Philip Morris International Reports 2025 Fourth-Quarter & Full-Year Results

STAMFORD, CT--( BUSINESS WIRE)--Regulatory News:

Philip Morris International Inc. (PMI) (NYSE: PM) today announces its 2025 fourth quarter results. 1

"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," said Jacek Olczak, Group CEO PMI.

"With excellent results in 2024 and 2025, we have delivered our three-year CAGR targets on operating income and EPS in just two years. With another strong performance expected in 2026, we are on track to outperform our 2024-2026 growth algorithm. This again demonstrates our ability to create sustainable value for our shareholders as we renew our growth targets for 2026-2028."

1 Explanation of PMI's use of non-GAAP measures cited in this document and reconciliations to the most directly comparable U.S. GAAP measures can be found in the “Non-GAAP Measures, Glossary and Explanatory Notes” section of this release, in Exhibit 99.2 to the company's Form 8-K dated February 6, 2026, and here.

Results Highlights

Full-Year 2025 Performance Highlights

Total PMI

SFP

HTU

Oral SFP

E-vapor 2

Cigarettes

Total Shipment Volume

(units bn)

786.5

179.1

155.1

20.7

3.3

607.4

vs. FY 2024

1.4%

12.8%

11.0%

18.5%

+100%

(1.5)%

PMI

Smoke-Free

Business

Combustibles

Net Revenues ($ bn)

$40.6

$16.9

$23.8

reported vs. FY 2024

7.3%

15.0%

2.5%

organic vs. FY 2024

6.5%

14.1%

1.8%

Gross Profit ($ bn)

$27.3

$11.7

$15.6

reported vs. FY 2024

11.1%

20.3%

5.2%

organic vs. FY 2024

10.1%

18.7%

4.4%

Operating Income ($ bn)

$14.9

reported vs. FY 2024

11.1%

organic vs. FY 2024

10.6%

Reported

Diluted

EPS

Adjusting

Items 3

Adjusted

Diluted

EPS

Currency

Impact

Adj. Diluted

EPS ex. Currency

EPS

$7.26

$(0.28)

$7.54

$0.04

$7.50

vs. FY 2024

60.6%

14.8%

14.2%

Fourth-Quarter 2025 Performance Highlights

Total PMI

SFP

HTU

Oral SFP

E-vapor 2

Cigarettes

Total Shipment Volume

(units bn)

193.8

44.3

38.4

5.0

1.0

149.4

vs. Q4 2024

0.1%

8.5%

7.5%

7.3%

91.4%

(2.2)%

PMI

Smoke-Free

Business

Combustibles

Net Revenues ($ bn)

$10.4

$4.4

$6.0

reported vs. Q4 2024

6.8%

12.0%

3.2%

organic vs. Q4 2024

3.7%

8.6%

0.3%

Gross Profit ($ bn)

$6.8

$2.9

$3.9

reported vs. Q4 2024

8.3%

12.2%

5.5%

organic vs. Q4 2024

5.1%

8.3%

2.8%

Operating Income ($ bn)

$3.4

reported vs. Q4 2024

3.5%

organic vs. Q4 2024

4.5%

Reported

Diluted

EPS

Adjusting

Items 3

Adjusted

Diluted

EPS

Currency

Impact

Adj. Diluted

EPS ex. Currency

EPS

$1.37

$(0.33)

$1.70

$0.01

$1.69

vs. Q4 2024

+100%

9.7%

9.0%

2 One milliliter of e-vapor liquid equivalent to 10 units; 2024 volume of e-vapor in billions of units: Q1 0.3, Q2 0.4, Q3 0.5, Q4 0.5

3 For a list of adjusting items refer to additional information section of this release

Note: Sums might not foot to total due to rounding.

