"PMI" refers to Philip Morris International Inc. and its subsidiaries. Trademarks and service marks that are the registered property of, or licensed by, the subsidiaries of PMI, are italicized.
Comparisons are made to the same prior-year period unless otherwise stated.
References to total industry (or total market), PMI shipment volume and PMI market share performance reflect cigarettes and heated tobacco units, unless otherwise stated.
As of the first quarter of 2022, total industry volume, PMI in-market sales volume and PMI market share for the following geographies include the cigarillo category in Japan: the total international market, EA, AU & PMI GTR Region, and Japanese domestic market.
References to total international market, defined as worldwide cigarette and heated tobacco unit volume excluding the U.S., total industry (or total market) and market shares are PMI estimates for tax-paid products based on data from a number of internal and external sources and may, in defined instances, exclude the People's Republic of China. Past reported periods may be updated to ensure comparability and to incorporate the most current information for industry and market share reporting.
"Combustible tobacco products" is the term PMI uses to refer to cigarettes and other tobacco products that are combusted.
In-market sales or "IMS" is defined as sales to the trade channels, which serve the end legal age nicotine users. Depending on the market and distribution model, IMS may represent an estimate. Consequently, past reported periods may be updated to ensure comparability and to incorporate the most current information.
From time to time, PMI's shipment volumes and IMS are subject to the impact of distributor inventory movements (or wholesaler inventory movements in certain markets where PMI does not sell to distributors), and estimated total industry/market volumes are subject to the impact of inventory movements in various trade channels that include estimated trade inventory movements of PMI's competitors arising from market-specific factors that significantly distort reported volume disclosures. Such factors may include changes to the manufacturing supply chain, shipment methods, consumer demand, timing of excise tax increases or other influences that may affect the timing of sales to customers. In such instances, in addition to reviewing PMI shipment volumes, IMS, certain estimated total industry/ market volumes and estimated market share on a reported basis, management reviews these measures on an adjusted basis that excludes the impact of distributor and/or estimated trade inventory movements. Management also believes that disclosing PMI's shipment volumes, IMS, estimated total industry/market volumes and estimated market share in such circumstances on a basis that excludes the impact of distributor and/or estimated trade inventory movements, improves the comparability of performance and trends for these measures over different reporting periods.
Consumer offtake or offtake is the term PMI uses to refer to an approximation of purchases by consumers based on various market specific sources (e.g., Nielsen).
"Total shipment volume" is defined as the combined total of cigarette, heated tobacco, oral smoke-free products (excluding snuff, snuff leaf and U.S. chew) and e-vapor shipment volume in equivalent units, unless otherwise stated.
"SSEA, CIS & MEA" stands for South & Southeast Asia, Commonwealth of Independent States, and Middle East & Africa.
"EA, AU & PMI GTR" stands for East Asia, Australia and PMI Global Travel Retail.
2025 volumes of nicotine pouches from U.S. based Global Travel Retail locations are recorded in Americas segment, financial impact is recorded in EA, AU & PMI GTR segment. No meaningful U.S. travel retail volumes in prior year.
Following the sale of Vectura Group Ltd. on December 31, 2024, we updated our segment reporting in January 2025 by including the ongoing Wellness & Healthcare segment results in the Europe segment. In addition, PMI renamed its "PMI Duty Free" business to "PMI Global Travel Retail" effective in the first quarter of 2025. As a result of this change, our segment that includes our duty free business was renamed East Asia, Australia & PMI Global Travel Retail ("EA, AU & PMI GTR"). As of the first quarter of 2025, PMI began reporting on this basis.
Following the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH) on March 22, 2019, PMI continues to report the volume and corresponding royalty revenues of brands sold by RBH for which other PMI subsidiaries are the trademark owner. These include Next, TEREA and VEEV. The volume and corresponding royalty revenues for these brands sold by RBH were not material to PMI for all periods presented.
Within the tables and schedules presented throughout this earnings release, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes.
Financial"Cost of sales" consists principally of: tobacco leaf, non-tobacco raw materials, labor and manufacturing costs; shipping and handling costs; and the cost of devices produced by third-party electronics manufacturing service providers. Estimated costs associated with device warranty programs are generally provided for in cost of sales in the period the related revenues are recognized.
"Marketing, administration and research costs" include the costs of marketing and selling our products, other costs generally not related to the manufacture of our products (including general corporate expenses), and costs incurred to develop new products. The most significant components of our marketing, administration and research costs are marketing and sales expenses and general and administrative expenses.
"Cost/Other" in the Consolidated Financial Summary table of total PMI and the four segments of this release reflects the currency and acquisition/divestiture-neutral variances of: cost of sales (excluding the volume/mix cost component); marketing, administration and research costs (including restructuring costs); and amortization and impairment of intangibles. "Cost/Other" also includes the currency and acquisition/divestiture-neutral net revenue variance, unrelated to volume/ mix and price components, attributable to: fees for certain distribution rights billed to customers in certain markets in the SSEA, CIS & MEA Region.
"Adjusted Operating Income Margin" is calculated as adjusted operating income, divided by net revenues.
"Adjusted EBITDA" is defined as earnings before interest, taxes, depreciation, amortization and equity (income)/loss in unconsolidated subsidiaries, excluding restructuring costs, impairment of intangibles, and unusual items.
"Net debt" is defined as total debt, less cash and cash equivalents.
Growth rates presented on an organic basis reflect adjusted results, excluding currency, acquisitions and divestitures.
Management reviews net revenues, gross profit, operating income, operating income margin, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, divestitures, restructuring costs, tax items and other special items. Additionally, starting in 2022 and on a comparative basis, for these measures other than net revenues and operating cash flow, PMI includes adjustments to add back amortization expense on acquisition related intangible assets that are recorded as part of purchase accounting and contribute to PMI's revenue generation, as well as impairment of intangible assets, if any. While amortization expense on acquisition related intangible assets is excluded in these adjusted measures, the net revenues generated from these acquired intangible assets are included in the company's adjusted measures, unless otherwise stated. Currency-neutral and organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures provide useful insight into underlying business trends and results. Management reviews these measures because they exclude changes in currency exchange rates and other factors that may distort underlying business trends, thereby improving the comparability of PMI's business performance between reporting periods. Furthermore, PMI uses several of these measures in its management compensation program to promote internal fairness and a disciplined assessment of performance against company targets. PMI discloses these measures to enable investors to view the business through the eyes of management.
