Altria Group announced that its long‑time chief executive officer Billy Gifford will retire on May 14, 2026, after more than three decades with the company. The board elected Salvatore "Sal" Mancuso, the current chief financial officer, to become the next chief executive officer. Mancuso, who has held senior roles at Altria since 1990, will take over the company’s strategic direction and the ongoing transition to smoke‑free products under the company’s "Moving Beyond Smoking" vision.
Gifford will remain with Altria as a consultant through the end of 2026 to ensure a smooth transition. In addition, the board elected Heather Newman as the new chief financial officer, effective May 14, 2026. Newman joined Altria in 1999 and has served as chief strategy and growth officer since March 2022, bringing deep experience in capital allocation and growth initiatives.
Altria’s most recent quarterly results provide context for the leadership change. In Q2 2025 the company reported adjusted earnings per share of $1.44, beating the consensus estimate of $1.38 by $0.06 (a 4.3% beat). Revenue rose to $6.10 billion from $5.20 billion in the prior quarter, a 17.3% increase driven by strong demand for its oral nicotine pouch brand "on!" and a rebound in e‑vapor sales. In Q3 2025, however, adjusted EPS fell to $1.45, missing the consensus of $1.49 by $0.04, and revenue slipped to $5.251 billion from $5.468 billion, a 4% shortfall. The Q3 miss was largely attributable to a 1.3‑percentage‑point decline in adjusted operating‑cost‑of‑goods‑sold margins in the smokeable products segment, offsetting gains in the oral and e‑vapor segments.
Management guidance for the full year 2025 reflects a cautious but confident outlook. The board maintained adjusted EPS guidance of $5.37 to $5.45, a slight tightening from the prior range of $5.45 to $5.55, signaling concern about near‑term demand volatility while affirming the company’s ability to preserve profitability through cost discipline. Adjusted operating‑cost‑of‑goods‑sold margins in the smokeable products segment expanded to 64.5% in Q2 and 64.4% in Q3, indicating that pricing power and scale are offsetting some of the volume decline in cigarette shipments.
Gifford emphasized that the succession was the result of a long‑term, internal succession plan and that Sal Mancuso’s deep industry knowledge and operational experience would accelerate progress toward the 2028 enterprise goals. Mancuso said he was "humbled and honored" to be elected and pledged to build on the transformation Gifford began, while highlighting the importance of the new CFO, Heather Newman, in executing the company’s capital allocation strategy. The board chair, Kathryn McQuade, praised Mancuso’s commitment to the 2028 goals and noted that the selection process involved rigorous third‑party assessments of internal candidates.
The leadership transition comes at a time when Altria’s smoke‑free portfolio is gaining traction but the legacy cigarette business continues to face declining volumes and regulatory headwinds. Analysts noted that the Q3 earnings miss and revenue shortfall reflected the ongoing pressure on the smokeable segment, while the Q2 beat underscored the strength of the oral and e‑vapor businesses. The company’s focus on shareholder returns—through dividends and share repurchases—remains unchanged, and the new leadership is expected to maintain that policy while accelerating the shift to smoke‑free products.
Overall, the announcement signals a smooth transition of executive leadership while reinforcing Altria’s commitment to its "Moving Beyond Smoking" strategy. Investors will likely monitor how the new CEO and CFO execute the company’s growth plan, manage the balance between legacy and smoke‑free businesses, and navigate regulatory challenges in the coming years.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.