How MO (Altria Group) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a tobacco industry leader like MO Income Statement Overview makes money is essential for investors and anyone interested in the business of tobacco and nicotine products. In this post, we break down MO's quarterly income statement (Q3 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick MO Income Statement Overview

MO Income Statement Overview operates as a leading producer and marketer of smokeable and oral tobacco products, primarily serving the U.S. market. Revenue comes predominantly from the sale of cigarettes and other smokeable products, with a smaller but notable contribution from oral tobacco products. The company’s business is organized into segments including Smokeable Products, Oral Tobacco Products, and Other Revenue, reflecting its focus on nicotine delivery in various forms.

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Revenue Breakdown

• Total Revenue (Q3 2025): $5.25B (−1.7% YoY)
  • Smokeable Products Revenue: $5.39B (102.6% of total, −2.8% YoY)
  • Oral Tobacco Products Revenue: $0.69B (13.1% of total, −4.6% YoY)
  • Other Revenue by Product: −$0.83B (−15.7% of total, −10.1% YoY)
  • Wine Revenue: $0.0B (0% of total)
• Growth is powered by pricing strategies in core tobacco products, though overall volumes are declining due to industry trends.

Gross Profit and Margins

• Gross Profit: $3.81B (72.6% gross margin)
  • Cost of Revenue: $1.44B (−6.3% YoY)
  • MO maintains robust margins due to strong pricing power and a highly efficient, scaled manufacturing and distribution model.
• Most costs come from raw materials, manufacturing, and excise taxes associated with tobacco products.

Operating Income and Expenses

• Operating Income: $3.23B (+2.5% YoY, 61.5% margin)
• Operating Expenses: $0.58B (−11.3% YoY)
  • R&D: Not separately disclosed, likely minimal due to the mature nature of the tobacco business.
  • SG&A: Not separately disclosed,