When PMI provides its expectation for adjusted net revenues, adjusted operating income and margin, adjusted earnings per share and adjusted operating cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures, as described above, generally is not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as restructuring costs, amortization and impairment of acquired intangibles and other special items, changes in
currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
Non-GAAP measures used by PMI should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP. For a reconciliation of non-GAAP measures to the most directly comparable U.S. GAAP measures, see the "Select Financial Information and Reconciliations of Non-GAAP Financial Measures" section of this document.
U.S. GAAP Treatment of a country as a Highly Inflationary Economy: following the categorization of a country by the International Practices Task Force of the Center for Audit Quality as having a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with U.S. GAAP. For such countries, PMI accounts for the operations of its local affiliates as highly inflationary, and to treat the U.S. dollar as the functional currency of the affiliates. Such treatment was effective July 1, 2018, for Argentina, April 1, 2022, for Turkey, and October 1, 2024 for Egypt.
"Fair value adjustment for equity security investments" reflects the adjustment resulting from share price movements in passive investments for publicly traded entities that are not controlled or influenced by PMI. Under U.S. GAAP, such adjustments are required to be reflected directly in the income statement. Adjustments reflect share price movements in PMI's investments in India and Sri Lanka.
"Income tax impact associated with Swedish Match AB financing" reflects a deferred tax benefit (cost) for unrealized foreign currency losses (gains) on intercompany loans related to the Swedish Match acquisition financing reflected in PMI's consolidated statements of earnings. The underlying pre-tax foreign currency movements fully offset in the consolidated statements of earnings and were reflected as currency translation adjustments in PMI's consolidated statements of stockholders' (deficit) equity.
Egypt sales tax charge: In the third quarter of 2024, following a ruling issued by the Higher Administrative Court in Egypt and subsequent evaluation of available remedies, PMI concluded that an adverse outcome was probable and recorded a pre-tax charge of $45 million in relation to tax assessments for general sales tax deducted on imported cutfiller for the years 2014 to 2016.
Loss on Sale of Vectura Group: In September 2024, PMI announced the execution of a definitive agreement to sell Vectura to Molex Asia Holdings Ltd. On December 31, 2024, we completed the sale. As a result, PMI recorded a pre-tax loss in 2024 of $199 million, primarily related to an impairment charge of
$198 million recorded in the third quarter related to Vectura's classification as held for sale.
Smoke-FreeSmoke-free business ("SFB") is the term PMI uses to refer to all of its smoke-free products. SFB also includes wellness and healthcare products, as well as consumer accessories, such as lighters and matches.
Smoke-free products ("SFPs") is the term PMI uses to refer to all of its products that provide nicotine without combusting tobacco, such as heat-not-burn, e-Vapor, and oral smokeless, and that therefore generate far lower levels of harmful chemicals. As such, these products have the potential to present less risk of harm versus continued smoking.
Wellness and Healthcare products primarily refer to products associated with inhaled therapeutics and oral and intra-oral delivery systems.
"Heated tobacco units" or "HTU" is the term PMI uses to refer to heated tobacco consumables, which include our BLENDS, DELIA, HEETS, HEETS Creations (defined collectively as "HEETS"), SENTIA, TEREA, TEREA CRAFTED, and TEREA Dimensions, as well as the KT&G-licensed brands, Fiit and Miix (outside of South Korea). HTU's also include zero tobacco heat-not-burn consumables (LEVIA).
Unless otherwise stated, market share for HTUs is defined as the in-market sales volume for HTUs as a percentage of the total estimated industry sales volume for cigarettes and HTUs. For Japan, total estimated industry sales volume also includes cigarillos.
"Adjusted market share for HTUs" is defined as the total in-market sales volume for PMI HTUs as a percentage of the total estimated sales volume for cigarettes and HTUs, excluding the impact of estimated distributor and wholesaler inventory movements.
Unless otherwise stated, all references to IQOS are to PMI's IQOS devices and heated tobacco consumables.
IQOS heat-not-burn devices are precisely controlled heating devices into which a specially designed and proprietary tobacco units are inserted and heated to generate an aerosol.
"PMI heat-not-burn products" or "PMI HTUs" or "IQOS HTUs" include licensed KT&G heat-not-burn products.
"Total PMI SFPs users" is defined as the sum of "Total IQOS users", "Total oral smokeless users", "Total e-Vapor users" of PMI products and considering "Poly-users across PMI SFPs categories".
"Total IQOS users" is defined as the estimated number of Legal Age (minimum 18 years1) users of PMI heat-not-burn products, for which PMI HTUs represented at least a portion of their daily tobacco consumption over the past seven days.
The estimated number of adults who have "switched to IQOS and stopped smoking" reflects:
for markets where there are no heat-not-burn products other than PMI heat-not-burn products: daily individual consumption of PMI HTUs represents the totality of their daily tobacco consumption in the past seven days;
for markets where PMI heat-not-burn products are among other heat-not-burn products: daily individual consumption of HTUs represents the totality of their daily tobacco consumption in the past seven days, of which at least 70% is PMI HTUs.
"Total PMI oral smokeless users" are defined as the estimated number of Legal Age (minimum 21 years in the U.S and minimum 18 years1 outside the U.S) users of oral smokeless products who consumed at least one of PMI oral smokeless products (nicotine pouches in the U.S., and nicotine pouches or snus outside the U.S) over the past seven days.
"Total PMI e-Vapor users" is defined as the estimated number of Legal Age (minimum 18 years1) users of e-Vapor products, who consumed at least one of PMI e-Vapor products in the past seven days.
"Poly-users across PMI SFPs categories" are defined as the estimated number of Legal Age (minimum 18 years1) users who used multiple PMI SFPs over the past seven days.
The above SFPs user metrics reflect PMI estimates, which are based on PMI's proprietary Nicotine Containing Products Tracker (NCPT) in combination with SFP multicategory offtake volume trends. The NCPT methodology estimates rely on NCPT e-Vapor, oral smokeless (except the U.S.) and poly-usage data, which is calibrated using Total IQOS user data, leveraging our deep understanding of PMI's heat-not-burn category and its size. Total PMI oral smokeless users in the U.S. are approximated through volume-based estimations, as NCPT data for the U.S. is not currently available.
Note: PMI SFPs user estimates are derived from sample-based estimations from NCPT at 95% Confidence Interval. The accuracy and reliability of PMI SFPs users estimates may vary based on sample size, market maturity and availability of information.
"Oral smoke-free product volume" excludes snuff, snuff leaf and U.S. chew and is measured in cans or, for the purposes of total shipment volumes, in pouches or pouch equivalents.