2026 Full-Year Forecast

Full-Year

2026

Forecast

2025

Growth

Reported Diluted EPS

$7.87

$8.02

$ 7.26

Adjustments:

Restructuring charges (1)

—

0.14

Impairment of goodwill and other intangibles

—

0.03

Amortization of intangibles

0.51

0.50

Germany excise tax classification litigation charge

—

0.10

RBH (Canada) Plan Implementation, including dividend income, net

—

(0.10)

Impairment of Wellness business related equity investment

—

0.09

Loss on expected sale of consumer accessories and other businesses

—

0.06

Income tax impact associated with Swedish Match AB financing

—

(0.25)

Fair value adjustment for equity security investments

—

(0.18)

Tax items

—

(0.11)

Total Adjustments

0.51

0.28

Adjusted Diluted EPS

$8.38

$8.53

$ 7.54

11.1%

13.1%

Less: Currency

0.27

Adjusted Diluted EPS, excluding currency

$8.11

$8.26

$ 7.54

7.5%

9.5%

(1) 2025 amount reflects pre-tax restructuring charges of $241 million ($222 million net of income tax) with respect to manufacturing footprint optimization in Germany

Reported diluted EPS is forecast to be in a range of $7.87 to $8.02, at prevailing exchange rates, versus reported diluted EPS of $7.26 in 2025. Excluding a total 2026 adjustment of $0.51 per share, this forecast represents a projected increase of 11.1% to 13.1% versus adjusted diluted EPS of $7.54 in 2025. Also excluding a favorable currency impact of $0.27, at prevailing exchange rates, this forecast represents a projected increase of 7.5% to 9.5% versus adjusted diluted EPS of $7.54 in 2025, as outlined in the above table.

2026 Full-Year Forecast Assumptions

This forecast assumes:

Factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections.

2026 - 2028 Growth Targets

Following strong full-year results in 2024 and 2025 coupled with another strong performance expected in 2026, we are on track to deliver at or above the top end of our 2024 to 2026 compound annual growth ranges announced on September 28th, 2023.

Today, the company provides 2026 to 2028 compound annual growth targets of:

– 6% to 8% for net revenues, on an organic basis, with SFP volume growth of high single-digit to low-teens driving total shipment volume growth;

– 8% to 10% for operating income, on an organic basis; and

– 9% to 11% for adjusted diluted EPS, excluding currency, assuming current corporate income tax rates and no share repurchases.

New Segment Reporting

With our smoke-free business now operating at scale across our regions, including substantial growth from our U.S. business, PMI has implemented an evolved organizational model with two primary business units: International and U.S. The updated organizational structure is designed to enhance our agility and to support our journey to become a smoke-free company under the leadership of Jacek Olczak, Group CEO PMI. This change was implemented effective January 1, 2026, and as a result PMI realigned its reportable segments accordingly. The four geographic segments have been replaced with three new reportable segments: International Smoke-Free, International Combustibles, and U.S. As of the first quarter of 2026, our reporting will reflect these changes. The company plans to disclose select historical financial information for the 2023 to 2025 period based on the new reportable segments before the end of the first quarter.

Conference Call

A conference call hosted by Jacek Olczak, Group CEO PMI, and Emmanuel Babeau, Group Chief Financial Officer, will be webcast at 9:00 a.m., Eastern Time, on February 6, 2026. The webcast can be accessed here.

Fourth-Quarter 2025 Operating Review

Net Revenues

(in millions)

Total PMI

Europe

SSEA, CIS & MEA

EA, AU & PMI GTR

Americas

2024

9,706

4,143

2,868

1,434

1,261

Price

285

158

240

(126)

Volume/Mix

(54)

Other

(3)

—

(1)

—

(2)

Acquisitions & Divestitures

(44)

—

Currency

345

287

(23)

2025

10,362

4,598

3,109

1,425

1,230

vs. Q4 2024

6.8%

11.0%

8.4%

(0.6)%

(2.5)%

Organic growth

3.7%

5.1%

6.5%

1.0%

(4.4)%

Operating Income

(in millions)

Total PMI

Europe

SSEA, CIS & MEA

EA, AU & PMI GTR

Americas

2024

3,259

1,750

806

574

129

Price

285

158

240

(126)

Volume/Mix

(46)

Cost/Other

(289)

(184)

(60)

(75)

Acquisitions & Divestitures

—

Currency

153

(71)

(57)

2025

3,373

1,910

941

514

vs. Q4 2024

3.5%

9.1%

16.7%

(10.5)%

(93.8)%

Adjustments *

(349)

(146)

(4)

(1)

(198)

2025 Adjusted OI

3,722

2,056

944

515

207

vs. Q4 2024

5.8%

14.5%

16.5%

(10.4)%

(38.9)%

Organic growth

4.5%

5.8%

25.3%

(0.5)%

(43.4)%

2024 Adjusted OI Margin

36.3%

43.3%

28.2%

40.1%

26.9%

2025 Adjusted OI Margin

35.9%

44.7%

30.4%

36.1%

16.8%

vs. Q4 2024

(0.4)pp

1.4pp

2.2pp

(4.0)pp

(10.1)pp

Organic growth

0.3pp

5.0pp

(0.6)pp

(11.0)pp

(*) For a list of adjusting items refer to additional information section of this release or Schedule 9 in Exhibit 99.2 to the Form 8-K dated February 6, 2026.

