Free cash flow generation is highly unstable, as demonstrated by the extreme volatility in the operating cash flow to net income ratio, which ranged from 0.09 in 2025Q2 to 2.93 in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 8.89B | 9.29B | 8.75B | 9.29B | 8.26B | 8.4B | 8.38B | 7.84B | 8.39B | 4.92B | 3.79B | 5.81B | 4.66B | 4.38B | 3.9B | 3.61B | 2.77B | 3.44B | 4.88B | 10.3B | 13.59B | 11.06B | 10.89B | 10.82B | 10.61B | 8.89B | 11.04B | 11.38B | 8.12B | 8.34B | 7.63B |
| Operating CF Margin % | - | 46.13% | 42.81% | 45.3% | 39.91% | 39.81% | 40.23% | 39.59% | 42.75% | 25.25% | 19.6% | 30.82% | 25.99% | 24.77% | 22.3% | 21.74% | 16.38% | 20.46% | 30.59% | 67.74% | 89.54% | 17.35% | 17.03% | 17.97% | 17.2% | 13.97% | 19.64% | 18.42% | 14.05% | 14.86% | 13.99% |
| Operating CF Growth % | 375.21% | 6.13% | -5.75% | 12.49% | -1.77% | 0.24% | 6.99% | -6.6% | 70.48% | 29.83% | -34.75% | 24.6% | 6.58% | 12.09% | 8.03% | 30.57% | -19.63% | -29.46% | -52.63% | -24.16% | 22.84% | 1.56% | 0.68% | 1.92% | 19.33% | -19.48% | -2.91% | 40.09% | -2.64% | 9.25% | 14.16% |
| Net Income | 8.05B | 6.93B | 11.26B | 8.13B | 5.76B | 2.48B | 4.45B | -1.3B | 6.97B | 10.23B | 14.24B | 5.24B | 5.07B | 4.54B | 4.18B | 3.39B | 3.91B | 3.21B | 3.09B | 3.13B | 3.18B | 10.44B | 9.42B | 9.2B | 11.1B | 8.56B | 8.51B | 7.67B | 5.37B | 6.31B | 6.3B |
| Depreciation & Amortization | 251M | 266M | 286M | 272M | 226M | 244M | 257M | 226M | 227M | 209M | 204M | 225M | 208M | 212M | 225M | 253M | 276M | 291M | 215M | 980M | 1.8B | 1.68B | 1.61B | 1.44B | 1.33B | 2.34B | 1.72B | 1.7B | 1.69B | 1.7B | 1.69B |
| Stock-Based Compensation | 0 | 0 | 0 | 58M | 50M | 40M | 35M | 32M | 46M | 55M | 44M | 51M | 46M | 49M | 46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -5M | -316M | -177M | 881M | -931M | -1.18B | -164M | -95M | -57M | -3.13B | 3.12B | -132M | -129M | -86M | -929M | -443M | 124M | 43M | -138M | -219M | -1.58B | -989M | 388M | 984M | 1.58B | 685M | 1.01B | 144M | 276M | 69M | 163M |
| Other Non-Cash Items | 1.75B | 2.16B | -2.77B | -7M | 3.69B | 6.86B | 3.59B | 9.06B | 179M | -555M | -13.47B | 249M | -292M | 272M | -788M | 319M | -1.23B | -120M | 2B | 7.43B | 11.86B | 132M | -489M | -928M | -2.56B | -1.63B | -701M | -68M | 657M | 149M | 149M |
| Working Capital Changes | -1.16B | 249M | 151M | -47M | -586M | 3M | 249M | -53M | 1.07B | -1.85B | -270M | 258M | -194M | -558M | 1.19B | 59M | -309M | 21M | -284M | -258M | -132M | -193M | -32M | 116M | -846M | -1.06B | 512M | 1.92B | 125M | 112M | -672M |
| Change in Receivables | -26M | -86M | -106M | 6M | -21M | -18M | 20M | -8M | 0 | 10M | -27M | 3M | -8M | 78M | 202M | -19M | 15M | -7M | -84M | 162M | 150M | 253M | -193M | 295M | -161M | -437M | 7M | 95M | -352M | -168M | 35M |
| Change in Inventory | -85M | -27M | 102M | -15M | 14M | 57M | 2M | 42M | -129M | -171M | -34M | -33M | -184M | -133M | 33M | 24M | 7M | 51M | 185M | -889M | -1.01B | -524M | -140M | 251M | 38M | -293M | 741M | -39M | -192M | -531M | -952M |
| Change in Payables | 146M | 34M | 116M | 38M | 92M | 163M | 53M | -79M | 27M | -55M | -6M | -7M | -5M | -76M | 5M | -60M | 48M | -25M | -162M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -407M | -341M | 2.17B | -1.28B | 782M | 1.21B | -143M | -2.4B | -12.99B | -467M | 3.71B | -15M | 177M | 602M | 920M | 387M | 259M | -9.76B | 479M | -5.25B | -618M | -4.88B | -1.42B | -2.43B | -2.47B | -2.92B | -17.51B | -2.68B | -2.55B | -619M | -2.06B |
| Capital Expenditures | -271M | -216M | -142M | -196M | -205M | -169M | -231M | -246M | -238M | -199M | -189M | -229M | -163M | -131M | -124M | -105M | -168M | -273M | -241M | -1.46B | -2.45B | -2.21B | -1.91B | -1.97B | -2.01B | -1.92B | -1.68B | -1.75B | -1.82B | -1.87B | -2.4B |