"Other Oral SFP volume" includes tobacco bits and chew bags.
1 Minimum 18 years or older depending on market regulation
Oral smoke-free products conversion: (i) nicotine pouches: 15 pouches per can in the U.S. and approximately 20 pouches per can outside the U.S.; (ii) snus products: weighted average 21 pouches equivalent per can; (iii) moist snuff products: weighted average 17 pouches equivalent per can; (iv) tobacco bits products: weighted average 30 pouches equivalent per can; (v) chew bags products: weighted average 20 pouches per can.
E-vapor products conversion: one milliliter of e-vapor liquid equivalent to 10 units.
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Diluted Earnings Per Share (EPS)($ in millions, except per share data) / (Unaudited)
Quarters Ended September 30, | Diluted EPS | Nine Months Ended September 30, |
$ 2.23 | 2025 Diluted Earnings Per Share (1) | $ 5.89 |
$ 1.97 | 2024 Diluted Earnings Per Share (1) | $ 4.89 |
$ 0.26 | Change | $ 1.00 |
13.2 % | % Change Reconciliation: | 20.4% |
$ 1.97 | 2024 Diluted Earnings Per Share (1) | $ 4.89 |
- | 2024 Restructuring charges | 0.09 |
0.12 | 2024 Amortization of intangibles | 0.29 |
- | 2024 Impairment of other intangibles | 0.01 |
0.03 | 2024 Egypt sales tax charge | 0.03 |
0.13 | 2024 Loss on sale of Vectura Group | 0.13 |
(0.10) | 2024 Income tax impact associated with Swedish Match AB financing | (0.01) |
(0.24) | 2024 Fair value adjustment for equity security investments | (0.39) |
- | 2024 Tax Items | (0.03) |
- | 2025 Restructuring charges | (0.13) |
- | 2025 Impairment of goodwill | (0.03) |
(0.13) | 2025 Amortization of intangibles | (0.37) |
- | 2025 Income tax impact associated with Swedish Match AB financing | 0.24 |
(0.10) | 2025 Germany excise tax classification litigation charge | (0.10) |
0.10 | 2025 RBH (Canada) Plan Implementation, including dividend income, net | 0.10 |
(0.09) | 2025 Impairment of Wellness & Healthcare related equity investment | (0.09) |
0.07 | 2025 Fair value adjustment for equity security investments | 0.33 |
0.14 | 2025 Tax Items | 0.11 |
0.08 | Currency | 0.02 |
(0.02) | Interest | 0.03 |
0.06 | Change in tax rate | - |
0.21 | Operations (2) | 0.77 |
$ 2.23 | 2025 Diluted Earnings Per Share (1) | $ 5.89 |
Basic and diluted EPS were calculated using the following (in millions):
Quarters Ended Nine Months Ended September 30, September 30,2025
2024
2025
2024
$ 3,478
$ 3,082
Net Earnings attributable to PMI
$ 9,207
$ 7,636
10
9
Less: Distributed and undistributed earnings attributable to share-based payment awards (3)
26
22
$ 3,468
$ 3,073
Net Earnings for basic and diluted EPS
$ 9,181
$ 7,614
1,557
1,555
Weighted-average shares for basic EPS
1,556
1,554
1
1
Plus Contingently Issuable Performance Stock Units (3)
2
2
1,558
1,556
Weighted-average shares for diluted EPS
1,558
1,556
Includes the impact of shares outstanding and share-based payments
Including rounding adjustment
Note: EPS is computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency, and Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS, excluding Currency (Unaudited) Quarters Ended September 30, Nine Months Ended September 30,2025 | 2024 | % Change | 2025 | 2024 | % Change | ||
$ 2.23 | $ 1.97 | 13.2 % | Reported Diluted EPS | $ 5.89 | $ 4.89 | 20.4 % | |
0.08 | Less: Currency | 0.02 | |||||
$ 2.15 | $ 1.97 | 9.1 % | Reported Diluted EPS, excluding Currency | $ 5.87 | $ 4.89 | 20.0 % | |
Quarters Ended September 30, Nine Months Ended September 30, Year Ended | |||||||
2025 | 2024 | % Change | 2025 | 2024 | % Change | 2024 | |
$ 2.23 | $ 1.97 | 13.2 % | Reported Diluted EPS | $ 5.89 | $ 4.89 | 20.4 % | $ 4.52 |
- | - | Restructuring charges | 0.13 | 0.09 | 0.10 | ||
- | 0.03 | Egypt sales tax charge | - | 0.03 | 0.03 | ||
- | 0.13 | Loss on sale of Vectura Group | - | 0.13 | 0.13 | ||
- | - | Impairment of goodwill and other intangibles | 0.03 | 0.01 | 0.01 | ||
0.13 | 0.12 | Amortization of intangibles | 0.37 | 0.29 | 0.40 | ||
- | - | Megapolis localization tax impact | - | - | 0.05 | ||
- | (0.10) | Income tax impact associated with Swedish Match AB financing | (0.24) | (0.01) | 0.14 | ||
0.10 | - | Germany excise tax classification litigation charge | 0.10 | - | - | ||
(0.10) | - | RBH (Canada) Plan Implementation, including dividend income, net | (0.10) | - | - | ||
0.09 | - | Impairment of Wellness & Healthcare related equity investment | 0.09 | - | - | ||
(0.07) | (0.24) | Fair value adjustment for equity security investments | (0.33) | (0.39) | (0.27) | ||
- | - | Impairment related to the RBH equity investment | - | - | 1.49 | ||
(0.14) | - | Tax items | (0.11) | (0.03) | (0.03) | ||
$ 2.24 | $ 1.91 | 17.3 % | Adjusted Diluted EPS | $ 5.83 | $ 5.01 | 16.4 % | $ 6.57 |
0.08 | Less: Currency | 0.02 | |||||
$ 2.16 | $ 1.91 | 13.1 % | Adjusted Diluted EPS, excluding Currency | $ 5.81 | $ 5.01 | 16.0 % | |
Note: EPS is computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions / Divestitures($ in millions) / (Unaudited)
