$PM

Altria Group (MO) and Philip Morris International (PM) have formed a contract manufacturing arrangement to improve operational efficiency for Altria's Philip Morris USA business. The agreement aims to generate benefits for future investments, while both companies will maintain independent operations. Altria reported a 2.4% increase in smokeable-products adjusted operating companies income to $3.02 billion in Q2 2026, with a 3.2% decline in domestic cigarette shipment volume.

Philip Morris International (PMI) will participate in the 2026 Barclays Global Consumer Conference on September 8, with CEO Jacek Olczak speaking in a live fireside chat. The session will be webcast live and archived for six months, offering insights into PMI's business outlook and strategic priorities.

Philip Morris International (PM) has successfully shifted focus from cigarettes to higher-margin smoke-free products, driving strong Q2 results. Revenue hit $11B, up 10.4%, with adjusted EPS at $2.20, up 15.2%. Smoke-free products now make up 42% of revenue, with management targeting over two-thirds by 2030. The stock has returned 137% over five years, but is not considered cheap.

Albuquerque sued Philip Morris, R.J. Reynolds, and others for cigarette butt pollution, seeking damages and cleanup costs. The city claims companies are liable for environmental harm and negligence. Similar lawsuits were filed by Denver and Sacramento County. Defendants have not commented, and a 1990s settlement agreement's immunity claim is pending in Baltimore's case.

Altria (MO) raised its quarterly dividend by 4.7% to $1.11/share, yielding ~6.4% at $68.37. The company has a strong free cash flow history but faces revenue decline and high debt. It guided for mid-single-digit dividend growth through 2028 and has a new contract manufacturing deal with Philip Morris International.

The City of Albuquerque sued eight tobacco companies, including Philip Morris International, for the costs of cleaning up cigarette butt litter. The city alleges the companies knowingly produce non-biodegradable filters, causing environmental and financial burdens.

Major tobacco companies are expanding their higher-strength nicotine pouch offerings in the $5.2B U.S. market. Philip Morris, BAT, and Altria are launching or expanding products with higher nicotine levels. U.S. pouch sales reached 21B last year, with smokeless nicotine products up 8% in 2026, while cigarette sales declined 2.4%.

Altria (MO) and Philip Morris (PM) are major tobacco companies shifting to smoke-free products. Altria focuses on the U.S. market with Marlboro leading, while PM has a global presence with a growing smoke-free portfolio. Altria's Q2 2026 cigarette market share was 45.5%, with smoke-free products expanding. PM's smoke-free products accounted for 42% of Q2 revenues, with IQOS, ZYN, and VEEV driving growth. Analysts expect PM's EPS to grow faster than MO's, with PM trading at a higher P/E ratio. Ov

The FDA authorized 11 new ZYN nicotine pouch products by Philip Morris International, citing lower harmful constituents. The agency considered risks and benefits, aiming to provide adult smokers with less harmful alternatives. The decision aligns with a shift towards tobacco harm reduction, with studies showing nicotine products' role in smoking cessation.

Altria (MO) and Philip Morris (PM) agreed to a manufacturing deal to improve efficiency and flexibility, with no material impact expected on 2026 results. Altria aims to boost exports and leverage tax benefits, while Philip Morris gains manufacturing access without entering the U.S. market. Both companies see strategic benefits, but near-term financial impact is limited.