MO

Mama's Creations, Inc. MAMA is likely to witness top- and bottom-line growth when it reports second-quarter fiscal 2027 earnings on Sept. 3. The Zacks Consensus Estimate for revenues is pegged at $53.1 million, indicating an increase of 50.9% from the year-ago reported number. The consensus mark for earnings has remained unchanged over the past 30 days at 5 cents a share, which suggests a jump of 66.7% from the figure reported in the year-ago period. MAMA has a trailing four-quarter surprise of 129.2%, on average. Mama's Creations, Inc. price-consensus-eps-surprise-chart | Mama's Creations, Inc. Quote Mama’s Creations’ performance is likely to have benefited from the ramp-up of products launched late in the first quarter. More than a dozen new items were introduced across major retailers, including Walmart, Target and Food Lion, with these placements expected to ramp up through the balance of fiscal 2027. Walmart’s new chicken items were already witnessing improving weekly velocities and had reached more than 2,000 stores by early June.Broader retail distribution may also have supported performance. The company added products across Albertsons divisions, Weis and Fresh Market, while Costco’s everyday-item status in the Northeast continued to provide steady volumes. The addition of branded beef meatballs as an everyday item in Costco’s San Diego region may have given another incremental volume opportunity.The Bay Shore acquisition is likely to have remained another growth contributor, supported by cross-selling opportunities across legacy and Crown 1 customers. Improving utilization at the Bay Shore facility, centralized procurement and logistics, and the completed ERP integration across all three manufacturing facilities may also have aided productivity and operating leverage.On the downside, inflation-related input pressures and continued trade support behind new product launches could have weighed on margins. However, efficiencies from moving recently launched items toward steadier production levels may have partly mitigated these pressures. Our proven model doesn’t conclusively predict an earnings beat for Mama's Creations this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. Mama's Creations currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.The Chefs' Warehouse, Inc. CHEF currently has an Earnings ESP of +3.02% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $1.13 billion, indicating a 10.4% rise from the figure reported in the prior-year quarter. The consensus estimate for Chefs' Warehouse’s earnings is pegged at 61 cents per share, implying 22% growth from the year-ago quarter. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.Mondelez International, Inc. MDLZ currently has an Earnings ESP of +0.39% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $9.97 billion, which suggests 2.4% growth from the figure reported in the prior-year quarter. The Zacks Consensus Estimate for Mondelez’s upcoming quarter’s EPS is pegged at 72 cents, which declined 1.4% from the year-ago period figure. MDLZ delivered a trailing four-quarter earnings surprise of 5.8%, on average.Altria Group, Inc. MO currently has an Earnings ESP of +0.37% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $5.33 billion, which indicates an increase of 1.5% from the figure reported in the prior-year quarter.The Zacks Consensus Estimate for Altria’s upcoming quarter’s earnings per share is pegged at $1.50, which calls for 3.5% growth from the figure reported in the prior-year quarter. MO delivered a trailing four-quarter earnings surprise of 1.3%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mama's Creations, Inc. (MAMA) : Free Stock Analysis Report Altria Group, Inc. (MO) : Free Stock Analysis Report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Campbell's Company CPB is likely to witness a top and bottom-line decline when it reports fourth-quarter fiscal 2026 earnings on Sept. 3. The Zacks Consensus Estimate for revenues is pegged at $2.15 billion, indicating a decrease of 7.3% from the prior-year quarter’s reported figure. The consensus mark for earnings has remained unchanged over the past 30 days at 40 cents a share, which implies a decline of 35.5% from the figure reported in the year-ago period. CPB has a trailing four-quarter earnings surprise of about 2%, on average. The Campbell's Company price-consensus-eps-surprise-chart | The Campbell's Company Quote Campbell’s fiscal fourth-quarter performance is likely to have remained under pressure, reflecting continued weakness in its Snacks business. During the fiscal third-quarter earnings discussion, management highlighted weak consumption across salty snacks, amid a competitive environment and pressure on consumer spending. Although the company has been tightening assortments, sharpening price-pack architecture and improving trade efficiency, these initiatives were still in the early stages and might have limited the pace of sales recovery. Our model suggests a 4% volume decline and a 10.5% revenue decline for the Snacks segment in the fiscal fourth quarter. Margin performance is also likely to have remained under pressure. Tariffs, input-cost inflation, logistics expenses and unfavorable volume leverage have weighed on profitability. Increased promotional support and efforts to strengthen competitiveness across key categories might also have exerted pressure on margins. Nevertheless, supply-chain productivity improvements and cost-saving initiatives are likely to have provided some offset. We expect the adjusted gross margin to contract 200 basis points to 28.6% in the fiscal fourth quarter.However, Campbell’s Meals & Beverages segment is likely to have remained resilient, supported by durable at-home cooking trends and strength across key brands. The summer launch of Campbell’s Condensed Sauces may also have aided demand by tapping consumers’ interest in convenient at-home meal preparation and flavor exploration. Our proven model doesn’t conclusively predict an earnings beat for Campbell's this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. Campbell's carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -4.22%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.The Chefs' Warehouse, Inc. CHEF currently has an Earnings ESP of +3.02% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $1.13 billion, indicating a 10.4% rise from the figure reported in the prior-year quarter. The consensus estimate for Chefs' Warehouse’s earnings is pegged at 61 cents per share, implying 22% growth from the year-ago quarter. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.Mondelez International, Inc. MDLZ currently has an Earnings ESP of +0.39% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pinned at $9.97 billion, which indicates a 2.4% growth from the figure reported in the prior-year quarter. The Zacks Consensus Estimate for Mondelez’s upcoming quarter’s EPS is pegged at 72 cents, which declined 1.4% from the year-ago period figure. MDLZ delivered a trailing four-quarter earnings surprise of 5.8%, on average.Altria Group, Inc. MO currently has an Earnings ESP of +0.37% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $5.33 billion, which indicates an increase of 1.5% from the figure reported in the prior-year quarter.The Zacks Consensus Estimate for Altria’s upcoming quarter’s earnings per share is pegged at $1.50, which indicates a 3.5% growth from the figure reported in the prior-year quarter. MO delivered a trailing four-quarter earnings surprise of 1.3%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Campbell's Company (CPB) : Free Stock Analysis Report Altria Group, Inc. (MO) : Free Stock Analysis Report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Download the Complete Report Here Key Takeaways: Best-in-class execution enabled AIIR to grow through a severe supply-chain disruption while protecting the underlying earnings base. Revenue rose 3.7% y/y to $206.9 million in 1H26 from $199.5 million, gross profit increased 2.4% to $116.8 million from $114.0 million, and adjusted EBITDA was stable at $71.7 million despite FSM shipment volumes declining 9.0%. Global Travel Retail volumes fell 46.5%, while FSM shipments excluding GTR declined 6.6%, reflecting the closure of the Strait of Hormuz, which historically carried approximately 70% of shipment volumes. The disruption was most acute in March, when shipment volumes declined 38.6%, before returning to growth in June. Importantly, customer purchase orders remained intact and wholesaler inventories declined, confirming that the shortfall reflected shipment availability rather than weaker end demand. Revenue growth and stable adjusted EBITDA through the disruption underscore the strength and resilience of a category-leading franchise with an estimated 36%-44% volume share across its operating markets. Strong pricing power more than offset shipment pressure, supported by the category’s relatively low consumer spend. FSM revenue increased 3.4% y/y to $204.7 million despite the 9.0% shipment decline, reflecting 14.0% price/mix growth as AIIR front-loaded 2026 pricing to offset higher logistics and raw-material costs and prioritized supply to higher-ASP markets. The ability to deliver double-digit price/mix without meaningful share erosion underscores the strength of the franchise, particularly given annual U.S. shisha spend of around $110 versus more than $2,000 for cigarettes, close to $1,000 for pod-based vapes and around $400 for nicotine pouches. This relatively low spend provides room to offset cost inflation through pricing without materially affecting affordability. The 14.0% 1H contribution should moderate in 2H as comparisons toughen and mix shifts toward lower-ASP markets, while AIIR expects approximately 4%-6%+ price/mix in a normal year, supported by category leadership, innovation and premiumization. Supply-chain redesign is turning the 1H disruption into a longer-term resilience investment. AIIR is using the event to structurally de-risk its supply chain rather than simply restore the prior logistics model. Following the Hormuz closure, the company established alternative outbound routes through Oman and Saudi Arabia and diversified inbound raw-material sourcing, reducing reliance on a corridor that historically carried ~70% of shipments. AIIR incurred $3.8 million of extraordinary disruption costs in 1H26, primarily from air freight and temporarily elevated