Net Revenues | Currency | Net Revenues excluding Currency | Acquisitions / Divestitures | Net Revenues excl. Currency & Acquisitions / Divestitures | Quarters Ended September 30, | Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions / Divestitures | |||
2025 | Combustible Tobacco | 2024 | % Change | |||||||||
$ 2,478 | $ 151 | $ 2,327 | $ - | $ 2,327 | Europe | $ 2,322 | 6.7 % | 0.2 % | 0.2 % | |||
2,753 | 46 | 2,706 | - | 2,706 | SSEA, CIS & MEA | 2,612 | 5.4 % | 3.6 % | 3.6 % | |||
649 | 11 | 638 | - | 638 | EA, AU & PMI GTR | 673 | (3.6)% | (5.2)% | (5.2)% | |||
520 | (6) | 526 | - | 526 | Americas | 527 | (1.2)% | (0.1)% | (0.1)% | |||
$ 6,400 | $ 203 | $ 6,197 | $ - | $ 6,197 | Total Combustible Tobacco | $ 6,134 | 4.3 % | 1.0 % | 1.0 % | |||
2025 | Smoke-Free | 2024 | % Change | |||||||||
$ 2,241 | $ 140 | $ 2,101 | $ (38) | $ 2,140 | Europe | $ 1,875 | 19.5 % | 12.1 % | 14.1 % | |||
57 | 4 | 54 | (38) | 92 | of which, Wellness & Healthcare | 76 | (24.3)% | (28.9)% | 21.7 % | |||
520 | 31 | 490 | - | 490 | SSEA, CIS & MEA | 352 | 47.9 % | 39.2 % | 39.2 % | |||
1,119 | 12 | 1,107 | - | 1,107 | EA, AU & PMI GTR | 929 | 20.4 % | 19.1 % | 19.1 % | |||
565 | - | 565 | - | 565 | Americas | 621 | (9.1)% | (9.1)% | (9.1)% | |||
$ 4,445 | $ 182 | $ 4,263 | $ (38) | $ 4,301 | Total Smoke-Free | $ 3,777 | 17.7 % | 12.9 % | 13.9 % | |||
2025 | PMI | 2024 | % Change | |||||||||
$ 4,719 | $ 291 | $ 4,428 | $ (38) | $ 4,466 | Europe | $ 4,197 | 12.4 % | 5.5 % | 6.4 % | |||
3,273 | 77 | 3,196 | - | 3,196 | SSEA, CIS & MEA | 2,964 | 10.4 % | 7.8 % | 7.8 % | |||
1,768 | 23 | 1,745 | - | 1,745 | EA, AU & PMI GTR | 1,602 | 10.4 % | 8.9 % | 8.9 % | |||
1,085 | (6) | 1,091 | - | 1,091 | Americas | 1,148 | (5.5)% | (5.0)% | (5.0)% | |||
$ 10,845 | $ 385 | $ 10,460 | $ (38) | $ 10,498 | Total PMI | $ 9,911 | 9.4 % | 5.5 % | 5.9 % | |||
Note: Sum of product categories or Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions / DivestituresNet Revenues | Currency | Net Revenues excluding Currency | Acquisitions / Divestitures | Net Revenues excl. Currency & Acquisitions / | Nine Months Ended September 30, | Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions / Divestitures | |||
Divestitures | ||||||||||||
2025 | Combustible Tobacco | 2024 | % Change | |||||||||
$ 6,713 | $ 130 | $ 6,583 | $ - | $ 6,583 | Europe | $ 6,467 | 3.8 % | 1.8 % | 1.8 % | |||
7,670 | (27) | 7,697 | - | 7,697 | SSEA, CIS & MEA | 7,390 | 3.8 % | 4.2 % | 4.2 % | |||
1,851 | (5) | 1,857 | - | 1,857 | EA, AU & PMI GTR | 1,889 | (2.0)% | (1.7)% | (1.7)% | |||
1,551 | (98) | 1,649 | - | 1,649 | Americas | 1,653 | (6.1)% | (0.2)% | (0.2)% | |||
$ 17,786 | $ - | $ 17,786 | $ - | $ 17,786 | Total Combustible Tobacco | $ 17,399 | 2.2 % | 2.2 % | 2.2 % | |||
2025 | Smoke-Free | 2024 | % Change | |||||||||
$ 5,800 | $ 111 | $ 5,689 | $ (126) | $ 5,815 | Europe | $ 5,080 | 14.2 % | 12.0 % | 14.5 % | |||
166 | 3 | 163 | (126) | 290 | of which, Wellness & Healthcare | 246 | (32.5)% | (33.6)% | 17.8 % | |||
1,272 | 35 | 1,237 | - | 1,237 | SSEA, CIS & MEA | 1,003 | 26.8 % | 23.3 % | 23.3 % | |||
3,356 | (25) | 3,380 | - | 3,380 | EA, AU & PMI GTR | 3,070 | 9.3 % | 10.1 % | 10.1 % | |||
2,073 | (5) | 2,078 | - | 2,078 | Americas | 1,620 | 27.9 % | 28.2 % | 28.2 % | |||
$ 12,500 | $ 116 | $ 12,384 | $ (126) | $ 12,510 | Total Smoke-Free | $ 10,773 | 16.0 % | 15.0 % | 16.1 % | |||
2025 | PMI | 2024 | % Change | |||||||||
$ 12,513 | $ 241 | $ 12,272 | $ (126) | $ 12,398 | Europe | $ 11,547 | 8.4 % | 6.3 % | 7.4 % | |||
8,942 | 8 | 8,934 | - | 8,934 | SSEA, CIS & MEA | 8,393 | 6.5 % | 6.4 % | 6.4 % | |||
5,207 | (30) | 5,237 | - | 5,237 | EA, AU & PMI GTR | 4,959 | 5.0 % | 5.6 % | 5.6 % | |||
3,624 | (103) | 3,727 | - | 3,727 | Americas | 3,273 | 10.7 % | 13.9 % | 13.9 % | |||
$ 30,286 | $ 116 | $ 30,170 | $ (126) | $ 30,296 | Total PMI | $ 28,172 | 7.5 % | 7.1 % | 7.5 % | |||
($ in millions) / (Unaudited)
Note: Sum of product categories or Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million
Gross Profit Special Items (1) Adjusted Gross Profit Currency Adjusted Gross Profit excluding Currency Acquisitions / Divestitures Adjusted Gross Profit excl. Currency & Acquisitions / Divestitures Quarters Ended September 30, Gross Profit Special Items (1) Adjusted Gross Profit Total Excluding Currency Excluding Currency & Acquisitions / Divestitures 2025 2024 % Change $ 4,253 $ - $ 4,253 $ 117 $ 4,136 $ - $ 4,136 Combustible Tobacco $ 3,947 $ - $ 3,947 7.7 % 4.8 % 4.8 % 2025 2024 % Change $ 3,104 $ (6) $ 3,110 $ 123 $ 2,987 $ (11) $ 2,998 Smoke-Free $ 2,598 $ (14) $ 2,612 19.1 % 14.4 % 14.8 % 2025 2024 % Change $ 7,358 $ (5) $ 7,363 $ 242 $ 7,121 $ (11) $ 7,132 Total PMI $ 6,545 $ (14) $ 6,559 12.3 % 8.6 % 8.7 %(1) 2025 third-quarter reflects amortization of intangibles in Smoke-free, all amounts are related to cost of goods sold. 2024 third-quarter reflects amortization of intangibles in Smoke-free, all amounts are related to cost of goods sold.
