Altria Group, Inc. (MO) Stock Analysis

Altria Group sold 61.8 billion cigarette units through PM USA — the largest cigarette company in the United States — and 732.4 million units of oral tobacco products in 2025, employing approximately 5,900 people at December 31, 2025. The company generates substantially all revenue from domestic U.S. customers across three reportable segments: smokeable products, oral tobacco products, and e-vapor, with Marlboro holding the position of largest-selling U.S. cigarette brand for over 50 years. In 2025, ITC exclusion and cease-and-desist orders on NJOY ACE triggered goodwill and intangible asset impairments in the e-vapor reporting unit.

Altria's smokeable products segment, led by PM USA and Middleton (cigars), sells principally to wholesalers and large retail organizations throughout the United States. PM USA purchases the majority of its burley and flue-cured leaf tobaccos directly from domestic growers under a contract growing program, while Middleton purchases through leaf merchants. PM USA faces annual healthcare cost recovery litigation settlement payments that competing manufacturers not party to those settlements are not required to match, creating a structural pricing challenge against discount brands. The oral tobacco segment spans Copenhagen, Skoal, and Red Seal MST products alongside the on! nicotine pouch brand from Helix. NJOY — which contracts with third-party importers to supply all of its products — faces ITC exclusion orders on NJOY ACE pending appeal before the U.S. Court of Appeals for the Federal Circuit. Altria also holds a 75% stake in Horizon, a joint venture with Japan Tobacco for U.S. commercialization of heated tobacco stick products, pending FDA authorization.