS | CAGNY | 2.18.26 | For Investor Purposes ONLY CAGNY 2026 Safe Harbor Statement ALCS | CAGNY | 2.18.26 | For Investor Purposes ONLY ALCS | CAGNY | 2.18.26 | For Investor Purposes ONLY Statements in this presentation that are not reported financial results or other historical information are "forward- looking statements" within the meaning of Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates and expectations, and are not guarantee ...

Core Viewpoint - Altria Group is considered a strong buy-and-hold investment despite controversies surrounding its tobacco business, with a history of benefiting long-term investors [1]. Financial Performance - Altria shares have generated annualized returns of nearly 18% over the past five years, outperforming the S&P 500's annualized total returns of around 13% during the same period [2]. - The company has a market capitalization of $112 billion, with a current stock price of $66.54 and a dividend yield of 6.25% [3]. - Altria's total returns since February 2021 have reached 128.6%, significantly higher than the S&P 500's 85.8%, Coca-Cola's 81.7%, and Procter & Gamble's 41.6% [6]. Dividend Growth - Altria is classified as a "Dividend King," having over 50 years of consecutive dividend growth, with a forward dividend yield of 6.3% [5]. - The company has maintained steady earnings and dividend growth in the low single-digit range, primarily through price increases on smokeable products [10]. Market Position and Challenges - Altria generates approximately 88% of its total net revenue from smokeable products, lagging behind competitors like Philip Morris International, which derives around 41.5% of its revenue from smoke-free products [7][8]. - Past investments in smoke-free products, such as Juul Labs and Njoy, have resulted in significant impairment losses and legal challenges [9]. Future Outlook - Altria's modest earnings growth is expected to support its 6.3% dividend, positioning the company for solid returns in the future [11]. - The potential for valuation expansion exists, as Altria currently trades at 12 times forward earnings compared to Philip Morris International's 22 times [13]. - The company could enhance its nicotine pouch business through acquisitions, which may lead to stronger earnings growth and improved stock performance [12].

Core Insights - Prevention Ed has been awarded a four-year contract worth $1.2 million through JUUL settlement funds to implement youth prevention and leadership programming in Montgomery County, Pennsylvania [1][4]. Funding and Programming - The funding will support research-aligned prevention programming, youth leadership development, and harm reduction related to nicotine use, including the establishment of the Montgomery County Teen Senate [2]. - Over the contract period, structured learning, peer leadership opportunities, and school-based prevention programming will be provided, with data collection and evaluation to track outcomes [3]. Organizational Goals and Impact - Prevention Ed emphasizes the importance of treating young people as equal partners in substance use prevention, providing them with research-informed information that reflects their real-world experiences [4]. - The initiative will also be supported by Prevention Ed's Global Prevention Fellowship, which prepares future prevention leaders through training and hands-on learning [5]. Organizational Background - Prevention Ed is recognized as a global leader in school-based substance use prevention, partnering with schools and communities worldwide to deliver tailored education and leadership initiatives [7].

Core Insights - Altria Group, Inc. is focusing on sustaining its earnings per share (EPS) growth, projecting adjusted EPS of $5.56 to $5.72 for 2026, indicating a growth of approximately 2.5% to 5.5% [1][8] Earnings and Financial Management - The company is experiencing a decline in cigarette shipment volumes, which dropped about 10% in 2025, prompting reliance on price increases to maintain profitability and adjusted operating margins above 60% [2][8] - Share repurchases are significant for EPS growth, with $1 billion remaining under its repurchase authorization through the end of 2026, allowing the company to enhance per-share earnings by reducing shares outstanding [3][8] Investment in New Products - Altria is investing in smoke-free products, including nicotine pouches and e-vapor offerings, which are expanding but require ongoing investment, potentially limiting their near-term contribution to earnings [4] Competitive Landscape - In comparison, Philip Morris International Inc. is projected to achieve adjusted EPS growth of 11.1% to 13.1% in 2026, supported by its smoke-free business contributing over 40% of revenues [5] - Turning Point Brands, Inc. is also expected to maintain steady EPS growth through pricing discipline and expansion in modern oral nicotine products [6] Stock Performance and Valuation - Altria's shares have increased by 8.9% in the past month, outperforming the industry growth of 6.8% [7] - The company trades at a forward price-to-earnings ratio of 12.02X, lower than the industry average of 16.08X [9] - The Zacks Consensus Estimate for Altria's 2026 EPS has slightly decreased to $5.57, while the estimate for 2027 has increased to $5.75 [10]