Note: Sum of product categories and special items might not foot due to roundings.
Gross Profit Special Items (1) Adjusted Gross Profit Currency Adjusted Gross Profit excluding Currency Acquisitions / Divestitures Adjusted Gross Profit excl. Currency & Acquisitions / Divestitures Nine Months Ended September 30, Gross Profit Special Items (1) Adjusted Gross Profit Total Excluding Currency Excluding Currency & Acquisitions / Divestitures 2025 2024 % Change $ 11,737 $ - $ 11,737 $ (17) $ 11,755 $ 31 $ 11,724 Combustible Tobacco $ 11,173 $ - $ 11,173 5.1 % 5.2 % 4.9 % 2025 2024 % Change$ 8,742 | $ (16) | $ 8,759 | $ 69 | $ 8,689 | $ (59) | $ 8,749 | Smoke-Free | $ 7,093 | $ (46) | $ 7,139 | 22.7 % | 21.7 % | 22.5 % | |||
2025 | 2024 | % Change | ||||||||||||||
$ 20,480 | $ (16) | $ 20,496 | $ 53 | $ 20,443 | $ (28) | $ 20,471 | Total PMI | $ 18,266 | $ (46) | $ 18,312 | 11.9 % | 11.6 % | 11.8 % | |||
(1) 2025 nine months ended September 30 reflects amortization of intangibles in Smoke-free, all amounts are related to cost of goods sold. 2024 nine months ended September 30 reflects amortization of intangibles in Smoke-free, all amounts are related to cost of goods sold.
Note: Sum of product categories and special items might not foot due to roundings.
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Adjustments of Operating Income for the Impact of Currency and Acquisitions / Divestitures($ in millions) / (Unaudited)
Operating Income | Currency | Operating Income excluding Currency 2025 | Acquisitions / Divestitures | Income excluding Currency & Acquisitions / Divestitures | Quarters Ended September 30, | Operating Income 2024 | Total | Excluding Currency % Change | Excluding Currency & Acquisitions / Divestitures | |||
$ 2,150 | $ 162 | $ 1,988 | $ 18 | $ 1,970 | Europe | $ 1,769 | 21.5 % | 12.4 % | 11.4 % | |||
1,235 | 49 | 1,186 | - | 1,186 | SSEA, CIS & MEA | 960 | 28.6 % | 23.5 % | 23.5 % | |||
846 | (36) | 882 | - | 882 | EA, AU & PMI GTR | 788 | 7.4 % | 11.9 % | 11.9 % | |||
32 | 21 | 11 | - | 11 | Americas | 137 | (76.6)% | (92.0)% | (92.0)% | |||
$ 4,263 | $ 196 | $ 4,067 | $ 18 | $ 4,049 | Total PMI | $ 3,654 | 16.7 % | 11.3 % | 10.8 % | |||
2025 | Nine Months Ended September 30, | 2024 | % Change | |||||||||
$ 5,255 | $ 187 | $ 5,068 | $ 53 | $ 5,015 | Europe | $ 4,797 | 9.5 % | 5.6 % | 4.5 % | |||
3,155 | 11 | 3,144 | 31 | 3,113 | SSEA, CIS & MEA | 2,623 | 20.3 % | 19.9 % | 18.7 % | |||
2,612 | (31) | 2,643 | - | 2,643 | EA, AU & PMI GTR | 2,304 | 13.4 % | 14.7 % | 14.7 % | |||
497 | (53) | 550 | - | 550 | Americas | 419 | 18.6 % | 31.3 % | 31.3 % | |||
$ 11,519 | $ 114 | $ 11,405 | $ 84 | $ 11,321 | Total PMI | $ 10,143 | 13.6 % | 12.4 % | 11.6 % |
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency and Acquisitions / Divestitures($ in millions) / (Unaudited)
Operating Income | Special Items (1) | Adjusted Operating Income | Currency 2025 | Adjusted Operating Income excluding Currency | Acquisitions / Divestitures | Operating Income excluding Currency & Acquisitions / Divestitures | Quarters Ended September 30, | Operating Income | Special Items (1) 2024 | Adjusted Operating Income | Total | Excluding Currency % Change | Excluding Currency & Acquisitions / Divestitures | |
$ 2,150 | $ (224) | $ 2,373 | $ 162 | $ 2,211 | $ 9 | $ 2,202 | Europe | $ 1,769 | $ (251) | $ 2,019 | 17.5 % | 9.5 % | 9.1 % | |
1,235 | (4) | 1,239 | 49 | 1,190 | - | 1,190 | SSEA, CIS & MEA | 960 | (50) | 1,009 | 22.8 % | 17.9 % | 17.9 % | |
846 | (1) | 847 | (36) | 883 | - | 883 | EA, AU & PMI GTR | 788 | (1) | 789 | 7.4 % | 11.9 % | 11.9 % | |
32 | (179) | 211 | 21 | 190 | - | 190 | Americas | 137 | (198) | 336 | (37.2)% | (43.5)% | (43.5)% | |
$ 4,263 | $ (407) | $ 4,670 | $ 196 | $ 4,474 | $ 9 | $ 4,465 | Total PMI | $ 3,654 | $ (499) | $ 4,153 | 12.4 % | 7.7 % | 7.5 % | |
2025 | Nine Months Ended September 30, | 2024 | % Change | |||||||||||
$ 5,255 | $ (598) | $ 5,853 | $ 187 | $ 5,666 | $(3) | $ 5,669 | Europe | $ 4,797 | $ (387) | $ 5,184 | 12.9 % | 9.3 % | 9.4 % | |
3,155 | (12) | 3,167 | 11 | 3,156 | 31 | 3,125 | SSEA, CIS & MEA | 2,623 | (59) | 2,682 | 18.1 % | 17.7 % | 16.5 % | |
2,612 | (2) | 2,614 | (31) | 2,645 | - | 2,645 | EA, AU & PMI GTR | 2,304 | (2) | 2,306 | 13.4 % | 14.7 % | 14.7 % | |
497 | (575) | 1,072 | (53) | 1,125 | - | 1,125 | Americas | 419 | (578) | 997 | 7.5 % | 12.8 % | 12.8 % | |
$ 11,519 | $ (1,187) | $ 12,706 | $ 114 | $ 12,592 | $ 28 | $ 12,564 | Total PMI | $ 10,143 | $ (1,026) | $ 11,169 | 13.8 % | 12.7 % | 12.5 % | |
(1) See Schedule 9 and Schedule 10 for Special Items details Note: Sum of special items might not foot due to roundings. | ||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)
Quarters Ended September 30, Change Fav./(Unfav.) Variance Fav./(Unfav.)
