Altria Group, Inc.

Good day and welcome to the Altria Group 2026 Second Quarter Earnings Conference Call. Today's call is scheduled to last about one hour, including remarks by Altria's management and a question and answer session. Representatives of the investment community and media on the call will be able to ask questions following the conclusion of the prepared remarks. I would now like to turn the call over to Mac Livingston, Vice President of Investor Relations. Please go ahead, sir.

Thanks, Olivia. Good morning, and thank you for joining us. This morning, Sal Mancuso, Altria's CEO, and Heather Newman, our CFO, will discuss Altria's 2026 second quarter business results. Earlier today, we issued a press release providing our results. The release, presentation, and quarterly metrics are all available at altria.com. During our call today, unless otherwise stated, we're comparing results to the same period in 2025. Our remarks contain forward-looking statements, including projections of future results. Please review the forward-looking and cautionary statement section at the end of today's earnings release for various factors that could cause actual results to differ materially from projections. Future dividend payments and share repurchases remain subject to the discretion of our Board of Directors. We report our financial results in accordance with U.S. generally accepted accounting principles. will contain various operating results on both a reported and adjusted basis. Adjusted results exclude special items that affect comparisons with reported results. Descriptions of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures are included in today's earnings release and on our website at altria.com. Finally, all references in today's remarks to nicotine consumers or consumers within a specific nicotine category or segment refer to existing adult nicotine consumers 21 years of age or older. With that, I'll turn the call over to Sal.

Thanks, Mac. Good morning, and thank you for joining us. In the second quarter, our operating companies continue to deliver against the priorities we outlined at the start of the year. advancing our smoke-free portfolio, strengthening our traditional tobacco businesses, and delivering significant returns to shareholders. In smoke-free, Healis expanded OnPlus to 120,000 stores nationwide, engaged in trial-generating activities, and prepared for additional line extensions to come later this year. In smokable products, PMUSA advanced its data-driven total portfolio approach to drive profitability as Marlboro Cowboy Cut generated strong interest among premium smokers and Basic continued to gain traction in discount. We delivered strong first half results, driving adjusted diluted EPS growth of 4.9%, and returned nearly $3.9 billion to shareholders through dividends and share repurchases combined. This performance reflects steady, disciplined execution and confidence in our full year plan, which allowed us to narrow our earnings guidance for the year. This morning, I'll cover second quarter and first half results from on recent FDA actions and eVapor category dynamics, and how our operating companies celebrated America's 250th anniversary. I'll then turn it over to Heather, who will provide further detail on our business results and financial outlook. Let's begin with the nicotine pouch category in our growing on portfolio. Nicotine pouches continue to drive volume growth in the oral tobacco category, which we estimate increased 6% over the past six months. In the second quarter, the nicotine pouch category grew 8.1 share points and now represents nearly 60% of the total oral category. As the category continues to expand, Helix is building on its momentum and strengthening Onn's position. In the second quarter, Onn reported shipment volume was 49.9 million cans, down 4.2% versus the prior year due to trade inventory movements. Year to date, Onn reported shipment volume increased by 5.1%, reflecting the early impact of Onn Plus following its national expansion. In the second quarter, ON retail share reached 8.6% of 0.8 share points sequentially and 0.3 share points year-over-year, driven by the introduction of ON+. Early data suggests ON is resonating with both loyal ON and competitive nicotine pouch consumers, driving incremental volume and share contributions for the brand. We've also seen encouraging repeat purchase rates that suggest consumers value the differentiated experience of our Negro silk soft pouch. These results reflect the strategic investments we've made to support the brand. Earlier this year, Helix launched a new retail trade program that secured premium visibility and incremental fixture space for on us and its growing product portfolio. Helix complemented its trade program with responsible marketing investments across retail, live events, paid social media and more. As a result, Helix delivered gains in both total and unaided brand awareness for Ahn in the first half of the year, maintaining its position as the second most recognized brand in the nicotine pouch category. These early indicators reflect a strong start for OnPlus with nicotine pouch consumers. Competitivity in the nicotine pouch space is intensifying, with competitors bringing new products and flavors to market, and Helix is prepared with a differentiated product experience and a growing product portfolio. Killix's momentum is supported by an improving regulatory backdrop. The FDA recently updated its enforcement priorities for certain e-vapor and nicotine pouch products. We view this as a positive step toward greater regulatory clarity and transparency. While the guidance does not replace the need for formal authorizations, it recognizes the that products in advanced stages of FDA review should be treated differently from products that evade regulatory oversight entirely. For Helix, we believe this guidance provides regulatory clarity for future product launches and reinforces Helix's strong position. As the OnPlus authorizations received last year, create the potential for a faster supplemental PMTA pathway for future line extensions. In the second quarter, Helix resumes shipments of OnPlus 12 mg in three flavors in Florida, North Carolina, and Texas, with a national expansion planned for the third quarter. Helix also plans to introduce flavor extensions across six, nine, and 12 milligram strengths, beginning with blueberry mint and mango pineapple in the fourth quarter. We believe these products will enhance the On Plus portfolio and help meet increasing consumer demand for higher strength options and more flavor variety. Hewlett is committed to strengthening its position in the attractive nicotine pouch space and driving long-term profitable growth in the category. In eVapor, we continue to believe that the category holds the potential to advance tobacco harm reduction in the U.S. and that recent FDA actions help expand access to regulated options for adult consumers. We also continue to see encouraging signs that federal and state agencies are committed to stronger enforcement. During the quarter, this included continued federal seizures of illicit products totaling more than $250 million, a lawsuit by the Minnesota Attorney General against the leading illicit evaper manufacturer, and actions by major commerce and payment platforms to restrict illicit e-vapor sales. For harm reduction to succeed, two things are necessary. A more efficient authorization process and consistent enforcement over time. Both are critical to establish a level playing field among legal manufacturers with high-quality, smoke-free products for adult nicotine consumers. We believe increased enforcement activity, including supply-related disruptions at the border, is helping slow demand for illicit products. While illicit flavored disposable products remain prevalent, signs of moderating growth continued in the second quarter, and we're beginning to see this reflected in the consumer data. At the end of June, We estimate there were approximately 20 million adult vapors essentially unchanged from a year ago. Over the same period, the estimated number of disposable e-vapor consumers declined modestly. Together, these trends suggest the category's illicit-driven growth trajectory is beginning to moderate from the growth seen in previous years. Before I turn it over to Heather, I'd like to briefly highlight how we're supporting the people, communities, and brands that have been essential to our success for generations. Our companies have strong American roots and long-standing relationships with farmers that span more than 200 years. Our nation celebrates its 250th anniversary We're honoring that heritage by investing in American tobacco growers and their local communities, engaging our employees nationwide through service and civic participation, and marking the milestone across our portfolio, including Copenhagen's year-long celebration of the farmers, veterans, and tradespeople who helped shape our country. and PMUSA's introduction of Marlboro Cowboy Cut, a classic Marlboro experience anchored in the brand's iconic American story. Collectively, these efforts honor the American roots that have shaped our businesses while reinforcing the foundation for our next chapter of growth. In summary, we've had a strong first half of 2026. Our expanding smoke-free portfolio, the strength of our traditional businesses, a regulatory environment that is increasingly focused on addressing illicit products, and the passion of our talented employees support our confidence in the opportunities ahead. With that, I'm delighted to turn the call over to Heather Newman, our new CFO, to provide details on our business and financial results.