What it does
The company states that it has a tobacco-product portfolio for U.S. tobacco consumers age 21+. Its operating companies manufacture and sell combustible cigarettes, machine-made large cigars, moist smokeless tobacco products, oral nicotine pouches and e-vapor products. Smokeable products include cigarettes made by PM USA and cigars sold by Middleton; oral tobacco includes products sold by USSTC and Helix; and e-vapor products are sold by NJOY. The filing also describes Horizon, a joint venture responsible for U.S. marketing and commercialization of heated tobacco stick products owned by either party.
Source: Altria Group, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The company reports three segments: smokeable products, oral tobacco products and e-vapor products. As shown in the segment table below, Smokeable Products generated $20.5 billion in FY2025 revenue and represented 88.0% of revenue. Oral Tobacco Products generated $2.8 billion and represented 12.0%. The filing identifies e-vapor as a reportable segment and places Horizon, Helix International and certain research-and-development activities in its all other category. Tobacco subsidiaries principally sell their products to wholesalers, including distributors, and large retail organizations.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Smokeable Products | $20.5 billion | 88.0% | −3.39% |
| Oral Tobacco Products | $2.8 billion | 12.0% | 0.94% |
| All Other | $5.0 million | 0.02% | — |
| E-Vapor | −$13.0 million | −0.06% | −132.5% |
Source: Altria Group, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
The company states that it operates primarily in the United States and generates substantially all of its revenue from domestic customers. PM USA sells substantially all cigarettes to U.S. customers, while Middleton sells substantially all cigars in the United States. The filing likewise says that substantially all oral tobacco products are manufactured and sold to U.S. customers, and NJOY sells e-vapor products to U.S. customers. Its tobacco subsidiaries principally sell through wholesalers and large retail organizations, including chain stores. The filing directs readers to its segment-reporting note for discussion of its largest customers.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Smokeable Products | $20.5 billion | 88.0% | −3.39% |
| Oral Tobacco Products | $2.8 billion | 12.0% | 0.94% |
| All Other | $5.0 million | 0.02% | — |
| E-Vapor | −$13.0 million | −0.06% | −132.5% |
Source: Altria Group, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The company describes the tobacco market as highly competitive. It states that competition centers on brand recognition and loyalty, product quality, taste, price, innovation, marketing, packaging, distribution and promotional activities. The filing also identifies competitive pressure from innovative nicotine products, including legal and illicit e-vapor products and oral nicotine pouches, as well as lower-priced brands, diverted products and counterfeit cigarettes. It does not name specific competitors in its competition discussion. The filing says price differences between premium and discount brands can significantly affect competitive positions.
Source: Altria Group, Inc. Form 10-K for fiscal 2025, Item 1 and Item 1A — sec.gov
Key risks
The filing lists risks including:
- Changes in adult nicotine consumer purchase behavior and preferences, including during difficult economic conditions.
- Significant competition, including the growth of innovative nicotine products.
- Unsuccessful commercialization of innovative products, including products with reduced health risks relative to certain other nicotine products.
- Inability to counter illicit trade in nicotine products, including e-vapor products.
- Significant changes in the price, availability or quality of tobacco, other raw materials or component parts.
- Reliance on a few significant facilities and a small number of key suppliers, distributors and distribution-chain service providers.
Source: Altria Group, Inc. Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
At December 31, 2025, the company employed approximately 5,900 people. The filing says its Human Resources department manages employment matters including recruiting, hiring, compensation and benefits, performance management, career management, succession planning and professional development. It also describes manufacturing and supply arrangements: PM USA and USSTC purchase certain leaf tobaccos from domestic growers under contract growing programs, while Middleton purchases leaf tobacco through merchants. Helix and NJOY purchase tobacco-derived nicotine materials from suppliers. The company states that its operating companies rely on a few significant facilities and a small number of key suppliers, distributors and distribution-chain service providers.
Source: Altria Group, Inc. Form 10-K for fiscal 2025, Item 1 and Item 1A — sec.gov