MO · 10-Q · 2026Q3 · Full report
Operating Income and Margins
ALTRIA GROUP, INC. · 2026-10-29 · Importance 54 · Surprise 40 · In source text
For the nine months ended September 30, 2026, operating income increased 14.0% to $9,405 million from $8,248 million, primarily because OCI was higher and the prior-year comparison included an $873 million non-cash e-vapor goodwill impairment. Smokeable products OCI rose to $8,668 million from $8,341 million, while oral tobacco products OCI declined to $1,250 million from $1,390 million, a decrease of approximately 10.1%. For the third quarter, operating income increased 2.6% to $3,313 million from $3,230 million, primarily reflecting higher OCI.
Key facts
- Altria’s operating income increased $1,157 million, or 14.0%, for the nine months ended September 30, 2026, primarily due to higher OCI, including the impact of a 2025 non-cash e-vapor goodwill impairment. source
- For the nine months ended September 30, 2026, smokeable-segment reported OCI increased $327 million (3.9%), with higher pricing and $182 million of higher imported-cigarette tax and duty refunds partly offset by volume/cigarette mix, $150 million of higher manufacturing costs, and $41 million of higher litigation items. source
- For the nine months ended September 30, 2026, smokeable-segment adjusted OCI increased $345 million (4.1%), primarily due to higher pricing and higher refunds of taxes and duties on imported cigarettes. source
- Altria’s operating income increased $83 million, or 2.6%, for the three months ended September 30, 2026, primarily due to higher OCI. source
- For the three months ended September 30, 2026, smokeable-segment reported and adjusted OCI increased $111 million (3.8%) and $116 million (3.9%), respectively; higher pricing and $104 million of refunds were partly offset by $199 million from volume/cigarette mix and $80 million of higher costs. source
- Altria recorded $87 million and $9 million of pre-tax exit and implementation costs for the nine and three months ended September 30, 2026, respectively, for its plan to move USSTC manufacturing from Nashville, Tennessee, to a new facility to be constructed at its existing Hopkinsville, Kentucky campus. source
- Altria recorded $19 million and $3 million of pre-tax costs related to its Optimize & Accelerate initiative for the nine and three months ended September 30, 2026, respectively. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +18.9% | Altria’s operating income increased $1,157 million, or 14.0%, for the nine months ended September 30, 2026, primarily due to higher OCI,… |
| operating_income | positive | realized | +5.3% | For the nine months ended September 30, 2026, smokeable-segment reported OCI increased $327 million (3.9%), with higher pricing and $182… |