Philip Morris International delivered a strong 2025, exceeding its growth targets with robust performance in its smoke-free business, which now represents a significant portion of revenue and profit. The company is well-positioned to continue this growth trajectory, setting ambitious targets for 2026-2028.
Smoke-free business (SFB) full-year net revenues grew 15.0% (14.1% organically) and gross profit increased by 20.3% (18.7% organically).
positiveSFB accounted for 41.5% of total net revenues and nearly 43% of total gross profit, up significantly year-over-year.
positiveReported Diluted EPS of $7.26, a 60.6% increase year-over-year.
positiveAdjusted Diluted EPS of $7.54, representing 14.8% growth year-over-year (14.2% on a currency-neutral basis).
positiveHeated Tobacco Units (HTU) adjusted in-market sales (IMS) volume growth accelerated to 12% in Q4 and increased by an estimated 10.5% for the full-year.
positiveOral SFP shipment volume increased by 18.5% for the full-year, fueled by nicotine pouches.
positiveZYN nicotine pouches in the U.S. saw shipment volume increase over 19% in Q4 and offtake volume grow 23%.
positiveE-vapor SFP (VEEV) shipment volumes more than doubled on a full-year basis.
positiveCombustibles net revenues grew 2.5% organically for the full-year, driven by strong pricing.
positiveEurope segment net revenues increased by 5.1% on an organic basis in Q4.
positiveSSEA, CIS & MEA segment adjusted operating income increased by 25.3% organically in Q4.
positiveEast Asia, Australia & PMI Global Travel Retail segment adjusted operating income increased 11.7% organically for the full-year.
positiveAmericas segment net revenues increased 8.8% organically for the full-year.
positiveAmericas segment adjusted operating income decreased by 43.4% organically in Q4, primarily reflecting unfavorable price comparison to low levels of ZYN promotional activity in the prior year and higher marketing costs.
attentionAmericas segment adjusted operating income decreased by 1.4% organically for the full-year, primarily due to higher marketing, administration and research costs.
attentionCigarette shipment volume declined by 2.2% in Q4 and 1.5% for the full-year.
attentionOral SFP shipments in Europe decreased in Q4, primarily driven by lower snus volume due to inventory movements.
attentionEast Asia, Australia & PMI Global Travel Retail segment net revenues increased by only 1.0% organically in Q4.
attentionThe company forecasts a cigarette shipment volume decline of around 3% for 2026.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Europe | N/A | — | — | — | +5.1% |
SSEA, CIS & MEA | N/A | — | — | — | +6.4% |
EA, AU & PMI GTR | N/A | — | — | — | +4.6% |
Americas | N/A | — | — | — | +8.8% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
We achieved another remarkable year of results in 2025, with a fifth consecutive year of volume growth, net revenues surpassing $40 billion, including close to $17 billion from our smoke-free business, and very good operating margin expansion.
With excellent results in 2024 and 2025, we have delivered our three-year CAGR targets on operating income and EPS in just two years.
Our smoke-free products (SFP) are now available in 106 markets, with over 43 million estimated adult consumers.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.