PMI | 2025 | 2024 | Total | Excl. Curr. & Acquisitions / Divestitures | Total | Currency | Acquisitions / Divestitures | Price | Vol/Mix | Cost/Other | ||
Reported Operating Income | $ 4,263 | $ 3,654 | 16.7 % | 10.8 % | $ 609 | $ 196 | $ 18 | $ 305 | $ 258 | $ (168) | ||
Loss on sale of Vectura Group | - | (198) | 100.0 % | 100.0 % | 198 | - | - | - | - | 198 | ||
Amortization of intangibles | (250) | (256) | 2.3 % | (1.2)% | 6 | - | 9 | - | - | (3) | ||
Germany excise tax classification litigation charge | (176) | - | - % | - % | (176) | - | - | - | - | (176) | ||
RBH (Canada) Plan Implementation | 19 | - | - % | - % | 19 | - | - | - | - | 19 | ||
Egypt sales tax charge | - | (45) | 100.0 % | 100.0 % | 45 | - | - | - | - | 45 | ||
Adjusted Operating Income | $ 4,670 | $ 4,153 | 12.4 % | 7.5 % | $ 517 | $ 196 | $ 9 | $ 305 | $ 258 | $ (251) | ||
Europe | ||||||||||||
Reported Operating Income | $ 2,150 | $ 1,769 | 21.5 % | 11.4 % | $ 381 | $ 162 | $ 18 | $ 220 | $ 10 | $ (29) | ||
Amortization of intangibles | (49) | (53) | 7.7 % | (9.1)% | 4 | - | 9 | - | - | (5) | ||
Germany excise tax classification litigation charge | (176) | - | - % | - % | (176) | - | - | - | - | (176) | ||
Loss on sale of Vectura Group | - | (198) | 100.0 % | 100.0 % | 198 | - | - | - | - | 198 | ||
Adjusted Operating Income | $ 2,373 | $ 2,019 | 17.5 % | 9.1 % | $ 354 | $ 162 | $ 9 | $ 220 | $ 10 | $ (46) | ||
SSEA, CIS & MEA | ||||||||||||
Reported Operating Income | $ 1,235 | $ 960 | 28.6 % | 23.5 % | $ 275 | $ 49 | $ - | $ 254 | $ 26 | $ (54) | ||
Amortization of intangibles | (4) | (4) | 14.6 % | 14.6 % | 1 | - | - | - | - | 1 | ||
Egypt sales tax charge | - | (45) | 100.0 % | 100.0 % | 45 | - | - | - | - | 45 | ||
Adjusted Operating Income | $ 1,239 | $ 1,009 | 22.8 % | 17.9 % | $ 230 | $ 49 | $ - | $ 254 | $ 26 | $ (100) |
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)
Quarters Ended September 30, Change Fav./(Unfav.) Variance Fav./(Unfav.)
EA, AU & PMI GTR | 2025 | 2024 | Total | Excl. Curr. & Acquisitions / Divestitures | Total | Currency | Acquisitions / Divestitures | Price | Vol/Mix | Cost/Other | ||
Reported Operating Income | $ 846 | $ 788 | 7.4 % | 11.9 % | $ 58 | $ (36) | $ - | $ 35 | $ 86 | $ (27) | ||
Amortization of intangibles | (1) | (1) | - % | - % | - | - | - | - | - | - | ||
Adjusted Operating Income | $ 847 | $ 789 | 7.4 % | 11.9 % | $ 58 | $ (36) | $ - | $ 35 | $ 86 | $ (27) | ||
Americas | ||||||||||||
Reported Operating Income | $ 32 | $ 137 | (76.6)% | (92.0)% | $ (105) | $ 21 | $ - | $ (204) | $ 136 | $ (58) | ||
Amortization of intangibles | (198) | (198) | 0.3 % | 0.3 % | 1 | - | - | - | - | 1 | ||
RBH (Canada) Plan Implementation | 19 | - | - % | - % | 19 | - | - | - | - | 19 | ||
Adjusted Operating Income | $ 211 | $ 336 | (37.2)% | (43.5)% | $ (125) | $ 21 | $ - | $ (204) | $ 136 | $ (77) |
Note: Sum of special items might not foot due to roundings. Special items between -$0.5 million and +$0.5 million are not displayed by segment.
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)
Nine Months Ended September 30, Change Fav./(Unfav.) Variance Fav./(Unfav.)