ingredient procurement, while additional land and sea rerouting costs and logistics inflation remained within adjusted operating earnings. Manufacturing diversification is also accelerating, with the Romania facility expected to be commissioned by year-end 2026 and operational in 2027 alongside UAE and Poland production. The near-term cost burden is weighing on 2026 profitability, but the redesigned network should meaningfully reduce the risk that future regional disruptions translate into another sharp interruption in shipments. Geographic diversification helped contain the disruption, with strength in the Americas and MEAA offsetting continued pressure in Europe. Reported earnings were impacted by Nasdaq listing-related charges, while underlying operating profitability remained substantially more stable. Reported EBITDA was a loss of $52.1 million versus positive $61.0 million in 1H25, while net loss was $81.8 million versus $32.0 million of profit and EPS was $(0.57) versus $0.22. The gap to $71.7 million of adjusted EBITDA was driven primarily by $48.2 million related to equity issued at listing, $47.7 million of listing-related cash expenses and $12.4 million of share-based compensation, with smaller adjustments for public-company readiness, supply-chain disruption and accelerated PMTA spending. Listing-associated costs totaled approximately $103 million and account for most of the 1H impact, while share-based compensation will continue through remaining vesting periods and some incremental public-company costs will remain in the ongoing expense base. PMTA spending is expected to step down materially in 2027, helping narrow the gap between reported and underlying earnings over time. NGC is beginning to build an additive growth layer alongside the resilient core. Revenue increased 37.5% y/y to $2.2 million from $1.6 million, supported by OOKA and the European Crown Switch rollout, while adjusted EBITDA loss improved to $7.9 million from $9.3 million. At only ~1% of consolidated revenue, NGC remains immaterial to current group revenue, although the $7.9 million adjusted EBITDA loss remains a drag on group profitability. Importantly, management sees effectively no cannibalization from NGCs, with Al Fakher U.S. shipment volumes remaining resilient from 2018-25 even as vape volumes increased ~3x and nicotine pouch volumes ~40x. This gives AIIR a differentiated growth setup versus traditional tobacco companies, as Crown Switch, OOKA and other NGC platforms can add revenue without needing to offset structural decline in the core business. OOKA remains a longer-duration premiumization lever within the existing shisha occasion, with management expecting gradual adoption through the medium term and launch-market economics indicating ~20x revenue and ~15x gross profit per kilogram versus traditional molasses. First-half cash conversion was held back by working capital, primarily due to shipment timing and a sharp receivables build. Cash used in operating activities was $0.1 million in 1H26 versus $9.0 million generated in 1H25 despite $71.7 million of adjusted EBITDA, as trade and other receivables absorbed $58.8 million of cash, inventories used $3.8 million and higher trade and other payables contributed $9.1 million. Current receivables increased to $127.8 million from $93.2 million at 2025-end, while inventories rose only $6.3 million to $61.6 million from $55.3 million and trade and other payables increased to $127.0 million from $99.1 million. Management expects working capital to normalize as shipment cadence improves in 2H, which should support a meaningful recovery in cash conversion after the disruption-heavy first half. For context, 2025 operating cash flow of $115.9 million represented approximately 83% of adjusted EBITDA. Balance-sheet flexibility remains intact despite sizable listing-related and strategic cash outflows. Cash declined to $85.4 million at June 30 from $119.5 million at 2025-end, while total borrowings stood at $430.2 million and net debt at $344.8 million, equivalent to 2.48x LTM adjusted EBITDA. First-half outflows included $28.9 million related to reorganization transactions, $13.4 million of interest paid, approximately $5.3 million of combined property, plant and intangible investment and $5.0 million of acquisition payments. Management expects year-end leverage to remain broadly stable versus 2025 after absorbing listing costs and the Greentank investment, before deleveraging resumes over the medium term. The capital-light model is increasingly creating optionality for shareholder returns as near-term cash demands normalize. 2026 capex is expected at $15-$18 million and the effective tax rate at approximately 15%, while no buybacks are currently included in 2026 or medium-term guidance. Management has also identified ordinary dividends and special dividends as potential future distribution mechanisms and explicitly indicated that it does not intend to accumulate excess capital indefinitely. With leverage already at approximately 2.5x and normalized cash conversion historically strong, capital allocation should increasingly balance continued deleveraging, selective NGC investment and potential shareholder returns. 2H26 should mark a shift back toward volume-led growth as supply normalization, channel replenishment and geographic mix replace exceptional 1H pricing as the primary drivers. 2026 FSM shipment volumes are expected to be broadly stable y/y despite an approximately 1.5% GTR headwind, requiring a meaningful rebound after the 9.0% 1H decline. In contrast, price/mix should moderate materially from the 14.0% achieved in 1H as prior-year comparisons become tougher and shipments normalize into lower-ASP markets. The earnings setup therefore shifts from pricing-led resilience in 1H toward volume recovery in 2H, supported by intact purchase orders, depleted channel inventory and improved shipment availability. Management guides to 4%-6% 2026 revenue growth and low-to-mid-single-digit adjusted EBITDA growth. Based on the midpoint of the revenue range and 4% EBITDA growth within that outlook, 2026 revenue can be estimated at approximately $419.7 million and adjusted EBITDA at $144.9 million. This implies 2H revenue of approximately $212.8 million, +6% y/y, and adjusted EBITDA of approximately $73.1 million, +8%. EBITDA growth remains below AIIR’s historical high-single-digit trajectory due to incremental public-company costs, factory-footprint reorganization and elevated logistics/raw-material expenses, partly offset by U.S. tariff refunds and excise-duty drawbacks; management also indicated that some macro conservatism is embedded in the topline outlook. Net financing costs are expected to remain broadly stable in 2026. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. The valuation thesis remains anchored in the resilience and cash-generation potential of the core FSM franchise, with additional upside from normalization and NGC optionality. AIIR continues to demonstrate strong pricing power, leading market shares and resilient end demand, while the 1H26 disruption appears to have delayed shipments rather than impaired the underlying franchise. With volumes recovering, temporary supply-chain and listing-related costs expected to ease, and medium-term growth supported by share gains, premiumization and new-market expansion, the earnings profile should normalize without requiring a meaningful contribution from NGCs. Crown Switch and other NGC initiatives, continued deleveraging and potential shareholder returns therefore represent incremental sources of value creation rather than assumptions required to support the core valuation case. AIIR now trades materially below the SPAC transaction valuation, providing a more attractive entry point as earnings normalize. As of the 8/21 close, AIIR has a market capitalization of approximately $1.24 billion and enterprise value of approximately $1.56 billion, well below the $1.75 billion transaction EV. Based on management-guidance-derived 2026 revenue of $419.7 million and adjusted EBITDA of $144.9 million, increasing to $440.7 million and $156.5 million, respectively, in 2027, AIIR trades at approximately 3.7x 2026E EV/Sales and 10.8x EV/EBITDA, declining to 3.5x and 10.0x in 2027E. The forward earnings progression requires only modest margin expansion, with adjusted EBITDA margin increasing from approximately 34.5% in 2026E to 35.5% in 2027E. The discount to tobacco and nicotine peers appears meaningful relative to AIIR’s forward growth profile. On 2026E figures, AIIR trades at approximately 3.0x P/S and 10.8x EV/EBITDA versus peer averages of 4.0x and 12.5x, respectively. On 2027E, the multiples decline to approximately 2.8x and 10.0x versus peer averages of 3.8x and 11.4x. This implies an approximately 14% discount to peers on forward EV/EBITDA, despite AIIR’s expected ~5% revenue growth and ~8% adjusted EBITDA growth in 2027 comparing favorably with peer-average growth of approximately 4% and 5%. Some discount is warranted given AIIR’s lower 2026E adjusted EBITDA margin of 34.5% versus the 40.9% peer average, but the current valuation does not appear to fully reflect the combination of core earnings resilience, improving growth and NGC optionality. Value creation should increasingly be driven by execution against visible operating and strategic catalysts. Near-term catalysts include successful 2H shipment recovery following the 9.0% 1H decline, normalization of working capital and cash conversion, continued U.S. and Saudi share gains, and improving European profitability as shipment timing normalizes. Beyond 2026, continued deleveraging and potential shareholder returns should strengthen the equity story, while Crown Switch PMTA acceptance and subsequent U.S. commercialization would provide incremental upside not assumed in the 2027E figures derived from management’s FSM growth framework. Delivery against these milestones should support a narrowing of the current discount to peers and the prior transaction valuation, while weaker shipment recovery, persistent cash absorption or higher NGC investment without commercial traction would justify a continued discount. Read Exec Edge’s Initiation on AIR Global PLC Here Download the Complete Report Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post AIR Global’s Best-in-Class 1H Performance Amid Disruptions, 2H Recovery – Quarterly Update Report appeared first on ExecEdge.