HTU & Cigarette Shipments

(m units)

Total PMI

Europe

SSEA, CIS & MEA

EA, AU & PMI GTR

Americas

Heated Tobacco Units

38,398

16,289

9,236

12,681

192

vs. Q4 2024

7.5%

7.2%

9.6%

6.2%

28.0%

Cigarettes

149,426

36,891

85,640

10,219

16,676

vs. Q4 2024

(2.2)%

(3.9)%

(0.2)%

(10.5)%

(2.9)%

Total

187,824

53,180

94,876

22,900

16,868

vs. Q4 2024

(0.4)%

(0.8)%

0.7%

(2.0)%

(2.6)%

Oral SFP Shipments

(m cans)

Total PMI

Europe

SSEA, CIS & MEA

EA, AU & PMI GTR

Americas

Nicotine Pouches

217.0

11.7

6.3

1.0

198.0

vs. Q4 2024

18.1%

(13.5)%

63.2%

(22.7)%

19.9%

Snus

51.9

48.5

—

2.9

0.5

vs. Q4 2024

(10.8)%

(15.6)%

—

(32.6)%

Moist Snuff

31.2

—

31.2

vs. Q4 2024

(2.5)%

—

(2.5)%

Other Oral SFP

0.5

—

vs. Q4 2024

(22.6)%

—

Total

300.5

60.7

6.3

3.9

229.7

vs. Q4 2024

9.5%

(15.3)%

63.2%

+100%

16.1%

Note: U.S. travel retail volumes of approximately 3.7m nicotine pouch cans recorded in Americas segment, financial impact recorded in EA, AU & PMI GTR segment. No meaningful U.S. travel retail volumes in prior year. Refer to additional information section of this release for shipments in pouch or pouch equivalents. "-" indicates volume below 0.1 million cans

Total PMI

Europe

SSEA, CIS & MEA

East Asia, Australia & PMI Global Travel Retail

Americas

Full-Year 2025 Operating Review

Net Revenues

(in millions)

Total PMI

Europe

SSEA, CIS & MEA

EA, AU & PMI GTR

Americas

2024

37,878

15,690

11,261

6,393

4,534

Price

1,536

805

836

(186)

Volume/Mix

920

258

(146)

211

597

Other

—

(13)

Acquisitions & Divestitures

(170)

—

Currency

461

528

(53)

(78)

2025

40,648

17,111

12,051

6,632

4,854

vs. FY 2024

7.3%

9.1%

7.0%

3.7%

7.1%

Organic growth

6.5%

6.8%

6.4%

4.6%

8.8%

Operating Income

(in millions)

Total PMI

Europe

SSEA, CIS & MEA

EA, AU & PMI GTR

Americas

2024

13,402

6,547

3,429

2,878

548

Price

1,536

805

836

(186)

Volume/Mix

1,084

127

186

224

547

Cost/Other

(1,371)

(710)

(326)

(366)

Acquisitions & Divestitures

—

Currency

154

340

(60)

(88)

(38)

2025

14,892

7,165

4,096

3,126

505

vs. FY 2024

11.1%

9.4%

19.5%

8.6%

(7.8)%

Adjustments *

(1,536)

(745)

(15)

(3)

(774)

2025 Adjusted OI

16,428

7,909

4,111

3,129

1,279

vs. FY 2024

11.8%

13.3%

17.7%

8.6%

(4.3)%

Organic growth

10.6%

8.5%

18.6%

11.7%

(1.4)%

2024 Adjusted OI Margin

38.8%

44.5%

31.0%

45.1%

29.5%

2025 Adjusted OI Margin

40.4%

46.2%

34.1%

47.2%

26.3%

vs. FY 2024

1.6pp

1.7pp

3.1pp

2.1pp

(3.2)pp

Organic growth

1.4pp

0.7pp

3.5pp

3.0pp

(2.8)pp

(*) For a list of adjusting items refer to additional information section of this release or Schedule 10 in Exhibit 99.2 to the Form 8-K dated February 6, 2026.

