Shares of Altria Group, Inc. (NYSE: MO) stayed inexperienced on Tuesday. The inventory has gained 19% year-to-date. The tobacco firm noticed revenues decline within the second quarter of 2025, weighed down by weak point in smokeable merchandise. Nevertheless, progress in oral tobacco merchandise helped to barely counteract this lower.
Q2 numbers
In Q2 2025, Altria’s revenues decreased almost 2% year-over-year to $6.1 billion, primarily as a result of decrease revenues within the smokeable merchandise phase, partly offset by increased revenues within the oral tobacco merchandise phase. Earnings per share, on an adjusted foundation, grew over 8% to $1.44 within the quarter.
Oral tobacco power and smokeables weak point
In Q2, revenues within the oral tobacco merchandise phase grew almost 6% YoY to $753 million, pushed primarily by increased pricing, partly offset by decrease cargo quantity. Home cargo quantity was down 1%, primarily as a result of retail share losses. Oral nicotine pouches had been the primary progress driver of this phase, with the on! model particularly delivering a robust efficiency.
Within the US, the nicotine pouch class now makes up 52% of the oral tobacco class. Whole US oral tobacco class share for on! nicotine pouches stood at 8.7%, up 0.7 share factors from final 12 months. On!’s cargo quantity elevated 26.5% YoY to 52.1 million cans within the quarter.
However, the smokeable merchandise phase noticed revenues decline by almost 3% YoY to $5.3 billion, pushed primarily by decrease cargo quantity. Home cigarette cargo quantity fell 10.2%, as a result of headwinds from the expansion in illicit disposable e-vapor merchandise, discretionary revenue pressures on shoppers, and retail share losses.
Marlboro’s retail share of the entire cigarette class dropped 0.9 share factors to 41% in comparison with final 12 months. The model’s share of the premium phase grew 0.2 share factors to 59.5% in Q2.
Outlook
For the complete 12 months of 2025, Altria expects adjusted EPS to vary between $5.35-5.45, representing a progress of 3-5% YoY.