In the past few days, Altria Group released its second-quarter results, reporting year-over-year adjusted earnings growth even though it missed consensus estimates and continues to face declining U.S. cigarette volumes and uneven oral tobacco performance. Management also raised the lower end of its 2026 earnings outlook, highlighting pricing power, margin gains, and cigarette import/export benefits as key supports for future profit resilience despite product mix and volume headwinds. Now, we’ll explore how Altria’s higher earnings outlook, underpinned by pricing and margin strength, affects its broader investment narrative. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own Altria today, you largely have to believe its pricing power, smokeable margins, and shareholder returns can offset steady declines in U.S. cigarette volumes and uneven smoke-free traction. The latest earnings miss does not materially change that near term, but the raised 2026 outlook reinforces the key short term catalyst: management’s ability to defend profits through pricing while containing volume and mix pressure. The biggest current risk remains ongoing cigarette declines combined with inconsistent performance in oral and other smoke-free products. One recent announcement that matters here is Altria’s continued share repurchase activity, with about 22.4 million shares bought back for roughly US$1,337.9 million under its latest plan. This capital return supports per share earnings growth, which ties directly into the higher earnings outlook management just reaffirmed. However, buybacks do not directly address core product challenges, so their impact ultimately depends on how well Altria stabilizes smoke-free performance and manages volume declines across its portfolio. But behind this resilience, cigarette volume declines and uneven smoke-free trends remain a risk investors should be aware of as they consider... Read the full narrative on Altria Group (it's free!) Altria Group's narrative projects $20.9 billion revenue and $9.7 billion earnings by 2029. This assumes flat yearly revenue and a roughly $1.7 billion earnings increase from $8.0 billion today. Uncover how Altria Group's forecasts yield a $70.36 fair value, a 6% upside to its current price. Some of the lowest estimate analysts already assumed roughly flat revenue near US$20.7 billion and earnings of about US$9.5 billion by 2029, so this mixed quarter could either reinforce their more pessimistic view on smoke free risks or prompt revisions if pricing and margins prove more resilient than they expected. Explore 4 other fair value estimates on Altria Group - why the stock might be worth over 2x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Altria Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free Altria Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Altria Group's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Rare earth metals are the new gold rush. Find out which 28 stocks are leading the charge. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Altria Group, Inc. MO missed second-quarter consensus expectations, but adjusted earnings still increased year over year and management raised the low end of its 2026 earnings outlook. That combination puts more weight on execution in the second half. Pricing, smokeable margins and cigarette import and export benefits support the earnings path. Cigarette volume declines, weaker oral tobacco results and higher capital spending remain the main offsets. Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. Quote Adjusted second-quarter earnings were $1.48 per share, up 2.8% year over year but below the Zacks Consensus Estimate of $1.50. Higher adjusted operating companies income and a lower share count supported the increase. Net revenues rose 0.1% to $6.11 billion. Revenues net of excise taxes increased 1.2% to $5.356 billion, below the consensus mark of $5.362 billion. Altria narrowed 2026 adjusted earnings guidance to $5.61-$5.72 per share from $5.56-$5.72. The revision leaves the upper end unchanged while lifting the lower end by 5 cents. The new range implies 3.5-5.5% growth from adjusted earnings of $5.42 per share in 2025. Management narrowed the range after first-half adjusted earnings increased 4.9% to $2.80 per share. Smokeable price realization was 4.5% in the second quarter, led by Marlboro pricing and partly offset by Basic mix. Adjusted smokeable operating companies income increased 2.4% to $3.02 billion, while margin expanded 30 basis points to 64.8%. Management continues to expect a greater benefit from cigarette import and export activity in the second half than in the first half. It expects that benefit to be more balanced between the third and fourth quarters. Domestic cigarette shipment volume declined 3.2% in the second quarter, or an estimated 4.5% after adjusting for trade inventory movements. Oral Tobacco Products revenues fell 5.3%, while adjusted operating companies income declined 8% as lower volume and higher promotional investment weighed on results. Capital expenditure expectations increased to $375-$450 million from $300-$375 million. Peer execution also raises the competitive bar. Philip Morris International Inc. PM said smoke-free products generated about 42% of first-half 2026 net revenues, while British American Tobacco p.l.c. BTI reported 18% growth in first-half New Category revenues. The Zacks Consensus Estimate calls for third-quarter earnings of $1.50 per share and fourth-quarter earnings of $1.40. The full-year 2026 earnings estimate stands at $5.67 per share. The consensus sales estimates are $5.33 billion for the third quarter and $5.09 billion for the fourth quarter. Those figures provide the next operating benchmarks as investors assess whether pricing and second-half benefits are offsetting volume and spending pressure. Image Source: Zacks Investment Research The narrowed guidance provides a clearer 2026 earnings range, but the operating path still depends on pricing, margin discipline and the timing of second-half benefits. Volume pressure and weaker oral tobacco profitability leave less room for execution slippage. MO currently carries a Zacks Rank #3 (Hold), a VGM Score of C, Value Score of C, Growth Score of C and Momentum Score of D. The Style Score framework favors A and B grades, particularly alongside Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks, while a Zacks Rank #3 can still support holding an existing position. MO’s C and D scores point to a more mixed near-term setup. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Altria Group, Inc. (MO) : Free Stock Analysis Report Philip Morris International Inc. (PM) : Free Stock Analysis Report British American Tobacco p.l.c. (BTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Altria Group (MO) is back in focus after reporting second quarter 2026 results and updating investors on its latest share repurchase activity through June 30, 2026. See our latest analysis for Altria Group. Despite the second quarter earnings update and ongoing buybacks through June 30, Altria Group’s recent momentum has cooled, with the share price down 9.4% over 30 days and 9.1% over 90 days. However, the 3 year total shareholder return of 89.8% and 5 year total shareholder return of 97.1% highlight a much stronger longer term picture. If Altria’s recent moves have you reassessing your income holdings, it could be a useful moment to broaden your search and uncover 19 top founder-led companies Altria Group now trades at a discount to both analyst targets and an estimated fair value, even after its recent slide. Is the market rightly cautious about the tobacco outlook, or has pricing swung too far on a mature cash generator like this? Altria Group’s most followed narrative places fair value at $70.36, above the recent close at $65.03. This frames the current pullback as a discount to that storyline. Read the complete narrative. Curious what sits behind that fair value gap to the current $65.03 price? The narrative leans heavily on stable revenue, fatter margins, and a future earnings profile that assumes a richer profit mix from next generation products. The way those moving parts fit together may surprise you. Result: Fair Value of $70.36 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still real risks for Altria Group if illicit e-vapor remains above 60% of the market or if next generation products gain traction more slowly than analysts expect. Find out about the key risks to this Altria Group narrative. With both risks and rewards on the table for Altria Group, do you want to rely on headlines or your own judgment? Take a closer look at the 3 key rewards and 2 important warning signs If Altria Group has you thinking harder about where your next dollar goes, do not stop at just one stock. Broaden your watchlist with focused ideas that match your goals. Target higher income potential by scanning companies that feature 9 dividend fortresses and see which payouts stand out for you. Spot opportunities that combine quality with pricing appeal through the 51 high quality undervalued stocks and compare how each stock stacks up. Limit unwanted surprises by reviewing companies highlighted in the 83 resilient stocks with low risk scores and see which ones fit your comfort zone. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, July 30, 2026 at 9:00 a.m. ET Vice President of Investor Relations - Mac Livingston Chief Executive Officer - Salvatore Mancuso Chief Financial Officer - Heather Newman Operator: Good day, and welcome to the Altria Group 2026 Second Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Mac Livingston, Vice President of Investor Relations. Please go ahead, sir. Mac Livingston: Thanks, Olivia. Good morning, and thank you for joining us. This morning, Sal Mancuso, Altria's CEO; and Heather Newman, our CFO, will discuss Altria's 2026 second quarter business results. Earlier today, we issued a press release providing our results. The release, presentation and quarterly metrics are all available at altria.com. During our call today, unless otherwise stated, we're comparing results to the same period in 2025. Our remarks contain forward-looking statements, including projections of future results. Please review the forward-looking and cautionary statements section at the end of today's earnings release for various factors that could cause actual results to differ materially from projections. Future dividend payments and share repurchases remain subject to the discretion of our Board of Directors. We report our financial results in accordance with U.S. generally accepted accounting principles. Today's call will contain various operating results on both a reported and adjusted basis. Adjusted results exclude special items that affect comparisons with reported results. Descriptions of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures are included in today's earnings release and on our website at altria.com. Finally, all references in today's remarks to nicotine consumers or consumers within a specific nicotine category or segment refer to existing adult nicotine consumers 21 years of age or older. With that, I'll turn the call over to Sal. Salvatore Mancuso: Thanks, Mac. Good morning, and thank you for joining us. In the second quarter, our operating companies continue to deliver against the priorities we outlined at the start of the year, advancing our smoke-free portfolio, strengthening our traditional tobacco businesses and