HTU & Cigarette Shipments

(m units)

Total PMI

Europe

SSEA, CIS & MEA

EA, AU & PMI GTR

Americas

Heated Tobacco Units

155,133

59,322

32,318

62,768

725

vs. FY 2024

11.0%

10.5%

13.1%

10.3%

16.6%

Cigarettes

607,367

153,758

347,293

45,709

60,607

vs. FY 2024

(1.5)%

(5.5)%

0.7%

(4.1)%

(1.7)%

Total

762,500

213,080

379,611

108,477

61,332

vs. FY 2024

0.8%

(1.5)%

1.7%

3.8%

(1.5)%

Oral SFP Shipments

(m cans)

Total PMI

Europe

SSEA, CIS & MEA

EA, AU & PMI GTR

Americas

Nicotine Pouches

879.6

54.2

22.9

4.7

797.9

vs. FY 2024

36.6%

11.0%

99.9%

99.2%

37.2%

Snus

227.9

212.0

—

13.4

2.4

vs. FY 2024

(4.9)%

(10.4)%

—

(18.1)%

Moist Snuff

129.8

—

129.8

vs. FY 2024

(3.5)%

—

(3.5)%

Other Oral SFP

2.6

—

vs. FY 2024

(22.9)%

(23.4)%

—

Total

1,240.0

268.8

22.9

18.1

930.2

vs. FY 2024

21.4%

(6.9)%

99.9%

+100%

29.4%

Note: U.S. travel retail volumes of approximately 11.9m nicotine pouch cans recorded in Americas segment, financial impact recorded in EA, AU & PMI GTR segment. No meaningful U.S. travel retail volumes in prior year. Refer to additional information section of this release for shipments in pouch or pouch equivalents. "-" indicates volume below 0.1 million cans

Total PMI

Europe

SSEA, CIS & MEA

East Asia, Australia & PMI Global Travel Retail

Americas

Additional Information

Fourth-Quarter

Full-Year

2025

2024

2025

2024

1.37

(0.38

)

Reported Diluted EPS

7.26

4.52

0.01

Restructuring charges

0.14

0.10

—

Impairment of goodwill and other intangibles

0.03

0.01

0.13

0.11

Amortization of intangibles

0.50

0.40

—

1.49

Impairment related to the RBH equity investment

—

1.49

—

0.05

Megapolis localization tax impact

—

0.05

(0.01

)

0.14

Income tax impact associated with Swedish Match AB financing

(0.25

)

0.14

—

Egypt sales tax charge

—

0.03

—

Loss on sale of Vectura Group

—

0.13

0.06

—

Loss on expected sale of consumer accessories and other businesses

0.06

—

Germany excise tax classification litigation charge

0.10

—

RBH (Canada) Plan Implementation, including dividend income, net

(0.10

)

—

Impairment of Wellness business related equity investment

0.09

—

0.14

0.13

Fair value adjustment for equity security investments

(0.18

)

(0.27

)

—

Tax items

(0.11

)

(0.03

)

1.70

1.55

Adjusted Diluted EPS

7.54

6.57

0.01

Less: Currency

0.04

1.69

1.55

Adjusted Diluted EPS, excluding Currency

7.50

6.57

Fourth-Quarter

Change

Fav./(Unfav.)

Variance

Fav./(Unfav.)

2025

2024

Total

Excl.

Curr. &

Acq./Div.

Total

Cur-

rency

Acq.

/ Div.

Price

Vol/

Mix

Cost/

Other

(in millions)

Net Revenues

$ 10,362

$ 9,706

6.8

3.7

656

345

(44

)

285

)

Cost of Sales (1)

(3,560

)

(3,423

)

(4.0

(1.0

(137

)

(131

)

—

(35

)

Marketing, Administration and Research Costs (2)

(3,429

)

(3,024

)

(13.4

(8.3

(405

)

(174

)

—

(251

)

Operating Income

$ 3,373

$ 3,259

3.5

2.2

114

285

(289

)

Restructuring charges

(12

)

+100

—

Amortization of intangibles

(257

)

(247

)

(4.0

(10

)

—

(10

)

Loss on sale of Vectura Group

—

)

+100

—

Loss on expected sale of consumer accessories and other businesses

(94

)

—

(94

)

—

(94

)

Adjusted Operating Income

$ 3,722

$ 3,519

5.8

4.5

203

285

(200

)

Adjusted Operating Income Margin

35.9

36.3

(0.4

)pp

0.3

(1) Includes $6 million in 2025 and $5 million in 2024 related to the special items below.

