Altria Group, Inc. Q1 FY2026 earnings call

Strong start to the year with adjusted diluted EPS up 7.3%. Highly cash generative businesses supported returns to shareholders. Smokable product segment income growth, marble in premium, PMUSA portfolio strategy. Orn and nicotine pouch performance, Helix's results and marketing efforts. eVapor category moderation due to enforcement and supply issues. Regulatory updates on ONPlus. Macroeconomic challenges affecting consumers, trade-down in cigarette segment. Investment in ABI, dividends and share repurchases.

Smokable Product Segment: Generated strong income growth. Marble strengthened position in premium segment. PMUSA executed total portfolio strategy. Reported domestic cigarette volumes declined by 2.4%, but Marlboro expanded share in premium segment. BASIC captured share in discount segment. Cigars shipment volume down slightly, but Middleton outperformed. Oral Tobacco Product Segment: Delivered over $400 million in total adjusted OCI in Q1. Adjusted OCI margins 67.4%. Total segment reported shipment volume decreased 3.1%. Helix expanded portfolio in nicotine pouch category. Oil Tobacco Product Segment: Orn performed well, Helix expanded Orn Plus nationwide. Nicotine pouch category grew 9.1 share points, now over 58% of total oral tobacco.

Reaffirmed 2026 full year adjusted diluted EPS range of $5.56 to $5.72, growth 2.5%-5.5% from 2025. Strong Q1 performance leads to more balanced growth between first half and second half. Considers moderated evapor industry growth and macroeconomic uncertainty.

Illicit flavored disposable products still prevalent, impacting eVapor category growth. Macro-economic challenges affecting consumer discretionary income, pressure on discount segment. Limited FDA authorized eVapor products constraining category progress. Regulatory uncertainties and enforcement effectiveness.

Includes questions from various analysts about performance, smokable OCI, full year guidance, double duty drawback, Marlboro's cowboy cut, nicotine pouches, macro impact, eVapor strategy, shelf space for OnPlus, nicotine pouch strategy, BASIC's interaction with Marlboro, vape enforcement in Virginia. Answers from Altria executives addressing these points.