delivering significant returns to shareholders. In smoke-free, Helix expanded on! PLUS to 120,000 stores nationwide, engaged in trial-generating activities and prepared for additional line extensions to come later this year. In smokeable products, PM USA advanced its data-driven total portfolio approach to drive profitability as Marlboro Cowboy Cut generated strong interest among premium smokers and Basic continued to gain traction in discount. We delivered strong first half results, driving adjusted diluted EPS growth of 4.9% and returned nearly $3.9 billion to shareholders through dividends and share repurchases combined. This performance reflects steady, disciplined execution and confidence in our full year plan, which allowed us to narrow our earnings guidance for the year. This morning, I'll cover second quarter and first half results from on!, recent FDA actions and e-vapor category dynamics and how our operating companies celebrated America's 250th anniversary. I'll then turn it over to Heather, who will provide further detail on our business results and financial outlook. Let's begin with the nicotine pouch category and our growing on! portfolio. Nicotine pouches continue to drive volume growth in the oral tobacco category, which we estimate increased 6% over the past 6 months. In the second quarter, the nicotine pouch category grew 8.1 share points and now represents nearly 60% of the total oral category. As the category continues to expand, Helix is building on its momentum and strengthening on!'s position. In the second quarter, on! reported shipment volume was 49.9 million cans, down 4.2% versus the prior year due to trade inventory movements. Year-to-date, on! reported shipment volume increased by 5.1%, reflecting the early impact of on! PLUS following its national expansion. In the second quarter, on! retail share reached 8.6%, up 0.8 share points sequentially and 0.3 share points year-over-year, driven by the introduction of on! PLUS. Early data suggests on! PLUS is resonating with both loyal on! and competitive nicotine pouch consumers, driving incremental volume and share contributions for the brand. We've also seen encouraging repeat purchase rates that suggest consumers value the differentiated experience of our NICOSILK soft pouch. These results reflect the strategic investments we've made to support the brand. Earlier this year, Helix launched a new retail trade program that secured premium visibility and incremental fixture space for on! PLUS and its growing product portfolio. Helix complemented its trade program with responsible marketing investments across retail, live events, paid social media and more. As a result, Helix delivered gains in both total and unaided brand awareness for on! in the first half of the year, maintaining its position as the second most recognized brand in the nicotine pouch category. These early indicators reflect a strong start for on! PLUS with nicotine pouch consumers. Competitive activity in the nicotine pouch space is intensifying with competitors bringing new products and flavors to market and Helix is prepared with a differentiated product experience and a growing product portfolio. Helix's momentum is supported by an improving regulatory backdrop. The FDA recently updated its enforcement priorities for certain e-vapor and nicotine pouch products. We view this as a positive step toward greater regulatory clarity and transparency. While the guidance does not replace the need for formal authorizations, it recognizes that products in advanced stages of FDA review should be treated differently from products that evade regulatory oversight entirely. For Helix, we believe this guidance provides regulatory clarity for future product launches and reinforces Helix's strong position as the on! PLUS authorizations received last year create the potential for a faster supplemental PMTA pathway for future line extensions. In the second quarter, Helix resumed shipments of on! PLUS 12-milligram in 3 flavors in Florida, North Carolina and Texas, with a national expansion planned for the third quarter. Helix also plans to introduce flavor extensions across 6, 9 and 12-milligram strengths, beginning with Blueberry Mint and Mango Pineapple in the fourth quarter. We believe these products will enhance the on! PLUS portfolio and help meet increasing consumer demand for higher strength options and more flavor variety. Helix is committed to strengthening its position in the attractive nicotine pouch space and driving long-term profitable growth in the category. In e-vapor, we continue to believe that the category holds the potential to advance tobacco harm reduction in the U.S. and that recent FDA actions help expand access to regulated options for adult consumers. We also continue to see encouraging signs that federal and state agencies are committed to stronger enforcement. During the quarter, this included continued federal seizures of illicit products totaling more than $250 million, a lawsuit by the Minnesota Attorney General against a leading illicit e-vapor manufacturer and actions by major commerce and payment platforms to restrict illicit e-vapor sales. For harm reduction to succeed, 2 things are necessary, a more efficient authorization process and consistent enforcement over time. Both are critical to establish a level-playing field among legal manufacturers with high-quality smoke-free products for adult nicotine consumers. We believe increased enforcement activity, including supply-related disruptions at the border is helping slow demand for illicit products. While illicit-flavored disposable products remain prevalent, signs of moderating growth continued in the second quarter, and we're beginning to see this reflected in the consumer data. At the end of June, we estimate there were approximately 20 million adult vapers essentially unchanged from a year ago. Over the same period, the estimated number of disposable e-vapor consumers declined modestly. Together, these trends suggest the category's illicit-driven growth trajectory is beginning to moderate from the growth seen in previous years. Before I turn it over to Heather, I'd like to briefly highlight how we're supporting the people, communities and brands that have been central to our success for generations. Our companies have strong American roots and long-standing relationships with farmers that span more than 200 years. Our nation celebrates its 250th anniversary. We're honoring that heritage by investing in American tobacco growers and their local communities, engaging our employees nationwide through service and civic participation and marking the milestone across our portfolio, including Copenhagen's year-long celebration of the farmers, veterans and tradespeople who help shape our country and PM USA's introduction of Marlboro Cowboy Cut, a classic Marlboro experience anchored in the brand's iconic American story. Collectively, these efforts honor the American roots that have shaped our businesses while reinforcing the foundation for our next chapter of growth. In summary, we've had a strong first half of 2026. Our expanding smoke-free portfolio, the strength of our traditional businesses, a regulatory environment that is increasingly focused on addressing illicit products and the passion of our talented employees support our confidence in the opportunities ahead. With that, I'm delighted to turn the call over to Heather Newman, our new CFO, to provide details on our business and financial results. Heather Newman: Thanks, Sal, and good morning, everyone. Altria delivered strong second quarter and first half financial performance. Adjusted diluted earnings per share increased by 2.8% to $1.48 in the second quarter and by 4.9% to $2.80 for the first half. Robust smokeable products adjusted OCI growth continued to be a key contributor to earnings. In the segment, adjusted OCI grew by 2.4% to $3 billion in the second quarter and by 4.2% to $5.7 billion in the first half. Adjusted OCI margins expanded to 64.8% in the second quarter and 64.9% in the first half. The decline in our smokeable volumes continued to moderate during the quarter. Reported domestic cigarette volumes declined 3.2% in the second quarter and 2.8% in the first half. When adjusted for trade inventory movements, domestic cigarette volumes in the second quarter and the first half declined by an estimated 4.5% and 4%, respectively. At the industry level, when adjusted for the same factor, we estimate that domestic cigarette volumes declined by 5% in both the second quarter and in the first half, marking the fourth consecutive quarter of moderated cigarette industry declines. This trend continues to primarily be driven by reduced cross-category movement between cigarettes and illicit-flavored disposable e-vapor products. Economic pressure on adult smokers continue to impact cigarette industry dynamics. In the Discount segment, persistent discretionary income pressures, especially among low-income consumers remain the primary driver of growth, [ this ] included elevated gas prices and the compounding effects of inflation exceeding overall wage growth. As a result, for both the second quarter, first half, discount retail share grew by 2.6 share points. This trade-down dynamic impacted Marlboro's overall retail share, which declined 1.5 share points versus the year ago period and 0.2 share points sequentially. However, Marlboro maintained its [ long-standing leadership ] profitable premium segment. In the second quarter, Marlboro's share of premium was 59.6%, unchanged versus the prior year and up 0.1 share points sequentially. Basic continues to support PM USA's portfolio strategy by providing a competitive offering in stores where discount brands are most relevant. During the quarter, retail share expanded by 0.3 share points sequentially and 2.3 share points year-over-year. Throughout the first half, PM USA applied the same RGM-driven precision that guided Basics repositioning from the start, expanding targeted promotional support to roughly 35,000 stores while refining investment levels based on marketplace learnings. This disciplined data-driven approach to Basics retail footprint and brand investments helped capture share that we believe otherwise would have been lost to competitive discount brands while limiting incremental impact to Marlboro. PM USA's total portfolio strategy continues to support both share performance and long-term profit growth. Total PM USA retail share expanded 0.1 of a share point sequentially and 0.3 share points versus a year ago. This balance between premium and discount reinforces long-term profitability while supporting overall share stability within PM USA. Reflecting this balance, smokable price realization for the quarter was 4.5%, driven by strong net pricing for Marlboro, partially offset by mix impact of basic volume growth. In cigars, reported shipment volume increased 5% in the second quarter as Middleton continued to significantly outperform in the large mass cigar industry. All other manufacturers continue to experience volume declines with the industry down 6.4% in the same period. Turning now to the Oral Tobacco Products segment. Second quarter results reflect the continued evolution of the category towards nicotine pouches. Segment performance was impacted by a difficult prior year comparison when 2025 volumes benefited from promotional timing and competitor supply disruptions. Additionally, financial results were impacted