| CapEx % of Revenue | 1.24% | 1.07% | 0.69% | 0.96% | 0.99% | 0.8% | 1.11% | 1.24% | 1.21% | 1.02% | 0.98% | 1.21% | 0.91% | 0.74% | 0.71% | 0.63% | 0.99% | 1.62% | 1.51% | 9.58% | 16.17% | 3.46% | 2.99% | 3.28% | 3.26% | 3.02% | 2.99% | 2.83% | 3.15% | 3.34% | 4.4% |
| Acquisitions | 0 | 0 | 2.35B | -1.05B | 1B | 1.18B | 0 | -2.33B | -12.81B | -415M | 3.19B | 229M | -102M | 0 | 0 | 0 | 0 | -10.24B | 241M | -4.41B | 1.46B | -4.93B | -179M | -1.04B | -147M | -451M | -15.58B | -522M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 22M | -125M | -36M | -36M | -3.65B | 205M | 88M | 173M | -245M | 19M | -36M | -237M | -90M | 17M | -5M | 2M | 115M | -31M | 77M | 616M | 374M | 2.25B | 676M | 588M | -315M | -543M | -248M | -411M | -733M | 1.91B | 343M |
| Cash from Financing | -9.69B | -7.62B | -11.49B | -8.37B | -9.54B | -10.03B | -5.4B | -4.71B | 4.72B | -7.77B | -5.3B | -6.75B | -4.69B | -4.7B | -5.19B | -3.04B | -2.58B | 276M | -2.58B | -3.68B | -14.37B | -5.13B | -7.98B | -5.46B | -8.16B | -6.44B | 2.66B | -7.5B | -3.89B | -5.52B | -6.41B |
| Debt Issued (Net) | -1.68B | 385M | -1.12B | -568M | -1.1B | -1.07B | 993M | 2.32B | 11.94B | 0 | 1.04B | -1.79B | 174M | 620M | 187M | 1.49B | 232M | 2.96B | 2.59B | 2.05B | -6.46B | 1.4B | -2.04B | 640M | 2.76B | -6.77B | 10.94B | 231M | 25M | -962M | -534M |
| Equity Issued (Net) | -954M | -1B | -3.4B | -1B | -1.82B | -1.68B | 0 | -845M | -1.67B | -2.92B | -1.03B | -554M | -939M | -634M | -1.08B | -1.3B | 104M | 89M | -1.08B | 0 | 0 | -190M | 139M | -706M | -5.67B | 5.24B | -3.48B | -3.25B | 265M | -600M | -2.32B |
| Dividends Paid | -7.01B | -6.96B | -6.84B | -6.78B | -6.6B | -6.45B | -6.29B | -6.07B | -5.42B | -4.81B | -4.51B | -4.18B | -3.89B | -3.61B | -3.4B | -3.22B | -2.96B | -2.69B | -4.43B | -6.65B | -6.82B | -6.19B | -5.67B | -5.29B | -5.07B | -4.77B | -4.5B | -4.34B | -3.98B | -3.88B | -3.46B |
| Share Repurchases | -954M | -1B | -3.4B | -1B | -1.82B | -1.68B | 0 | -845M | -1.67B | -2.92B | -1.03B | -554M | -939M | -634M | -1.08B | -1.33B | 0 | 0 | -1.17B | 0 | -1.25B | -1.18B | -688M | -1.15B | -6.39B | -3.96B | -3.6B | -3.33B | 0 | -805M | -2.77B |
| Other Financing | -42M | -40M | -125M | -27M | -12M | -838M | -99M | -119M | -132M | -47M | -800M | -221M | -37M | -1.08B | -898M | -18M | 39M | -84M | 332M | 922M | -1.09B | -157M | -409M | -108M | -187M | -143M | -293M | -135M | -200M | -74M | -88M |
| Net Change in Cash | -1.2B | 1.35B | -563M | -370M | -503M | -412M | 2.85B | 727M | 119M | -3.32B | 2.2B | -952M | 146M | 275M | -370M | 956M | 443M | -6.04B | 3.07B | 1.72B | -1.24B | 514M | 1.97B | 3.21B | 112M | -484M | -4.16B | 1.02B | 1.8B | 2.04B | -898M |
| Free Cash Flow | 8.62B | 9.07B | 8.61B | 9.09B | 8.05B | 8.24B | 8.15B | 7.59B | 8.15B | 4.72B | 3.6B | 5.58B | 4.5B | 4.24B | 3.78B | 3.51B | 2.6B | 3.17B | 4.64B | 8.85B | 11.13B | 8.85B | 8.98B | 8.84B | 8.6B | 6.97B | 9.36B | 9.63B | 6.3B | 6.47B | 5.24B |
| FCF Margin % | 39.53% | 45.06% | 42.12% | 44.34% | 38.92% | 39.01% | 39.12% | 38.35% | 41.54% | 24.23% | 18.63% | 29.6% | 25.08% | 24.03% | 21.59% | 21.11% | 15.39% | 18.84% | 29.08% | 58.15% | 73.37% | 13.89% | 14.03% | 14.69% | 13.94% | 10.95% | 16.65% | 15.59% | 10.9% | 11.52% | 9.6% |
| FCF Growth % | 2.04% | 5.38% | -5.28% | 12.92% | -2.25% | 1.01% | 7.42% | -6.89% | 72.62% | 31.12% | -35.46% | 24.02% | 6.03% | 12.3% | 7.73% | 34.98% | -18.01% | -31.68% | -47.55% | -20.54% | 25.73% | -1.37% | 1.53% | 2.78% | 23.41% | -25.54% | -2.74% | 52.82% | -2.58% | 23.49% | 3.36% |
| FCF per Share | 5.15 | 5.41 | 5.01 | 5.12 | 4.46 | 4.46 | 4.39 | 4.06 | 4.32 | 2.46 | 1.85 | 2.84 | 2.27 | 2.11 | 1.86 | 1.70 | 1.25 | 1.53 | 2.22 | 4.18 | 5.29 | 4.24 | 4.35 | 4.34 | 4.04 | 3.15 | 4.10 | 4.00 | 2.58 | 2.65 | 2.13 |
| FCF Conversion (FCF/Net Income) | 1.07x | 1.34x | 0.78x | 1.14x | 1.43x | 3.40x | 1.88x | -6.06x | 1.21x | 0.48x | 0.27x | 1.11x | 0.92x | 0.96x | 0.93x | 1.07x | 0.71x | 1.07x | 0.99x | 1.05x | 1.13x | 1.39x | 1.16x | 1.18x | 0.96x | 1.04x | 1.30x | 1.48x | 1.51x | 1.32x | 1.21x |
