MO · 10-Q · 2026Q2 · Full report
Operating Income and Margins
ALTRIA GROUP, INC. · 2026-07-30 · Importance 49 · Surprise 32 · No source text
Smokeable Products reported OCI increased $216 million, or 4.0%, to $5.615 billion for the six months ended June 30, 2026, while adjusted OCI increased $229 million, or 4.2%, to $5.694 billion. Six-month adjusted OCI benefited from higher pricing and $78 million of additional refunds of taxes and duties paid on imported cigarettes, partly offset by a $381 million volume/cigarette mix headwind and $110 million of higher costs. Reported OCI margin increased 0.3 percentage points to 64.0% for the six-month period, but declined 1.0 percentage point to 63.1% for the quarter. Quarterly reported OCI was also reduced by $63 million of higher tobacco, health and certain other litigation items and $44 million of higher costs.
Key facts
- Operating income increased $1,074 million (21.4%) for the six months ended June 30, 2026 versus the six months ended June 30, 2025 due primarily to higher OCI (which includes the impact of a non-cash impairment of the e-vapor reporting unit goodwill in 2025). source
- Reported net earnings of $4,481 million for the six months ended June 30, 2026 increased $1,026 million (29.7%) versus the six months ended June 30, 2025, due primarily to higher operating income. source
- Reported OCI for the oral tobacco products segment decreased $117 million (23.5%) for the three months ended June 30, 2026 compared with the three months ended June 30, 2025, driven primarily by 2026 costs related to USSTC Facilities Consolidation ($78 million) and lower shipment volume ($67 million). source
- Adjusted net earnings of $4,698 million for the six months ended June 30, 2026 increased $176 million (3.9%) versus the six months ended June 30, 2025 due primarily to higher OCI and higher income from Altria’s equity investment in ABI, partially offset by lower net periodic benefit income, excluding service cost. source
- For the three months ended June 30, 2026, operating income decreased $94 million (2.9%) versus the three months ended June 30, 2025 due primarily to lower OCI and higher general corporate expenses. source
- OCI (operating companies income) for smokeable products was $5,615 million for the six months ended June 30, 2026 and $5,399 million for the six months ended June 30, 2025. source
- Operating income was $6,092 million for the six months ended June 30, 2026 and $5,018 million for the six months ended June 30, 2025. source
- For the six months ended June 30, 2026, reported net earnings were $4,481 million and reported diluted EPS was $2.67; for the six months ended June 30, 2025, reported net earnings were $3,455 million and reported diluted EPS was $2.04. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +17.6% | Operating income increased $1,074 million (21.4%) for the six months ended June 30, 2026 versus the six months ended June 30, 2025 due… |
| net_income | positive | realized | +16.8% | Reported net earnings of $4,481 million for the six months ended June 30, 2026 increased $1,026 million (29.7%) versus the six months… |
| operating_income | positive | realized | +3.8% | Adjusted OCI for the six months ended June 30, 2026 was $5,694 million versus $5,465 million for the six months ended June 30, 2025. |
| operating_income | positive | realized | +3.5% | OCI (operating companies income) for smokeable products was $5,615 million for the six months ended June 30, 2026 and $5,399 million for… |
| net_income | positive | realized | +2.9% | Adjusted net earnings of $4,698 million for the six months ended June 30, 2026 increased $176 million (3.9%) versus the six months ended… |
| operating_income | negative | realized | -1.9% | Reported OCI for the oral tobacco products segment decreased $117 million (23.5%) for the three months ended June 30, 2026 compared with… |
| operating_income | negative | realized | -1.5% | For the three months ended June 30, 2026, operating income decreased $94 million (2.9%) versus the three months ended June 30, 2025 due… |
| net_income | negative | realized | -1.3% | For the three months ended June 30, 2026 reported net earnings were $2,298 million and reported diluted EPS was $1.37; for the three… |
| operating_income | positive | realized | +0.2% | Reported OCI for the three months ended June 30, 2026 was $2,942 million versus $2,930 million for the three months ended June 30, 2025. |