by strategic investments behind on! PLUS introductory trial offers as we expanded beyond the initial launch dates. As a result, adjusted OCI decreased by 8% in the second quarter and 4.2% in the first half. Adjusted OCI margins remained strong at 66.7% for the second quarter and 67% for the first half. Total segment reported shipment volume decreased 8.5% for the second quarter and 6% for the first half as growth in on! was more than offset by lower MST volumes. When adjusted for trade inventory movements, we estimate that second quarter and first half Oral Tobacco Products segment volumes declined by approximately 2% and 5.5%, respectively. Oral Tobacco Products segment retail share was 29% for the second quarter and for the first half. Retail share was stable sequentially, reflecting the growth of on! and resiliency of our MST brands. In the highly profitable Moist Smokeless Tobacco segment, Copenhagen continued to maintain its long-standing premium leadership. Turning to ABI's financial results. We recorded $158 million in adjusted equity earnings in the second quarter, up 21.5% versus the prior year. We continue to view our ABI stake as a financial investment, and our goal remains to maximize the long-term value of the investment for our shareholders. We remain committed to returning significant value to shareholders. During the first half of the year, we paid approximately $3.6 billion in dividends and repurchased 5.3 million shares for $335 million. At the end of the second quarter, we had $665 million remaining under our current share repurchase program, which expires at the end of the year. In addition, our balance sheet remains strong. Our debt-to-EBITDA ratio as of June 30 was 1.9x, in line with our target of approximately 2x. Finally, let's turn to our financial outlook. As we've discussed this morning, our business performed extremely well during the first half of the year. As a result, we are raising the lower end of our full year 2026 guidance. We now expect to deliver adjusted diluted EPS in a range of $5.61 to $5.72, representing a growth rate of 3.5% to 5.5% from a base of $5.42 in 2025. We are mindful of the challenged state of the nicotine consumers, and we will continue to closely monitor their purchasing behaviors. And while refunds of taxes and duties paid on imported cigarettes for the quarter were flat sequentially due to timing factors, we continue to expect export volume and related tax refunds to be higher in the second half of the year with a more balanced benefit across the third and fourth quarters. With that, we'll wrap up, and Sal and I will be happy to take your questions. While the calls are being compiled, I'll remind you that today's earnings release and our non-GAAP reconciliations are available on altria.com. We've also posted our usual quarterly metrics, which include pricing, inventory and other items. Operator, let's open the question-and-answer period. Operator: [Operator Instructions] The first question is from Matt Smith at Stifel. Matthew Smith: You raised the low end of the guidance range. But even with that, the low end is below the first half delivery. And I think initially, you anticipated a stronger phasing of growth in the second half. So how should we think about the second half now given some commentary around building benefits from the duty drawback? Are you stepping up investments? You talked about some launches behind on! PLUS and you have Cowboy Cut going into the market. So are you stepping up incremental investments? Or are there other considerations in the second half we should think about? Salvatore Mancuso: Yes. Thanks for the question, Matt. It's good to hear from you. Look, we were really pleased that we could narrow guidance for our investors coming out of the second quarter. Really pleased with the first half results, to your point. And yes, the timing played out somewhat differently than our -- what we thought at the very beginning of the year. As you go into the second half of the year, I think it's important to keep an eye on the financial health of the consumer. The consumer remains under pressure. Gas prices and inflation remain elevated, driven primarily by the uncertainty and the geopolitical climate that they are living in today. So -- and then I think you are right to point out. We talked about national expansion of the 12-milligram on! PLUS. We've talked about flavor, introduction of flavor extensions across the portfolio. And yes, that will require a level of investment. So again, we feel really good about being able to narrow guidance, and we look forward to the second half of the year. Matthew Smith: And as a follow-up, one of the investment areas is the continued expansion of Cowboy Cut. I know it's early days, but can you talk about your initial observations in terms of the product's market share trajectory and where the volume for Cowboy Cut is being sourced from and how you think that evolves over time? Salvatore Mancuso: Yes. We're excited about Cowboy Cut. We're really pleased with the early introduction of Cowboy Cut. Again, it serves 2 purposes. One, it does allow Marlboro to further celebrate the 250th anniversary of the country, and it really leverages Marlboro's American heritage. And at the same time, it engages with more value-sensitive Marlboro smokers and premium smokers who are seeking value at a time when the economic environment is difficult for those consumers. You should think of Cowboy Cut as one of the many tools in the suite of RGM tools that PM USA uses to engage with consumers. So again, really pleased with the early days of Cowboy Cut and really pleased that we're able to use the breadth of Marlboro's portfolio to engage with value-sensitive consumers and to use data analytics so that we can be more prescriptive in terms of how we apply those promotional rates across the country. Operator: The next question is from Bonnie Herzog at Goldman Sachs. Bonnie Herzog: I had a question on the double duty drawback. I guess I'm hoping for a little bit more color on why you didn't recognize more of a benefit in Q2. You did export more volume sequentially. So I guess I assume something happened with the import volume quantity. I'm asking because I just want to make sure there's, I don't know, no issue and you have good visibility on this really ramping in 2H versus 1H. And then despite the double duty drawback benefit not increasing sequentially in the quarter, your smokeable OCI growth was still up and up sequentially on a stacked basis, which is clearly positive. So could you touch on some of the drivers of that and maybe how sustainable you believe that is? Heather Newman: Bonnie, thanks for the question. For double duty drawback, you're absolutely right to point out export volumes increased Q1 to Q2. Really, what you're seeing is a timing factor. And so there are 2 components to that, why that's not truing up to the FET credit. One is the time in terms of when we apply for that credit. The other is just staging of products, some inventory movement, and that's why that's not perfectly lining up. We do expect in the second half of the year for export volume to increase, and we'll have a more balanced benefit across Q3 and Q4 for the FET credit. From a smokeable OCI standpoint, we really have 2 components, strong Marlboro price realization that happened in the quarter as well as the first half. And then Basic, from an overall strategy standpoint, it was incremental to total PM USA, and we saw a benefit in terms of volume and share performance. So we feel really good about that total portfolio approach for PM USA that really aligns with our strategy to maximize profitability over the long term. Bonnie Herzog: Okay. Maybe part of my second question will touch on this, but then I do have another question just on the consumer and your cig volumes. As you guys have highlighted, cig volume declines are moderating. So just maybe hoping for a little bit more color on what you think might be driving this and whether you expect this to continue? And then I'm also asking in the context of sort of something you just touched on, Heather, is Basic because as I think about the second half, you're going to have pretty tough comps for Basics. So just trying to understand if we should realistically assume your cig volumes will be worse in 2H versus 1H. And then maybe high level, just give us a sense of any changed consumer behavior and elasticities given maybe still elevated prices at the pump and tough macro. Salvatore Mancuso: Yes. Bonnie, there's a lot in that question. So let me -- hopefully, I answer all of them. If I don't, please follow up and if Heather has anything to add, of course. So as far as the -- let me start with the cigarette volumes and what you're seeing across the industry. And we break out what we're seeing in terms of industry volume decline. So the drivers, you have the secular decline and the price elasticity. And then the third bucket is this cross-category movement and macroeconomic conditions. You are exactly right that the macroeconomic conditions are unsettled. You have, again, as we talked about earlier, high levels and persistent inflation, higher elevated gas prices, but that is somewhat being offset by the moderation and it's actually more than offset by the moderation in cross-category movement. And that's really driven by the fact we believe there are 2 factors that are driving that. One is the elevated level of enforcement that we're seeing in the marketplace and some of the supply-chain disruption that is occurring related to the illicit disposable e-vapor products. And then these products have been available for a number of years and the consumers, many of them had moved already into these categories. So we think both are probably playing a role in the moderation of the decline rate that you're seeing. And we'll have to see -- we don't talk about future volume trends necessarily, but we'll have to see how innovation impacts cross-category movement going forward. In the first half, you were lapping a higher level of cigarette decline rates that you rightly pointed out. So that's a lot of the driver that you're seeing in the industry volume decline rate for this quarter. We're also very pleased with the fact that when you look at Marlboro's performance and the fact that it has really held steady in the highly profitable premium segment that's a credit not only to the strength of Marlboro and the loyalty rates it has within the brand, but the ability for PM USA to effectively use the RGM tool suite it has at its disposal. And then, yes, Basic has shown strong growth on a year-over-year basis, and we will start to lap that. But we -- again, our strategy in discount is to participate in discount and not necessarily accelerate the growth in the discount category you're seeing. And that growth in the category is really driven by consumers' decisions to trade-down during a difficult economic situation. Operator: The next question is from Pallav Mittal at Barclays. Pallav Mittal: Firstly, on cigarette volumes, and it's a 3-part question. So U.S. industry volumes, following up from the previous question, clearly better so far this year. Just wanted to check, are you seeing any impact from higher gas prices because even Q2 volumes were strong? Or is there a change in that correlation? And in terms of your shipments, your shipments are almost 120, 130 basis points better than the inventory adjusted number. So should we expect that