(2) Includes $343 million in 2025 and $255 million in 2024 related to the special items below.

Full-Year

Change

Fav./(Unfav.)

Variance

Fav./(Unfav.)

2025

2024

Total

Excl.

Curr. &

Acq./Div.

Total

Cur-

rency

Acq.

/ Div.

Price

Vol/

Mix

Cost/

Other

(in millions)

Net Revenues

$ 40,648

$ 37,878

7.3

6.5

2,770

461

(170

)

1,536

920

Cost of Sales (1)

(13,366

)

(13,329

)

(0.3

—

(37

)

(194

)

155

—

164

(162

)

Marketing, Administration and Research Costs (2)

(12,349

)

(11,147

)

(10.8

(10.7

(1,202

)

(113

)

102

—

(1,191

)

Impairment of Goodwill

(41

)

—

(41

)

—

(41

)

Operating Income

$ 14,892

$ 13,402

11.1

9.3

1,490

154

1,536

1,084

(1,371

)

Restructuring charges

(241

)

(180

)

(33.9

(61

)

—

(61

)

Impairment of goodwill and other intangibles

(41

)

(27

)

(51.9

-(100

(14

)

—

(40

)

Amortization of intangibles

(1,003

)

(835

)

(20.1

(23.7

(168

)

—

(198

)

Loss on sale of Vectura Group

—

(199

)

+100

199

—

199

Egypt sales tax charge

—

(45

)

+100

—

Germany excise tax classification litigation charge

(176

)

—

(176

)

—

(176

)

RBH (Canada) Plan implementation

—

Loss on expected sale of consumer accessories and other businesses

(94

)

—

(94

)

—

(94

)

Adjusted Operating Income

$ 16,428

$ 14,688

11.8

10.6

1,740

154

1,536

1,084

(1,065

)

Adjusted Operating Income Margin

40.4

38.8

1.6

1.4

(1) Includes $22 million in 2025 and $51 million in 2024 related to the special items below.

(2) Includes $1,473 million in 2025 and $1,235 million in 2024 related to the special items below.

Note: Acq. / Div. variances predominantly due to the sale of Vectura Group Ltd. announced in September 2024

Fourth-Quarter

Full-Year

2025

2024

Change (pp)

2025

2024

Change (pp)

Total International Market Share (1)

29.1%

29.2%

(0.1)

29.2%

29.0%

0.2

Cigarettes

23.1%

23.7%

(0.6)

23.4%

23.7%

(0.3)

HTU

6.1%

5.5%

0.6

5.8%

5.3%

0.5

Cigarette over Cigarette Market Share (2)

25.1%

25.6%

(0.5)

25.3%

25.5%

(0.2)

(1) Defined as PMI's cigarette and heated tobacco unit IMS volume as a percentage of total industry cigarette and heated tobacco unit sales volume, excluding China and the U.S., including cigarillos in Japan

(2) Defined as PMI's cigarette IMS volume as a percentage of total industry cigarette sales volume, excluding China and the U.S., including cigarillos in Japan

Note: Sum of share of market by product categories might not foot to total due to rounding.

Fourth-Quarter

Oral SFP Shipments

(m pouch or pouch equivalents) 4

Total PMI

Europe

SSEA, CIS & MEA

EA, AU & PMI GTR

Americas

Nicotine Pouches

3,341

240

111

2,970

vs. Q4 2024

17.2%

(13.8)%

59.1%

(23.4)%

19.9%

Snus

1,096

1,022

—

vs. Q4 2024

(11.0)%

(15.8)%

—

(32.6)%

Moist Snuff

523

—

523

vs. Q4 2024

(2.4)%

—

(2.4)%

Other Oral SFP

—

vs. Q4 2024

(23.6)%

—

Total

4,974

1,276

111

3,505

vs. Q4 2024

7.3%

(15.6)%

59.1%

+100%

15.7%

Note: U.S. travel retail volumes of approximately 56m nicotine pouches recorded in Americas segment, financial impact recorded in EA, AU & PMI GTR segment. No meaningful U.S. travel retail volumes in prior year. Refer to quarterly operating review section of this release for shipments in cans. "-" indicates volume below 1 million pouch or pouch equivalents