PMI | 2025 | 2024 | Total | Excl. Curr. & Acquisitions / Divestitures | Total | Currency | Acquisitions / Divestitures | Price | Vol/Mix | Cost/Other | |||
Reported Operating Income | $ 11,519 | $ 10,143 | 13.6 % | 11.6 % | $ 1,376 | $ 114 | $ 84 | $ 1,251 | $ 1,009 | $ (1,082) | |||
Restructuring charges | (243) | (168) | (44.6)% | (44.6)% | (75) | - | - | - | - | (75) | |||
Impairment of goodwill and other intangibles | (41) | (27) | (51.9)% | -(100)% | (14) | - | 26 | - | - | (40) | |||
Egypt sales tax charge | - | (45) | 100.0 % | 100.0 % | 45 | - | - | - | - | 45 | |||
Loss on sale of Vectura Group | - | (198) | 100.0 % | 100.0 % | 198 | - | - | - | - | 198 | |||
Germany excise tax classification litigation charge | (176) | - | - % | - % | (176) | - | - | - | - | (176) | |||
RBH (Canada) Plan Implementation | 19 | - | - % | - % | 19 | - | - | - | - | 19 | |||
Amortization of intangibles | (746) | (588) | (26.9)% | (32.0)% | (158) | - | 30 | - | - | (188) | |||
Adjusted Operating Income | $ 12,706 | $ 11,169 | 13.8 % | 12.5 % | $ 1,537 | $ 114 | $ 28 | $ 1,251 | $ 1,009 | $ (865) | |||
Europe | |||||||||||||
Reported Operating Income | $ 5,255 | $ 4,797 | 9.5 % | 4.5 % | $ 458 | $ 187 | $ 53 | $ 647 | $ 97 | $ (526) | |||
Restructuring charges | (243) | - | - % | - % | (243) | - | - | - | - | (243) | |||
Impairment of goodwill and other intangibles | (41) | (26) | (56.2)% | -(100)% | (15) | - | 26 | - | - | (41) | |||
Amortization of intangibles | (138) | (162) | 14.9 % | (3.6)% | 24 | - | 30 | - | - | (6) | |||
Germany excise tax classification litigation charge | (176) | - | - % | - % | (176) | - | - | - | - | (176) | |||
Loss on sale of Vectura Group | - | (198) | 100.0 % | 100.0 % | 198 | - | - | - | - | 198 | |||
Adjusted Operating Income | $ 5,853 | $ 5,184 | 12.9 % | 9.4 % | $ 669 | $ 187 | $ (3) | $ 647 | $ 97 | $ (258) | |||
SSEA, CIS & MEA | |||||||||||||
Reported Operating Income | $ 3,155 | $ 2,623 | 20.3 % | 18.7 % | $ 532 | $ 11 | $ 31 | $ 596 | $ 160 | $ (266) | |||
Amortization of intangibles | (12) | (14) | 14.1 % | 14.1 % | 2 | - | - | - | - | 2 | |||
Egypt sales tax charge | - | (45) | 100.0 % | 100.0 % | 45 | - | - | - | - | 45 | |||
Adjusted Operating Income | $ 3,167 | $ 2,682 | 18.1 % | 16.5 % | $ 485 | $ 11 | $ 31 | $ 596 | $ 160 | $ (313) | |||
EA, AU & PMI GTR | |||||||||||||
Reported Operating Income | $ 2,612 | $ 2,304 | 13.4 % | 14.7 % | $ 308 | $ (31) | $ - | $ 68 | $ 270 | $ 1 | |||
Amortization of intangibles | (2) | (2) | 0.2 % | 0.2 % | - | - | - | - | - | - | |||
Adjusted Operating Income | $ 2,614 | $ 2,306 | 13.4 % | 14.7 % | $ 308 | $ (31) | $ - | $ 68 | $ 270 | $ 1 |
Schedule 10 (2 of 2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)
Nine Months Ended September 30, Change Fav./(Unfav.) Variance Fav./(Unfav.)
Excl. Curr. &
Americas 2025 2024 Total Acquisitions / Divestitures
Acquisitions
Total Currency
/ Divestitures
Price Vol/Mix Cost/Other
Reported Operating Income | $ 497 | $ 419 | 18.6 % | 31.3 % | $ 78 | $ (53) | $ - | $ (60) | $ 482 | $ (291) |
Restructuring charges | - | (168) | 100.0 % | 100.0 % | 168 | - | - | - | - | 168 |
Amortization of intangibles | (594) | (410) | (44.9)% | (44.9)% | (184) | - | - | - | - | (184) |
RBH (Canada) Plan Implementation | 19 | - | - % | - % | 19 | - | - | - | - | 19 |
Adjusted Operating Income | $ 1,072 | $ 997 | 7.5 % | 12.8 % | $ 75 | $ (53) | $ - | $ (60) | $ 482 | $ (294) |
Note: Sum of special items might not foot due to roundings. Special items between -$0.5 million and +$0.5 million are not displayed by segment.
Schedule 11PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures
Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions / Divestitures($ in millions) / (Unaudited)
Adjusted Operating Income (1) | Net Revenues (2) | Adjusted Operating Income Margin | Adjusted Operating Income excluding Currency (1) | Net Revenues excluding Currency (2) | Adjusted Operating Income Margin excluding Currency | Adjusted Operating Income excluding Currency & Acquisitions / Divestitures (1) | Net Revenues excluding Currency & Acquisitions / Divestitur es (2) | Adjusted Operating Income Margin excluding Currency & Acquisitions / Divestitur es | Adjusted Operating Income (1) | Net Revenues (2) | Adjusted Operating Income Margin | Adjusted Operating Adjusted Income Adjusted Operating Margin Operating Income excluding Income Margin Currency Margin excluding & Acqui- Currency sitions / Divestitur es | |||
2025 | Quarters Ended September 30, | 2024 | % Points Change | ||||||||||||
$ 2,373 | $ 4,719 | 50.3 % | $ 2,211 | $ 4,428 | 49.9 % | $ 2,202 | $ 4,466 | 49.3 % | Europe | $ 2,019 | $ 4,197 | 48.1 % | 2.2 | 1.8 | 1.2 |
1,239 | 3,273 | 37.9 % | 1,190 | 3,196 | 37.2 % | 1,190 | 3,196 | 37.2 % | SSEA, CIS & MEA | 1,009 | 2,964 | 34.0 % | 3.9 | 3.2 | 3.2 |
847 | 1,768 | 47.9 % | 883 | 1,745 | 50.6 % | 883 | 1,745 | 50.6 % | EA, AU & PMI GTR | 789 | 1,602 | 49.3 % | (1.4) | 1.3 | 1.3 |
211 | 1,085 | 19.4 % | 190 | 1,091 | 17.4 % | 190 | 1,091 | 17.4 % | Americas | 336 | 1,148 | 29.3 % | (9.9) | (11.9) | (11.9) |
$ 4,670 | $ 10,845 | 43.1 % | $ 4,474 | $ 10,460 | 42.8 % | $ 4,465 | $ 10,498 | 42.5 % | Total PMI | $ 4,153 | $ 9,911 | 41.9 % | 1.2 | 0.9 | 0.6 |
2025 | Nine Months Ended September 30, | 2024 | % Points Change | ||||||||||||
$ 5,853 | $ 12,513 | 46.8 % | $ 5,666 | $ 12,272 | 46.2 % | $ 5,669 | $ 12,398 | 45.7 % | Europe | $ 5,184 | $ 11,547 | 44.9 % | 1.9 | 1.3 | 0.8 |
3,167 | 8,942 | 35.4 % | 3,156 | 8,934 | 35.3 % | 3,125 | 8,934 | 35.0 % | SSEA, CIS & MEA | 2,682 | 8,393 | 32.0 % | 3.4 | 3.3 | 3.0 |
2,614 | 5,207 | 50.2 % | 2,645 | 5,237 | 50.5 % | 2,645 | 5,237 | 50.5 % | EA, AU & PMI GTR | 2,306 | 4,959 | 46.5 % | 3.7 | 4.0 | 4.0 |
1,072 | 3,624 | 29.6 % | 1,125 | 3,727 | 30.2 % | 1,125 | 3,727 | 30.2 % | Americas | 997 | 3,273 | 30.5 % | (0.9) | (0.3) | (0.3) |
$ 12,706 | $ 30,286 | 42.0 % | $ 12,592 | $ 30,170 | 41.7 % | $ 12,564 | $ 30,296 | 41.5 % | Total PMI | $ 11,169 | $ 28,172 | 39.6 % | 2.4 | 2.1 | 1.9 |
For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to Schedule 8
For the calculation of Net Revenues excluding currency and acquisitions refer to Schedule 3 and 4
Schedule 12PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Statements of Earnings($ in millions, except per share data) / (Unaudited)
Quarters Ended September 30, Nine Months Ended September 30,2025
2024
Change Fav./(Unfav.)