to unwind in the second half? Salvatore Mancuso: Yes, and we are seeing change to the price elasticity seen for a period of time, that coefficient of negative 0.35% continues to hold steady. You do see, obviously, as I pointed out in Bonnie's question, the growth of the discount category in the cigarette space, and that's consumers making trade-down decisions. But premium remains the category or the segment where most of the profitability is in the cigarette category, it's about 85% of the profitability in the cigarette category. So PM USA remains focused on that. You are also correct to point out that PM USA volume outperformed, at least the volume trend outperformed the industry. And that's really the total portfolio approach that PM USA has employed. So you saw overall PM USA share grow on a year-over-year basis. So that's impacting the volume comparison versus the industry. Pallav Mittal: Sure. And then... Salvatore Mancuso: Anything? Go ahead. Pallav Mittal: If I can then ask on your Smokeless business, the on! business. Can you just talk about the consumer feedback on the on! PLUS product, the recent 12 mg launch and any retention rates since you have gone national in March? The reason I asked this question is because despite the national expansion, volumes haven't accelerated significantly. So just wanted to check if there is any inventory movement which is impacting the Q2 numbers? Or is there something more than that? Salvatore Mancuso: Yes. Let me start and then Heather, if you'd like to add anything. We're really pleased with the on! PLUS launch. It's in about 120,000 stores. So it covers about 90% of the nicotine product volume. AGDC has done a terrific job with the on! PLUS. We mentioned earlier that we launched a new retail program that provides on! and on! PLUS with premium visibility and about 90% of its volume. Share was up 0.8 share points sequentially. That is driven by the on! PLUS launch. The consumer likes the differentiated experience of the soft pouch technology. But we also recognize it's important to have higher strengths. So we're excited about the 12-milligram national launch in the third quarter. And then the flavor expansions. We understand that flavors are important to this category. And while the larger flavor portfolio is in Mint and Wintergreen, other flavors are important. So we're excited about our ability to launch that later in the year in the fourth quarter. You are right, when you talk about shipments, there were some comp issues related to the second quarter. So if you look at 2025, volume was up due to some promotional activity as a major competitor was having some supply-chain disruption, it was important for Helix to promote the on! product. And then you have some timing between first quarter and second quarter as on! PLUS national launch was being prepared. So really happy with the initial launch, excited about the feedback we're getting from consumers, but really excited about the pipeline of products to come related to on! PLUS. Operator: The next question is from Eric Serotta at Morgan Stanley. Eric Serotta: Hoping you could give some color into how you're thinking about portfolio mix between discount and premium in the second half and as we move forward, you've already talked a bit about or fielded some questions in terms of lapping some of the distribution expansion for Basic. At the same time, you have Cowboy Cut ramping, which at least from limited sample at retail seems to be kind of like a 40% discount to mainline, at least in the markets I've seen. So not asking for future pricing guidance, but just how are you thinking about that mix benefit or sort of that mix impact going forward? Heather Newman: Sure. I'm happy to answer. So overall, what we try to do from a strategy standpoint is to maximize the profitability over the long term. And we do that pretty consistently across the portfolio for PM USA. And I think the first half performance is a fantastic example of that. You are right that we have different aspects of the portfolio that we will leverage. Let's take Marlboro, for example, on Cowboy Cut. That really helps insulate brand. We know that consumers are still under pressure and to keep them within the Marlboro family, from time-to-time, we will leverage our RGM capabilities and provide value to those premium consumers who are under pressure. And that's exactly how we're going to utilize Marlboro Cowboy Cut. And then when you think about discount, our approach and Sal is spot on, we want to participate in discount without accelerating that growth. We've done this from time-to-time. So historically, this is in line with our strategy. Previously, we have had L&M where we supported discount consumers and now our current strategy is Basic. I will remind you, it's very targeted in terms of its support. We leverage RGM to clearly identify where there's consumers under pressure to have the least amount of impact to Marlboro. And so we're really proud of our capabilities there in terms of RGM, and we feel confident in our ability to manage that for the second half. Eric Serotta: Great. And then just a follow-up on a different topic. I know it's early days, but in terms of on! PLUS any insights as to what you're seeing in terms of consumer sourcing? How much of it is kind of incremental to the category? And of the part that's not incremental, where do you see it sourcing the most volumes from -- either from a segment and strength or a brand standpoint? Salvatore Mancuso: Yes. If you look at the on! PLUS share performance, it was up 0.8 share points sequentially, up 0.3 share points year-over-year. So we believe it's incremental to the overall on! portfolio. As I said earlier, it resonates both with on! consumers as well as competitive nicotine pouch consumers. And then it also is appealing to MST consumers as a large pouch with stronger nicotine strengths, if you will. So we feel really good about the product, but we recognize it's important to add more flavors to the portfolio. So that's why it was important to have the retail trade program in place ahead of the launch. And again, our AGDC colleagues did a tremendous job of selling that in and working with our retail partners. And it's also important to have a pipeline of products behind the current 3 flavors that we have in the market. So yes, and I have to tell you, we're agnostic that it may source some from on! classic if they stay within the on! family. And on! PLUS, we believe, is a differentiated product related to the NICOSILK soft pouch technology. And we believe over the long term, it will be a premium product because of its differentiation. Operator: And next question is from Faham Baig at UBS. Mirza Faham Baig: Are you able to hear me? Salvatore Mancuso: Yes. Mirza Faham Baig: Fantastic. A couple of questions from me as well. The first one, going back to combustibles. If my math is right, I think there's at least a couple of percentage points of deceleration in price/mix at a time when the Basics share expansion year-on-year is sort of no different compared to Q1. Could you just help me understand what maybe drove the incremental step down in price/mix, whether that's related to Marlboro pricing or the impact of Cowboy Cut? Any help there would be useful. And the second question is going back to the recent FDA policy you highlighted, it gives you an opportunity to innovate and launch future line extensions in nicotine pouches. I guess the other category, the policy targets is vapor. Could you maybe remind us what you already have submitted in the PMTA pipeline, what's in scientific review? And how you think about launches in that category to try and further switch consumption away from the illicit trade? Salvatore Mancuso: Yes. So there's a couple of questions in that question, as you pointed out. So let me start with price realization. What you've seen in terms of PM USA's price realization this quarter is actually the fact that you had strong Marlboro price realization, and that was somewhat offset by the mix related to Basic as Basic has grown volume and share. But we really look at overall profitability. So what you saw was strong smokeable profitability, both in terms of margin and overall OCI performance in the first half of the year. So again, that's the price realization. Some of it is just the math. So just to give you some point of reference, if you look at Marlboro retail price in the second quarter, it was up about 7% on a year-over-year basis. We do believe that the recent guidance from FDA is constructive. While it doesn't replace the importance of authorization, we do believe that it brings some clarity and transparency related to authorization, both in the nicotine pouch as well as the e-vapor category. If you remember, NJOY ACE was out of the market related to 4 patents that were filed in the ITC. We have modified those products. They no longer infringe on those patents, and Customs and Border Patrol agree with that perspective. So we have submitted a supplemental PMTA. Our plan is to re-enter the market at some point with NJOY ACE. But while there's been a stepped-up level of enforcement, the illicit products remain prevalent in that category. So as we enter the market, we're going to be disciplined and thoughtful about how we enter the market and exercise financial discipline. But we're also going to continue to innovate for the future and meet the evolving consumer preferences in the e-vapor category. As we lock those products, those designs up, we'll determine the best path forward for submitting for FDA authorization. If it's a supplemental PMTA, then the clock begins when it's accepted by the FDA. If it is a PMTA, the clock, if you will, that 6-month clock [Audio Gap] it enters scientific review. So definitely a level of clarity in terms of when products can enter the market and really a recognition by the FDA that products that ignore regulations are different than products that are legal and are going through the FDA process. And we think that is constructive. Operator: The next question is from Damian Neela at Deutsche Bank. Damian McNeela: First one is we've talked a lot about on! PLUS and the innovation that you're launching. But we're just wondering, is there anything that you're doing with the regular on! products to sort of support or strengthen that part of the market is the first question. And then obviously, we've just been chatting about the FDA, but I was just wondering -- and obviously, you talked in the presentation about the improved backdrop around vape. But specifically, can you provide any sort of insights in how you're thinking about a potential return to that category? Salvatore Mancuso: Yes, sure. So let me start with on!. We believe on! classic and on! PLUS both have a place in our portfolio, and they're both important. If you look at on! classic, it's a smaller pouch. It's more of a dry feel. Currently, it has lower nicotine strengths in the marketplace. So we will continue to innovate when it comes to on! classic. And we believe that on! PLUS plays an important role as well. It has currently higher nicotine strengths. It's a larger pouch and has more of a wet feel. And so they both resonate with consumers, and they both play an important role in our nicotine product portfolio. I talked a lot about e-vapor with Faham. I would say that [Audio Gap] can play an important role in long-term tobacco harm reduction here in the U.S. We intend to participate in that category. But