Altria Group Inc.

Strong 2Q & 1H performance; guidance raised at the lower end - 2Q adjusted diluted EPS: +$2.8% to $1.48 - 1H adjusted diluted EPS: +$4.9% to $2.80 - 1H shareholder returns: ~$3.9B via dividends + share repurchases - Full-year 2026 adjusted diluted EPS guidance raised (lower end): $5.61–$5.72 (vs $5.42 in 2025; +3.5% to +5.5% growth) - Management attributes confidence to “steady, disciplined execution,” strong smokeable profitability, and a regulatory environment increasingly focused on illicit products.

Smokeable business resilience, with volume declines moderating (but not yet reversing) - 2Q smokeable adjusted OCI: +$2.4% to ~$3.0B; margin: 64.8% (up) - Industry volumes: when adjusted for trade inventory, domestic cigarette volumes estimated -5% in 2Q and -5% in 1H, 4th consecutive quarter of moderated declines - Drivers of improvement: reduced cross-category movement away from cigarettes vs prior periods, helped by supply disruptions/enforcement in illicit flavored e-vapor; still ongoing price elasticity + secular decline and consumer pressure. - Negative/pressure point: consumer affordability remains challenged (inflation, high gas prices, wage lag), driving trade-down dynamics.

Pricing/mix trade-offs: Marlboro holds premium; discount grows share—impacting mix - PM USA profitability: smokable price realization +4.5% in the quarter (driven by net pricing for Marlboro, partially offset by Basic mix as Basic volumes/share rise). - Marlboro premium segment share: 59.6%, essentially flat YoY (steady loyalty). - Basic discount share: +2.3 pts YoY (and +0.3 pts sequentially)—a key reason management focuses on “participate in discount, don’t accelerate” volume growth that could pressure premium profitability.