DEAR FELLOW SHAREHOLDERS
2025 was another year of continued momentum for Altria. We made meaningful progress advancing our smoke-free portfolio, delivered solid financial results and returned significant cash to you, our valued shareholders. Our teams executed with discipline in a complex environment across our traditional tobacco businesses while continuing to invest in our smoke-free products and Vision.
Advancing Our Vision.
The potential for tobacco harm reduction in the U.S. remains significant with more than half of U.S. nicotine consumers now choosing smoke-free products. In 2025, our companies achieved several milestones that we believe position us for sustained success in the evolving U.S. nicotine space.
Helix grew on! reported shipment volume to more than 177 million cans while on! retail share of the oral tobacco category reached 8.2%. Notably, Helix received marketing authorization from the FDA for certain on! PLUS products and submitted PMTAs for on! PLUS in six additional flavor varieties across three nicotine strengths. We believe on! PLUS is a differentiated, premium product that is well positioned to meet adult consumer preferences and support continued growth for Helix.
In heated tobacco, Horizon, our joint venture with JT Group, submitted a combined PMTA and modified risk tobacco product application to the FDA for Ploom and Marlboro heated tobacco sticks. Our teams continue to advance Ploom's go-to-market plans, and we look forward to engaging smokers with this innovative product.
Internationally, we expanded our position in the fastest-growing smoke-free category, nicotine pouches. In 2025, on!, on! PLUS and FUMi competed across attractive and growing markets through e-commerce and targeted retail distribution. Early results are encouraging and are providing valuable insights to inform our domestic and international smoke-free product strategies.
In e-vapor, we are working on a pipeline of products designed to meet evolving adult consumer preferences. We believe that responsible participation with products that resonate with adult consumers supports our Vision and broader smoke-free strategy. Until meaningful progress is made to address the illicit market and increase product authorizations, we plan to take a disciplined approach to our investments in the e-vapor category.
Achieving the full promise of tobacco harm reduction requires a fully-enforced, science-based regulatory framework. In 2025, we continued to advocate for increased FDA authorization of smoke-free products and meaningful enforcement against illicit products. We were encouraged by increased engagement and action from federal agencies and government officials throughout the year.
While this is early progress, more action is needed. Sustained enforcement and a predictable regulatory framework are essential to transition smokers to smoke-free alternatives and create a level playing field for all manufacturers.
Resilient Traditional Tobacco Businesses.
Our traditional tobacco businesses demonstrated continued resilience and delivered strong financial performance in 2025. For the full year, the smokeable products segment contributed over $11 billion in adjusted OCI* and expanded adjusted OCI margins by 1.8 percentage points to 63.4%*. These results were supported by strong net price realization and effective cost management. Marlboro remained the dominant leader in the premium segment, and PM USA's total portfolio approach enabled it to compete effectively across price tiers.
Our oral tobacco products segment financials remained strong, driven by Copenhagen, the leader in MST. Segment adjusted OCI grew by 1.3%* and adjusted OCI margins expanded to 67.9%*.
Strong Financial Performance and Shareholder Returns.
We grew full-year adjusted diluted earnings per share by 4.4%* and continued our long-standing commitment to deliver shareholder value by returning approximately $8 billion to shareholders through dividends and share repurchases combined. Our Board raised the dividend for the 60th time in 56 years. At year-end 2025, we had $1 billion remaining under our current $2 billion share repurchase program, which expires at the end of 2026.
Leadership Transition.
After a distinguished career of over 30 years with the Altria family of companies, William “Billy” Gifford, our CEO, has decided to retire, effective at the conclusion of the 2026 Annual Meeting of Shareholders. Billy has guided Altria through a period of significant change, reinforcing our financial strength, sharpening our strategic focus and advancing our Vision. His collaborative leadership style built a stronger organization that we believe will continue to forge our path forward in Moving Beyond Smoking®. The Board thanks Billy for his leadership, integrity and unwavering commitment to Altria. The Board looks forward to driving continued progress toward our Vision under Sal Mancuso's leadership.
Looking Forward.
The opportunities and challenges in the U.S. nicotine space remain dynamic, but our priorities are unchanged: responsibly deliver smoke-free alternatives, defend and grow the profitability of our traditional tobacco businesses over the long term, allocate capital with discipline and continue returning substantial cash to shareholders.
We are confident in our path forward, and we thank you for your continued support of Altria.
Kathryn B. McQuade
Chair of the Board
William F. Gifford, Jr.
Chief Executive Officer
Xavier analysis
The letter consistently uses positive language like 'continued momentum,' 'meaningful progress,' 'solid financial results,' and expresses confidence in the company's path forward despite acknowledging a 'complex environment.'
Strategic themes by emphasis
#1Advancing Our Vision (Smoke-free & Harm Reduction Portfolio)
#2Resilient Traditional Tobacco Businesses
#2Strong Financial Performance and Shareholder Returns
#3Leadership Transition
#3Looking Forward (Future Priorities)
12 named projects & initiatives
on!, on! PLUS, Helix, Horizon, Ploom, Marlboro heated tobacco sticks +6 more
7 product, 4 other, 1 partnership
Forward-looking statements
10 total: 0 quantified, 7 directional, 3 vague
Capital allocation priority
Shareholder Returns (Dividends & Buybacks) → Investing in Smoke-Free Products & Vision → Defend and Grow Traditional Tobacco Businesses → Disciplined Capital Allocation
Key quotes
“2025 was another year of continued momentum for Altria. We made meaningful progress advancing our smoke-free portfolio, delivered solid financial results and returned significant cash to you, our valu”
Summarizes the key achievements and positive performance for the year, hitting on strategic progress, financial results, and shareholder returns.
“The potential for tobacco harm reduction in the U.S. remains significant with more than half of U.S. nicotine consumers now choosing smoke-free products.”
Highlights the large market opportunity for the company's core strategic shift towards harm reduction.