| Interest Paid | 0 | 0 | 1.11B | 1.12B | 1.12B | 1.19B | 1.25B | 991M | 704M | 696M | 775M | 776M | 820M | 1.1B | 1.22B | 1.15B | 1.08B | 0 | 246M | 410M | 485M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 1.8B | 1.89B | 2.66B | 2.67B | 2.62B | 1.98B | 2.31B | 3.04B | 4.66B | 3.03B | 2.77B | 2.45B | 3.34B | 2.87B | 1.88B | 0 | 1.84B | 2.24B | 3.07B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory and illicit competition
As reported in recent financial statements, Altria's operating cash flow to net income ratio has exhibited extreme volatility, ranging from a low of 0.09 in 2025Q2 to a high of 2.93 in 2025Q4, indicating that reported earnings frequently decouple from actual cash generation capabilities.
The significant variance between net income and operating cash flow suggests that non-cash items and accounting adjustments, such as equity method earnings from the ABI stake, are heavily distorting the company's true cash-generating performance. Investors should monitor these discrepancies closely, as they imply that headline profitability may not be a reliable proxy for the liquidity available to fund the company's substantial dividend obligations.
Based on Altria's reported figures, free cash flow margins have fluctuated wildly, dropping to a negative 2.0% in 2024Q2 before recovering to 54.4% in 2025Q4, which highlights the inherent instability in the company's ability to convert revenue into sustainable, recurring free cash flow.
This erratic trajectory suggests that Altria's cash flow is highly sensitive to working capital swings and the timing of regulatory or litigation-related payments. The inability to maintain a consistent FCF margin trajectory warrants further investigation into whether the core business model is becoming increasingly capital-intensive or operationally unpredictable.
According to recent SEC filings, Altria experienced massive working capital outflows of $2.5 billion in 2024Q2 and $2.3 billion in 2025Q2, which directly offset operating cash flow and suggest that inventory management or wholesale channel stocking patterns are creating significant, temporary liquidity pressures.
These large, periodic working capital drains appear to be the primary driver of the company's inconsistent cash flow performance rather than fundamental operational failure. Analysts should interpret these swings as potential evidence of channel stuffing or inventory adjustments that mask the underlying health of consumer demand for combustible products.
As detailed in quarterly cash flow statements, Altria consistently utilizes nearly all of its free cash flow to fund dividends, with quarterly payments remaining steady at approximately $1.7 billion to $1.8 billion despite the significant volatility observed in the company's underlying operating cash flow generation.
The commitment to maintaining high dividend payouts appears to be a strategic priority, yet the reliance on volatile cash flows to fund these distributions may limit the company's flexibility for future growth investments. Investors should monitor whether this rigid capital allocation strategy remains viable if operating cash flow continues to exhibit such pronounced quarterly instability.
Quick answers to the most common questions about buying MO stock.
Altria Group, Inc. (MO) generated $9.29B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Altria Group, Inc. (MO) generated $9.07B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Altria Group, Inc. (MO) spent $216.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Altria Group, Inc. (MO) returned $6.96B to shareholders via cash dividends and spent $1.00B on share repurchases. This shows the company's commitment to returning capital to its equity investors.