we recognize it's important to have sustained enforcement against the illicit manufacturers who are ignoring and really avoiding the regulatory landscape. So it's important that enforcement occurs, but it's also important that the FDA continues to authorize products so that the adult nicotine consumer has choices to participate in that category and be able to use reduced-risk products. We have not announced the timing of when we plan to re-enter the category, but we do plan on re-entering that category. And when we have more to report, of course, we will. Operator: And the final question is from Priya Ohri-Gupta at Barclays. Unknown Analyst: This is [ Theresa ] on for Priya. So could you please walk us through your thoughts on the current market backdrop in terms of not only your 2026 maturity, but also your 2027 Euro bond and how you're approaching the refinancing? Heather Newman: Sure. First and foremost, we remain committed to delivering strong shareholder returns. Obviously, our primary vehicle to do that is by way of a dividend. Historically, after we have the dividend, we have about $1 billion excess in cash. And we look at capital-efficient ways to deploy that capital, one in which you're pointing to is our debt management. And we also look at other capital-efficient ways like share buyback. We also have opportunities to accelerate against our long-term adjacency vision as well as our smoke-free vision with any M&A opportunities. And we think that we're really well positioned to manage those debt maturities in '26 and '27. We have a very strong balance sheet to do so with high cash generation businesses, and we remain focused on really delivering that strong shareholder value. Operator: There appears to be no further questions at this time. I would like to turn the call back over to Mac Livingston for any closing remarks. Mac Livingston: Great. Thanks to everybody for joining us. If you have any follow-up calls, please feel free to reach out. Thanks, and have a great day. Operator: This concludes today's call. Thank you for your participation. You may now disconnect at any time. Before you buy stock in Altria Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Altria Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 3, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Altria (MO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a data-driven total portfolio approach in smokeable products, where Marlboro Cowboy Cut engaged premium smokers while Basic captured trade-down volume in the discount segment. The smokeable segment achieved adjusted OCI growth of 4.2% in the first half, supported by strong net pricing for Marlboro and moderated industry volume declines. Management attributes the slowing decline in cigarette industry volumes to reduced cross-category movement, likely due to increased federal enforcement against illicit flavored disposable e-vapor products. Helix expanded on! PLUS to 120,000 stores, achieving an 8.6% retail share and leveraging a new retail trade program to secure premium visibility and fixture space. The Oral Tobacco segment faced difficult prior-year comparisons due to 2025 promotional timing and competitor supply disruptions, alongside strategic investments in on! PLUS trial offers. Management views recent FDA enforcement updates as a positive step toward regulatory clarity, potentially enabling a faster supplemental PMTA pathway for future nicotine pouch line extensions. Full-year 2026 adjusted diluted EPS guidance was narrowed to a range of $5.61 to $5.72, reflecting confidence in the first-half performance and the planned second-half product pipeline. The second-half outlook assumes increased export volumes and related tax refunds, with benefits expected to be balanced across the third and fourth quarters. Helix plans a national expansion of on! PLUS 12-milligram strengths in the third quarter, followed by new flavor extensions like Blueberry Mint and Mango Pineapple in the fourth quarter. Management remains cautious regarding the financial health of the consumer, noting that persistent inflation and elevated gas prices continue to pressure discretionary income. Altria intends to re-enter the e-vapor category with a modified NJOY ACE that avoids patent infringement, though the timing remains dependent on sustained market enforcement against illicit products. The discount cigarette segment grew by 2.6 share points in the first half, reflecting persistent trade-down dynamics among low-income consumers due to inflation exceeding wage growth. Reported on! shipment volume decreased 4.2% in the second quarter, primarily attributed to trade inventory movements and the timing of the on! PLUS national launch. Federal seizures of illicit e-vapor products exceeded $250 million during the quarter, signaling a more aggressive enforcement environment that management believes is moderating illicit category growth. The ABI stake continues to be managed as a financial investment with the primary goal of maximizing long-term value for shareholders. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that narrowing the guidance range reflects strong first-half results while accounting for necessary investments in the national expansion of on! PLUS and flavor extensions. The outlook incorporates the 'unsettled' macroeconomic environment and the potential for continued consumer pressure from gas prices and inflation. Cowboy Cut is designed to engage value-sensitive premium smokers and leverages Marlboro's American heritage during the nation's 250th anniversary. It serves as a Revenue Growth Management (RGM) tool to retain consumers within the Marlboro family who might otherwise trade down to deep-discount brands. Management believes the FDA's recognition of products in advanced review stages provides a clearer path for legal manufacturers compared to those evading oversight. Altria is prepared to use supplemental PMTA pathways for future innovations, which may offer a faster 6-month review clock once accepted by the FDA. Strong Marlboro price realization was partially offset by the volume growth of Basic, but the total portfolio approach successfully grew overall PM USA share. Management emphasized that 85% of cigarette category profitability remains in the premium segment, justifying their focus on Marlboro's stability.

Interested in Altria Group, Inc.? Here are five stocks we like better. Altria raised its 2026 adjusted EPS guidance to $5.61–$5.72, after adjusted EPS rose 2.8% year over year to $1.48 in the second quarter. Results were supported by cigarette pricing, despite declining volumes and inflation-driven consumer pressure. Smokable-products profit increased 2.4% to $3 billion, while cigarette volumes fell as consumers shifted toward discount products. Marlboro’s retail share declined, but discount brand Basic gained share. Nicotine pouches remained a key growth area: on! PLUS expanded to 120,000 stores, and on! retail share rose to 8.6%. Altria also plans a broader national rollout, new flavors and a disciplined reentry into e-vapor with NJOY ACE. Moog Is More Than a Missile Maker, and Wall Street Is Noticing Altria Group (NYSE:MO) reported higher adjusted earnings for the second quarter and first half of 2026, supported by pricing in its smokable-products business, growth in its nicotine pouch portfolio and continued shareholder returns. The company raised the lower end of its full-year adjusted earnings guidance while citing ongoing pressure on nicotine consumers from inflation and elevated gas prices. Adjusted diluted earnings per share rose 2.8% year over year to $1.48 in the second quarter and increased 4.9% to $2.80 for the first six months of 2026, Chief Financial Officer Heather Newman said during the company’s earnings call. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 5 Stocks Quietly Trading Near All-Time Highs While Everyone Watches the AI Drama Altria now expects 2026 adjusted diluted EPS of $5.61 to $5.72, compared with prior guidance that had a lower starting point. The updated range represents growth of 3.5% to 5.5% from adjusted EPS of $5.42 in 2025. Adjusted operating companies income in Altria’s smokable-products segment increased 2.4% to $3 billion in the second quarter and rose 4.2% to $5.7 billion in the first half. Adjusted OCI margins reached 64.8% for the quarter and 64.9% for the first half. → Microsoft Just Flipped the AI Spending Narrative Overnight This Dividend ETF Choice Could Shape Your Income Strategy Through 2026 Reported domestic cigarette volumes declined 3.2% in the second quarter and 2.8% in the first half. Adjusting for trade inventory movements, Altria estimated its domestic cigarette volumes fell 4.5% in the quarter and 4% in the first half. The company estimated that industry cigarette volumes, adjusted for the same factor, declined 5% in both periods. Newman said the industry’s moderated volume declines marked the fourth consecutive quarter of improvement, primarily reflecting reduced movement from cigarettes into illicit flavored disposable e-vapor products. → Carrier Earnings Could Send the Stock to a New All-Time High However, economic pressure continued to drive consumers toward discount cigarette products. Discount retail share increased 2.6 percentage points in both the second quarter and first half, according to the company. Marlboro’s retail share declined 1.5 percentage points from a year earlier, though its premium-segment share held at 59.6% and increased one-tenth of a point sequentially. Basic, Altria’s discount offering, gained 2.3 share points year over year and three-tenths of a point sequentially. CEO Sal Mancuso said the company is using targeted revenue-growth-management tools to participate in the discount segment without seeking to accelerate the segment’s growth. Smokable price realization was 4.5% in the quarter, reflecting strong Marlboro pricing that was partly offset by the mix effect of higher Basic volumes. Mancuso said Marlboro’s retail price was up about 7% year over year in the second quarter. In oral tobacco, Altria said nicotine pouches continued to drive category growth. The company estimated that oral tobacco-category volume increased 6% over the past six months, while nicotine pouches represented nearly 60% of the total oral category after gaining 8.1 share points during the second quarter. Helix, Altria’s nicotine pouch business, expanded on! PLUS to 120,000 stores nationwide. on! retail share reached 8.6% in the second quarter, up 0.8 percentage points sequentially and 0.3 percentage points from a year earlier. The company attributed the gain to the on! PLUS introduction and said early data indicated repeat purchases and interest from both existing on! users and consumers of competing pouch brands. Reported on! shipment volume was 49.9 million cans in the second quarter, down 4.2% from the prior year because of trade inventory movements. Year-to-date reported shipment volume rose 5.1%. Altria resumed shipments of on! PLUS 12-milligram products in three flavors in Florida, North Carolina and Texas during the second quarter, with a national expansion planned for the third quarter. It also plans to introduce Blueberry Mint and Mango Pineapple flavor extensions across 6-, 9- and 12-milligram strengths beginning in the fourth quarter. Oral tobacco segment adjusted OCI declined 8% in the second quarter and 4.2% in the first half, reflecting a difficult comparison with 2025 promotional activity, competitor supply disruptions and investments behind on! PLUS trial offers. Segment adjusted OCI margins were 66.7% in the quarter and 67% in the first half. Mancuso said recent Food and Drug Administration enforcement-priority guidance for certain e-vapor and nicotine pouch products provided greater clarity for products in advanced stages of FDA review, though it does not replace formal authorizations. The company said enforcement actions and supply disruptions affecting illicit e-vapor products may be slowing category growth. Altria estimated there were approximately 20 million adult vapers at the end of June, essentially unchanged from a year earlier, while the estimated number of disposable e-vapor consumers declined modestly. Altria plans to reenter the e-vapor category with NJOY ACE after modifying products that were removed from the market following patent-related actions. Mancuso said the company has submitted a supplemental premarket tobacco product application and will be disciplined about its market reentry, though he did not provide timing. During the first half, Altria paid approximately $3.6 billion in dividends and repurchased 5.3 million shares for $335 million. The company had $665 million remaining under its current share-repurchase program at the end of the second quarter; the program expires at year-end. Altria’s debt-to-EBITDA ratio was 1.9 times as of June 30, in line with its target of about two times. The company also recorded $158 million in adjusted equity earnings from its stake in Anheuser-Busch InBev during the quarter, up 21.5% from the prior year. Altria Group, Inc (NYSE: MO) is a U.S.