AI Takeaway
Altria Group (MO) delivered solid operating cash flow of $9.29B in FY2025, but net income fell sharply by 38.3% to $6.95B, largely due to prior-year gains not repeated, while gross margin improved to 62.5% and the company maintained its capital return program amid a deeply negative equity position.
Revenue
$23.28B
-3.08% YoY
EPS (Basic)
$4.12
-37.00% YoY
Gross Margin
62.5%
++2.65% YoY
Operating Income
$9.9B
-11.94% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue fell 3.1% year-over-year to $23.28B in FY2025, reflecting ongoing secular decline in cigarette volumes, a trend consistent with the broader tobacco industry's long-term headwinds.
Source: Source: 10-K Income Statement, FY2025
Despite lower revenues, gross profit rose 1.2% to $14.54B and gross margin improved approximately 270 basis points to 62.5%, suggesting effective pricing power and cost management in the core tobacco business.
Source: Source: 10-K Income Statement, FY2025
Net income dropped 38.3% to $6.95B from $11.26B in the prior year, with EPS (basic and diluted) falling from $6.54 to $4.12, likely reflecting large one-time gains or favorable items in FY2024 that did not recur in FY2025.
Source: Source: 10-K Income Statement, FY2025
2 more insights available
Upgrade to unlockAltria carries a stockholders' equity deficit of -$3.50B and long-term debt of $25.71B, with a debt-to-equity ratio that is mathematically negative and extreme (-10.98x). This capital structure leaves the company highly sensitive to interest rate changes and limits financial flexibility in a downturn.
Source: Source: 10-K Balance Sheet, FY2025
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.30 versus the $1.36 analyst consensus — a -4.2% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $23.28B | $24.02B | -3.08% |
Cost of Revenue | $5.6B | $6.08B | -7.90% |
Gross Profit | $14.54B | $14.37B | +1.22% |
Operating Income | $9.9B | $11.24B | -11.94% |
Net Income | $6.95B | $11.26B | -38.33% |
EPS (Basic) | $4.12 | $6.54 | -37.00% |
EPS (Diluted) | $4.12 | $6.54 | -37.00% |
R&D Expense | $195M | $208M | -6.25% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $35.02B | $35.18B | -0.45% |
Current Assets | $5.93B | $4.51B | +31.44% |
Total Liabilities | $38.47B | $37.37B | +2.95% |
Current Liabilities | $9.15B | $8.78B | +4.25% |
Stockholders' Equity | $-3.5B | $-2.24B | -56.48% |
Cash & Equivalents | $4.47B | $3.13B | +43.08% |
Long-Term Debt | $25.71B | $24.93B | +3.14% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $9.29B | $8.75B | +6.14% |
Investing Cash Flow | $-341M | $2.17B | -115.68% |
Financing Cash Flow | $-7.62B | $-11.49B | +33.73% |
Share Buybacks | $1B | $3.4B | -70.59% |
D&A | $266M | $286M | -6.99% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 62.5% | 59.8% | +2.65% |
Operating Margin | 42.5% | 46.8% | -4.28% |
Net Margin | 29.8% | — | — |
ROE | -198.4% | — | — |
ROA | 19.8% | — | — |
Current Ratio | $0.648 | — | — |
Debt to Equity | $-10.985 | — | — |
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Altria's FY2025 results showed resilient cash generation with operating cash flow rising 6.1% to $9.29B and gross margin expanding to 62.5%, but net income fell sharply by 38.3% to $6.95B due to large non-recurring gains in FY2024 that did not repeat. Revenue declined 3.1% to $23.28B, consistent with long-term cigarette volume trends.
Altria's net income fell 38.3% to $6.95B in FY2025 from $11.26B in FY2024, but operating cash flow actually increased 6.1% to $9.29B, suggesting the decline is driven by non-recurring items (such as investment gains or asset sale proceeds) that boosted FY2024 income but did not recur. The underlying tobacco business remained highly cash generative.
Altria carries significant leverage with $25.71B in long-term debt and a stockholders' equity deficit of -$3.50B, and its current ratio of 0.648 indicates short-term liabilities exceed short-term assets. However, its $9.29B in operating cash flow and 62.5% gross margin reflect a fundamentally strong and cash-generative core business.
Yes, Altria significantly reduced share repurchases by 70.6% to $1.0B in FY2025, down from $3.4B in FY2024, suggesting a shift in capital allocation priorities or a focus on balance sheet management given its elevated debt levels. Investors should monitor whether this reduction is temporary or signals a longer-term change in capital return strategy.
Altria's revenue declined 3.1% year-over-year to $23.28B in FY2025, reflecting ongoing secular volume declines in the cigarette category. Despite lower revenues, the company improved its gross margin by approximately 270 basis points to 62.5%, demonstrating effective pricing power in its premium tobacco brands.