Altria Group Smokes Out Success in Q2 2026
Altria Group, a leading provider of tobacco and smoke-free products, has reported a strong set of results for its second quarter of 2026. In a conference call with investors and analysts, Sal Mancuso, the company's CEO, highlighted the success of its operating companies in advancing its priorities, including advancing its smoke-free portfolio, strengthening its traditional tobacco businesses, and delivering significant returns to shareholders.
One of the key highlights from the quarter was the performance of Altria's smoke-free business, led by Helix. The company expanded its On! brand to 120,000 stores nationwide, engaged in trial-generating activities, and prepared for additional line extensions to come later this year. In particular, the nicotine pouch category continued to drive volume growth, with Altria estimating that it increased 6% over the past six months.
On! reported shipment volume of 49.9 million cans in the second quarter, down 4.2% versus the prior year due to trade inventory movements. However, year-to-date, On! reported shipment volume increased by 5.1%, reflecting the early impact of On+ following its national expansion. Furthermore, on! retail share reached 8.6%, up 0.8 share points sequentially and 0.3 share points year-over-year, driven by the introduction of On+. Early data suggests that On+ is resonating with both loyal on! and competitive nicotine pouch consumers, driving incremental volume and share contributions for the brand.
Sal Mancuso noted that Altria's strategic investments in support of the On! brand have been successful, citing the launch of a new retail trade program that secured premium visibility and incremental fixture space for On+ and its growing product portfolio. Additionally, Helix complemented its trade program with responsible marketing investments across retail, live events, paid social media, and more.
As a result of these efforts, Altria's smoke-free business delivered strong results in the second quarter, with on! gaining 8.1 share points in the nicotine pouch category and now representing nearly 60% of the total oral category. The company's CEO, Sal Mancuso, expressed confidence in the full year plan, which allowed Altria to narrow its earnings guidance for the year.
Heather Newman, Altria's CFO, provided further detail on the company's business results and financial outlook during the conference call. She noted that Altria delivered strong first-half results, driving adjusted diluted EPS growth of 4.9% and returning nearly $3.9 billion to shareholders through dividends and share repurchases combined.
The company also reported progress in its traditional tobacco businesses, with PM USA advancing its data-driven total portfolio approach to drive profitability as Marlboro Cowboy Cut generated strong interest among premium smokers and Basic continued to gain traction in discount.