Full-Year

Oral SFP Shipments

(m pouch or pouch equivalents) 4

Total PMI

Europe

SSEA, CIS & MEA

EA, AU & PMI GTR

Americas

Nicotine Pouches

13,599

1,112

423

11,969

vs. FY 2024

36.0%

9.4%

98.4%

37.2%

Snus

4,813

4,467

—

288

vs. FY 2024

(5.5)%

(11.1)%

—

(18.1)%

Moist Snuff

2,182

—

2,182

vs. FY 2024

(3.5)%

—

(3.5)%

Other Oral SFP

—

vs. FY 2024

(20.6)%

(21.1)%

—

Total

20,668

5,652

423

383

14,209

vs. FY 2024

18.5%

(7.8)%

98.4%

+100%

28.6%

Note: U.S. travel retail volumes of approximately 178m nicotine pouches recorded in Americas segment, financial impact recorded in EA, AU & PMI GTR segment. No meaningful U.S. travel retail volumes in prior year. Refer to full-year operating review section of this release for shipments in cans. "-" indicates volume below 1 million pouch or pouch equivalents

4 Oral smoke-free products conversion: (i) nicotine pouches (units): 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.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025 PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 41.5% of PMI’s full year 2025 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and goals and other forward-looking statements, including statements regarding expected financial or operational performance; capital allocation plans; investment strategies; regulatory outcomes; market expectations; business plans and strategies. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI's business risks include: marketing and regulatory restrictions that could reduce our competitiveness, disrupt our SFP commercialization efforts, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; excise tax increases and discriminatory tax structures; health concerns relating to the use of tobacco and other nicotine-containing products; litigation related to tobacco and/or nicotine products and intellectual property rights; intense competition; inability to anticipate changes in adult consumer preferences; use and reliance on third-parties; the adverse effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; geopolitical instability affecting international trade; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; continued decline of tax-paid cigarettes; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, sustained periods of elevated inflation, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; disruptions in the credit markets or changes to its credit ratings; recent and potential future tariffs imposed by the U.S. and other countries; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as product components for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful, in key markets or systemically, in its efforts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity; if there are prolonged disruptions of facilities used to produce its products; if it is unable to enter new markets or improve its margins through increased prices and productivity gains; if other market participants are more successful in their SFP commercialization efforts; if it is unable to attract and retain the best global talent; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2024, Quarterly Report on Form 10-Q for the third quarter ended September 30, 2025, and the Form 10-K for the fourth quarter and year ended December 31, 2025, which will be filed later today. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

Non-GAAP Measures, Glossary and Explanatory Notes

Reconciliations of non-GAAP measures in this release to the most directly comparable U.S. GAAP measures can be found in Exhibit 99.2 to the Form 8-K dated February 6, 2026, and here. A glossary of key terms, definitions and explanatory notes is available in the aforementioned Exhibit 99.2 and on the same webpage, where additional financial schedules, as well as adjustments and other calculations have also been made available.

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.

Non-GAAP measures used in this release should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP.

Appendix 1

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Key Market Data

Fourth-Quarter

Market

Cigarette & HTU Industry Vol. (bn units)

PMI Shipments (bn units)

PMI Volume Share (2) (%)

Cigarette & HTU

Cigarette

HTU

Cigarette & HTU

HTU

2025

2024

% Change

2025

2024

% Change

2025

2024

% Change

2025

2024

% Change

2025

2024

pp Change

2025

2024

pp Change

Total (1)(2)

656.9

656.5

0.1

187.8

188.5

(0.4)

149.4

152.8

(2.2)

38.4

35.7

7.5

29.1

29.2

(0.1)

6.1

5.5

0.6

Europe

France

5.7

6.3

(9.4)

2.4

1.7

2.4

2.1

—

40.7

41.8

(1.1)

0.5

0.6

(0.1)

Germany (3)

16.5

16.2

1.7

6.7

6.6

1.3

5.4

(1.3)

1.3

1.1

13.5

37.4

38.4

(1.0)