-based consumer goods company whose principal business is the manufacture and sale of tobacco products. Headquartered in Richmond, Virginia, the company's operations are focused primarily on the U.S. market and include the production, marketing and distribution of cigarettes, smokeless tobacco and cigars. Its flagship cigarette franchise in the United States is sold through its operating subsidiaries and is among the most recognizable cigarette brands in the country. Altria's principal operating businesses include Philip Morris USA (cigarettes), U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Altria Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Both readings are true at once, and the gap between them is the real question for anyone weighing the shares. Altria (MO) trades around $67.90, roughly 9% below its 52-week high of $74.92, after returning 22% over the trailing twelve months. Over the trailing three months it returned 1.1% against 4.2% for the S&P 500. On earnings it sits well below the market, at 14.2 times earnings against 24.4 for the S&P 500. On sales the order flips: 5.5 times revenue against 3.4 for the index. How Can One Stock Be Below The Market On Earnings And Above It On Sales? Because far less is lost between the top line and the bottom than at the average company. Operating margin runs at 60% against 18.4% for the S&P 500, and net margin of 39% against 12.9% for the index leaves roughly $8.0 billion. The business converts about 46% of revenue into operating cash flow versus 22% for the market. The two multiples are one fact seen twice: at a 39% net margin, 14.2 times earnings is 5.5 times sales. What Is Growing Behind That Margin? Not much, on the top line. Revenue has shrunk at a 0.4% average annual rate over the last three years, against 5.9% growth for the S&P 500. Revenue of $20.4 billion over the trailing twelve months is barely changed from a year earlier, and in the second quarter of 2026 it grew 1.2% to $5.4 billion. Profitability sits far above the market, on a top line that does not grow. The Cigarette Business Is Doing The Heavy Lifting In the second quarter of 2026 adjusted diluted earnings per share rose 2.8% to $1.48. Smokeable products carried it: adjusted operating companies income grew 2.4% to $3 billion at a 65% margin, as price realization of 4.5% ran against inventory-adjusted domestic cigarette volumes that fell 4.5%. The company estimates industry cigarette volumes fell 5%, a fourth straight quarter of moderating declines, and management has narrowed full-year 2026 guidance to adjusted EPS of $5.61 to $5.72, lifting the low end. Marlboro's overall retail share fell 1.5 share points from a year earlier as discount retail share grew 2.6 share points, while Marlboro held 60% of the premium segment. By management's own account the consumer remains under pressure from inflation and elevated gas prices. What The Nicotine Pouch Push Costs Right Now Oral tobacco is where the transition is being paid for. Adjusted operating companies income there fell 8% in the second quarter of 2026, and reported on! shipment volume was 49.9 million cans, down 4.2% from a year earlier, while on! PLUS has reached 120,000 stores. The company puts that segment profit decline down to on! PLUS trial investment and a difficult prior year comparison, and the volume decline to trade inventory movements. Reported profit fell in the quarter, with lower nicotine pouch sales offsetting some of the cigarette growth. The counterweight is share: on! retail share reached 8.6%, up 0.8 share points sequentially, with flavor extensions due in the fourth quarter of 2026. What Has To Hold For The Cash To Keep Coming None of this resolves into a verdict. The margin is the entire case for the multiple, so watch whether smokeable adjusted operating companies income margin holds near 65% while price realization keeps pace with volume decline. The other half is whether the oral segment's 8% profit decline is the price of a launch or the shape of the business. And the payout rests on that cash: about $3.6 billion of dividends in the first half of 2026, with debt at 1.9 times EBITDA. Our five-factor stock scorecard scores those pieces against one another. Owning One Tobacco Franchise Is Still Owning One Category A business that turns close to half its revenue into cash is a rare thing, and it is still one business in one category, facing one stretched consumer and one long secular decline. Concentration is the risk that never shows up in a multiple. That is the case for a system rather than a single name: the Trefis High Quality portfolio is a rules-based group of stocks, rebalanced on evidence rather than conviction. It has a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

Altria Group, Inc. MO used its second-quarter earnings call to highlight progress in smoke-free products, disciplined tobacco portfolio management and shareholder returns. Management narrowed its 2026 earnings outlook after strong first-half execution. Executives focused on on! PLUS expansion, cigarette portfolio strategy and regulatory developments affecting nicotine categories. Analyst questions centered on consumer pressure, volume trends and the timing of second-half benefits. CEO Salvatore Mancuso said that Helix expanded on! PLUS availability to 120,000 stores nationwide and continued trial-generating activities. The company plans additional product extensions across nicotine strengths and flavors later in 2026. Mancuso also said that nicotine pouches remain a key growth area, with the category representing nearly 60% of the oral tobacco category. He noted that on! retail share reached 8.6% in the second quarter. Management also highlighted FDA actions affecting nicotine products. Mancuso said that increased regulatory clarity and enforcement against illicit products could support legal smoke-free alternatives. Altria emphasized its total portfolio approach in smokeable products, using premium and discount brands to manage changing consumer behavior. Marlboro maintained its premium leadership while Basic gained traction among value-focused consumers. The company reported smokeable products adjusted operating companies income increased 2.4% in the second quarter, supported by pricing and tax refund benefits. Adjusted OCI margin expanded to 64.8%. Management said domestic cigarette volume declines moderated, with industry declines estimated at 5% after adjusting for trade inventory movements. Executives attributed the trend partly to reduced movement into illicit disposable e-vapor products. During Q&A, a Stifel analyst asked about second-half expectations after Altria raised the lower end of guidance. Mancuso said that consumer financial pressure remains an important factor, including elevated inflation and gas prices. Mancuso also addressed Cowboy Cut, saying the product provides another tool for engaging value-sensitive Marlboro smokers while supporting the broader revenue growth management strategy. A Goldman Sachs analyst questioned cigarette volume trends and pricing dynamics. Management said that discount growth reflected consumer trade-down behavior, while premium remained the most profitable segment. Altria raised the lower end of its 2026 adjusted diluted EPS guidance range and now expects $5.61-$5.72, representing growth of 3.5-5.5% from the 2025 base. Second-quarter adjusted EPS was $1.48, up 2.8% year over year, while revenues net of excise taxes increased 1.2% to $5.356 billion. The company’s adjusted EPS and revenues missed the Zacks Consensus Estimate of $1.5 and $5.362 billion, respectively. Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. Quote CFO Heather Newman said that first-half performance reflected strong smokeable products execution and disciplined financial management. Altria returned nearly $3.9 billion to shareholders through dividends and share repurchases. MO continued shareholder returns during the quarter, including $1.8 billion in dividend payments and $55 million in share repurchases. The company had $665 million remaining under its current buyback authorization at quarter-end. Management said that its balance sheet remained strong, with debt-to-EBITDA of 1.9X as of June 30. Executives reiterated their focus on maintaining shareholder value through capital returns. Altria also discussed investment priorities, including increased capital expenditures tied to consolidating manufacturing operations. The company expects 2026 capital expenditures of $375-$450 million. The company’s leadership emphasized continued investment in smoke-free products while protecting profitability in traditional tobacco businesses. Management pointed to on! PLUS expansion and brand execution as key priorities. Mancuso said competitive activity in nicotine pouches is increasing, but Helix is positioned with product differentiation and a broader portfolio. The company expects additional launches later in the year. The quarter showed management balancing growth investments with near-term consumer challenges. Altria’s outlook reflects confidence in execution while recognizing pressure across nicotine categories. MO carries Zacks Rank #2 (Buy) at present. The Zacks Rank is driven by earnings estimate revisions and is designed to help identify stocks with stronger potential performance over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock has a Value Score of C, a Growth Score of D, a Momentum Score of B and a VGM Score of D. The Zacks Style Score uses grades from A to F to measure value, growth, momentum and combined characteristics, with higher scores indicating stronger attributes. The Zacks Rank and Style Score can change as analysts update earnings estimates and market conditions evolve following the latest results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Altria Group, Inc. (MO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research