2025
2024
Change Fav./(Unfav.)
$ 10,845
$ 9,911
9.4 %
Net Revenues
$ 30,286
$ 28,172
7.5 %
3,487
3,366
(3.6)%
Cost of sales
9,806
9,906
1.0 %
7,358
6,545
12.4 %
Gross profit
20,480
18,266
12.1 %
3,095
2,891
(7.1)%
Marketing, administration and research costs
8,920
8,123
(9.8)%
-
-
- %
Impairment of goodwill
41
-
- %
4,263
3,654
16.7 %
Operating Income
11,519
10,143
13.6 %
230
189
(21.7)%
Interest expense, net
748
817
8.4 %
14
15
6.7 %
Pension and other employee benefit costs
37
44
15.9 %
4,019
3,450
16.5 %
Earnings before income taxes
10,734
9,282
15.6 %
751
735
(2.2)%
Provision for income taxes
2,062
2,145
3.9 %
(345)
(500)
(31.0)%
Equity investments and securities (income)/loss, net
(926)
(852)
8.7 %
3,613
3,215
12.4 %
Net Earnings
9,598
7,989
20.1 %
135
133
(1.5)%
Net Earnings attributable to noncontrolling interests
391
353
(10.8)%
$ 3,478
$ 3,082
12.8 %
Net Earnings attributable to PMI
$ 9,207
$ 7,636
20.6 %
Per share data: (1)
$ 2.23
$ 1.98
12.6 %
Basic Earnings Per Share
$ 5.90
$ 4.90
20.4 %
$ 2.23
$ 1.97
13.2 %
Diluted Earnings Per Share
$ 5.89
$ 4.89
20.4 %
Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations for the quarters and nine months ended September 30, 2025 and 2024 are shown on Schedule 1, Footnote 1
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Balance Sheets($ in millions) / (Unaudited)
September 30, | December 31, | ||
2025 | 2024 | ||
Assets | |||
Cash and cash equivalents | $ 4,037 | $ 4,216 | |
All other current assets | 18,628 | 15,954 | |
Property, plant and equipment, net | 8,115 | 7,310 | |
Goodwill | 17,181 | 16,600 | |
Other intangible assets, net | 11,146 | 11,327 | |
Equity investments | 3,133 | 2,654 | |
Other assets | 4,821 | 3,723 | |
Total assets | $ 67,061 | $ 61,784 | |
Liabilities and Stockholders' (Deficit) Equity | |||
Short-term borrowings | $ 1,880 | $ 137 | |
Current portion of long-term debt | 6,339 | 3,392 | |
All other current liabilities | 18,500 | 19,386 | |
Long-term debt | 41,863 | 42,166 | |
Deferred income taxes | 1,999 | 2,517 | |
Other long-term liabilities | 5,464 | 4,056 | |
Total liabilities | 76,045 | 71,654 | |
Total PMI stockholders' deficit | (10,914) | (11,750) | |
Noncontrolling interests | 1,930 | 1,880 | |
Total stockholders' (deficit) equity | (8,984) | (9,870) | |
Total liabilities and stockholders' (deficit) equity | $ 67,061 | $ 61,784 |
($ in millions, except ratios) / (Unaudited)
Year Ended September 30, 2025 Year EndedOctober ~ December
January ~ September
12 months
December 31, 20242024 2025 rolling
Net Earnings | $ (486) | $ 9,598 | $ 9,112 | $ 7,503 |
Equity investments and securities (income)/loss, net | 215 | (926) | (711) | (637) |
Provision for income taxes | 872 | 2,062 | 2,934 | 3,017 |
Interest expense, net | 326 | 748 | 1,074 | 1,143 |
Impairment related to the RBH equity investment | 2,316 | - | 2,316 | 2,316 |
Depreciation, amortization and impairment of goodwill and other intangibles | 477 | 1,516 | 1,993 | 1,814 |
Restructuring charges and Others (1) | 13 | 400 | 413 | 424 |
Adjusted EBITDA | $ 3,733 | $ 13,398 | $ 17,131 | $ 15,580 |
September 30, 2025 | December 31, 2024 | |||
Short-term borrowings | $ 1,880 | $ 137 | ||
Current portion of long-term debt | 6,339 | 3,392 | ||
Long-term debt | 41,863 | 42,166 | ||
Total Debt | $ 50,082 | $ 45,695 | ||
Cash and cash equivalents | 4,037 | 4,216 | ||
Net Debt | $ 46,045 | $ 41,479 | ||
Ratios: | ||||
Total Debt to Adjusted EBITDA | 2.92 | 2.93 | ||
Net Debt to Adjusted EBITDA | 2.69 | 2.66 |
(1) For the period January 2025 to September 2025 "Others" includes Germany excise tax classification litigation charge ($176 million) and other immaterial items.
Reconciliation of Operating Cash Flow to Operating Cash Flow, excluding Currency($ in millions) / (Unaudited)
Quarters Ended September 30, Nine Months Ended September 30,2025 | 2024 | % Change | 2025 | 2024 | % Change | |
$ 4,462 | $ 3,342 | 33.5 % | Net cash provided by operating activities (1) | $ 7,524 | $ 8,215 | (8.4)% |
262 | Less: Currency | 331 | ||||
$ 4,200 | $ 3,342 | 25.7 % | Net cash provided by operating activities, excluding currency | $ 7,193 | $ 8,215 | (12.4)% |
(1) Operating cash flow
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Philip Morris International Inc. published this content on October 21, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 21, 2025 at 11:18 UTC.
