Altria Group Inc. reported fourth-quarter and full-year 2025 results Thursday, highlighting its ongoing investment in its smoke-free products.
The tobacco company reported net revenues for the fourth quarter declined 2.1% to $5.85 billion, primarily driven by lower cigarette sales. Revenues net of excise taxes decreased 0.5% to $5.1 billion.
Altria CEO Billy Gifford said the company delivered solid financial performance in 2025, and it continued to make progress across its smoke-free portfolio.
Altria said the nicotine pouch category in the United States grew to 56.9% of the U.S. oral tobacco category, with Altria’s On Plus product holding 13.4% of that category, a decrease of 5.3 share points versus the prior year. The Food and Drug Administration in December issued marketing granted orders to six On Plus nicotine pouch products. The products are made by Helix Innovations LLC, a subsidiary of Altria, Richmond, Virginia.
Altria noted ongoing challenges from illicit e-vapor products. On the earnings call, Gifford told investors that illicit products represent more than 70% of the category.
“The proliferation of illicit disposable products, pace of FDA authorizations and the intellectual property landscape remain significant headwinds,” Gifford said, according to a transcript from financial services site AlphaSense.
The Marlboro cigarette maker’s smokable products segment reported a 7.9% drop in its domestic cigarette shipment volumes for fourth-quarter 2025. The company said the decline was primarily driven by the industry’s decline rate, affected by the growth of illicit e-vapor products and trade inventory movements. Turning to cigars, the company reported cigar shipment volume increased 4.2% for fourth-quarter 2025.
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