We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Altria's Smoke-Free Push: Is It Finally Gaining Real Momentum?
Read MoreHide Full Article
Key Takeaways
MO reported continued progress in its smoke-free transition during Q3 2025 as combustible volumes declined.
MO's on! brand held 8.7% retail share, with shipment volumes up 14.8% to 133.6 million cans year to date.
MO introduced on! PLUS in select U.S. markets as a premium pouch aimed at expanding consumer choice.
Altria Group, Inc. (MO - Free Report) is signaling a notable shift in the business mix as it accelerates to push into smoke-free products to offset ongoing declines in combustible volumes. The third quarter of 2025 highlighted steady progress in this transition, particularly within oral nicotine and heated tobacco, two areas management continues to prioritize.
Oral nicotine remains a key driver of momentum. The on! nicotine pouch brand maintained a stable retail share of 8.7% during the quarter. Performance was stronger on a year-to-date basis, with on! shipment volumes rising 14.8% to 133.6 million cans over the first nine months of 2025. This consistency suggests that on! is holding its ground in a crowded category rather than relying solely on short-term promotions.
To build on this base, Altria recently introduced on! PLUS in select U.S. markets, namely Florida, North Carolina, and Texas. Positioned as a premium offering, the product is designed to appeal both to existing smokeless users and to adult consumers migrating from competing pouch brands. Management views this launch as an important step in broadening its oral nicotine portfolio and improving consumer choice.
Beyond oral nicotine, Altria reached a pivotal regulatory stage for heated tobacco. Horizon filed a combined premarket tobacco product application and modified risk tobacco product application with the FDA in August for the Ploom device and Marlboro heated tobacco sticks. This submission is a foundational step for introducing Ploom to American smokers. Overall, Altria’s recent updates suggest its smoke-free strategy is advancing through measured execution rather than rapid expansion.
How MO’s Smoke-Free Push Stacks Up Against Key Peers
Philip Morris International Inc. (PM - Free Report) continues to demonstrate scale-driven momentum in smoke-free products, led by IQOS and ZYN. In the third quarter of 2025, Philip Morris’ smoke-free shipment volumes rose 16.6%, with heated tobacco unit shipments up 15.5% and nicotine pouch volumes accelerating globally. Philip Morris’ Smoke-free products now account for 41% of total net revenues, reflecting continued progress across its smoke-free product portfolio.
Turning Point Brands, Inc. (TPB - Free Report) continues to build its smoke-free presence through oral nicotine, with modern oral products emerging as a key growth driver. In the third quarter of 2025, Turning Point Brands’ Modern Oral sales surged 627.6% year over year and accounted for 30.8% of total business. Overall, Turning Point Brands’ performance reflects strong traction in oral nicotine as an increasingly important component of its broader smoke-free strategy.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have gained 8.3% in the past month compared with the industry’s growth of 9.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.09X, down from the industry’s average of 15.3X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s current and next financial years’ earnings implies year-over-year growth of 6.3% and 2.3%, respectively.
Image: Bigstock
Altria's Smoke-Free Push: Is It Finally Gaining Real Momentum?
Key Takeaways
Altria Group, Inc. (MO - Free Report) is signaling a notable shift in the business mix as it accelerates to push into smoke-free products to offset ongoing declines in combustible volumes. The third quarter of 2025 highlighted steady progress in this transition, particularly within oral nicotine and heated tobacco, two areas management continues to prioritize.
Oral nicotine remains a key driver of momentum. The on! nicotine pouch brand maintained a stable retail share of 8.7% during the quarter. Performance was stronger on a year-to-date basis, with on! shipment volumes rising 14.8% to 133.6 million cans over the first nine months of 2025. This consistency suggests that on! is holding its ground in a crowded category rather than relying solely on short-term promotions.
To build on this base, Altria recently introduced on! PLUS in select U.S. markets, namely Florida, North Carolina, and Texas. Positioned as a premium offering, the product is designed to appeal both to existing smokeless users and to adult consumers migrating from competing pouch brands. Management views this launch as an important step in broadening its oral nicotine portfolio and improving consumer choice.
Beyond oral nicotine, Altria reached a pivotal regulatory stage for heated tobacco. Horizon filed a combined premarket tobacco product application and modified risk tobacco product application with the FDA in August for the Ploom device and Marlboro heated tobacco sticks. This submission is a foundational step for introducing Ploom to American smokers. Overall, Altria’s recent updates suggest its smoke-free strategy is advancing through measured execution rather than rapid expansion.
How MO’s Smoke-Free Push Stacks Up Against Key Peers
Philip Morris International Inc. (PM - Free Report) continues to demonstrate scale-driven momentum in smoke-free products, led by IQOS and ZYN. In the third quarter of 2025, Philip Morris’ smoke-free shipment volumes rose 16.6%, with heated tobacco unit shipments up 15.5% and nicotine pouch volumes accelerating globally. Philip Morris’ Smoke-free products now account for 41% of total net revenues, reflecting continued progress across its smoke-free product portfolio.
Turning Point Brands, Inc. (TPB - Free Report) continues to build its smoke-free presence through oral nicotine, with modern oral products emerging as a key growth driver. In the third quarter of 2025, Turning Point Brands’ Modern Oral sales surged 627.6% year over year and accounted for 30.8% of total business. Overall, Turning Point Brands’ performance reflects strong traction in oral nicotine as an increasingly important component of its broader smoke-free strategy.
Altria’s Price Performance, Valuation & Estimates
Shares of Altria have gained 8.3% in the past month compared with the industry’s growth of 9.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, MO trades at a forward price-to-earnings ratio of 11.09X, down from the industry’s average of 15.3X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MO’s current and next financial years’ earnings implies year-over-year growth of 6.3% and 2.3%, respectively.
Image Source: Zacks Investment Research
Altria currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.