7.7

6.6

1.1

Italy (3)

18.1

17.9

1.1

10.7

10.1

6.1

6.0

6.4

(5.4)

4.7

3.7

25.7

53.9

53.1

0.8

20.1

16.5

3.6

Poland (3)

11.5

13.6

(15.4)

5.4

6.2

(12.5)

4.2

4.8

(11.9)

1.2

1.4

(14.4)

46.8

45.5

1.3

10.9

9.7

1.2

Spain

10.8

11.1

(2.4)

3.2

2.8

14.3

2.9

2.5

16.7

0.4

(0.8)

30.1

29.6

0.5

3.8

3.5

0.3

SSEA, CIS & MEA

Egypt

23.1

22.5

2.5

6.5

5.4

21.2

6.1

4.9

24.1

0.4

0.5

(10.5)

29.1

24.5

4.6

1.8

1.7

0.1

Indonesia (4)

66.4

65.5

1.4

20.0

20.3

(1.6)

19.5

19.9

(1.9)

0.4

17.1

30.1

31.0

(0.9)

0.6

—

Philippines

11.8

11.2

4.7

5.5

5.3

5.4

5.2

4.4

0.1

61.0

47.0

46.8

0.2

1.1

0.7

0.4

Russia

56.3

54.8

2.9

16.7

18.0

(7.1)

10.9

12.5

(12.7)

5.8

5.5

5.7

31.1

32.9

(1.8)

9.8

8.7

1.1

Turkey

40.3

38.6

4.6

18.8

20.4

(7.9)

18.8

20.4

(7.9)

—

46.4

52.9

(6.5)

—

EA, AU & PMI GTR

Australia

0.5

1.1

(60.6)

0.2

0.4

(50.3)

0.2

0.4

(50.3)

—

37.1

31.3

5.8

—

Japan (2)(3)

38.5

38.8

(1.0)

13.3

13.7

(3.0)

3.4

3.9

(12.1)

9.8

0.7

43.3

41.9

1.4

32.6

30.6

2.0

South Korea

16.2

17.6

(8.0)

3.3

3.4

(2.3)

1.7

2.0

(11.8)

1.6

1.4

10.5

20.7

19.5

1.2

9.9

8.2

1.7

Americas

Argentina

6.9

7.2

(4.0)

4.4

4.5

(2.8)

4.4

4.5

(2.8)

—

63.3

62.5

0.8

—

Mexico

9.7

9.6

0.8

5.6

—

5.5

(0.8)

0.1

82.3

57.8

58.2

(0.4)

1.1

0.6

0.5

(1) Market share estimates are calculated using IMS data, unless otherwise stated. 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.

(2) Total industry and volume share estimates include cigarillos in Japan

(3) PMI market share reflects estimated adjusted IMS volume share (see Glossary for definition); Total Market is based on reported IMS

(4) 2025 includes 2.3 billion units and 2024 includes 0.6 billion units of cigarette shipment volume under an arrangement where PMI acts as brand management and fulfilment services agent

Note: % change for Total Market and PMI shipments is computed based on millions of units. "-" indicates volume below 50 million units and market share below 0.1%

Appendix 2

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Key Market Data

Full-Year

Market

Cigarette & HTU Industry Vol. (bn units)

PMI Shipments (bn units)

PMI Volume Share (2) (%)

Cigarette & HTU

Cigarette

HTU

Cigarette & HTU

HTU

2025

2024

% Change

2025

2024

% Change

2025

2024

% Change

2025

2024

% Change

2025

2024

pp Change

2025

2024

pp Change

Total (1)(2)

2,586.9

2,596.0

(0.4)

762.5

756.6

0.8

607.4

616.8

(1.5)

155.1

139.7

11.0

29.2

29.0

0.2

5.8

5.3

0.5

Europe

France

23.8

26.1

(8.8)

9.9

10.7

(7.9)

9.7

10.5

(7.6)

0.1

0.2

(29.6)

40.3

41.2

(0.9)

0.5

0.6

(0.1)

Germany (3)

69.3

69.2

0.1

26.2

26.7

(2.0)

21.3

22.4

(5.1)

4.9

4.3

14.6

37.5

38.6

(1.1)

7.2

6.2

1.0

Italy (3)

73.9

73.6

0.4

40.3

39.1

3.1

25.7

27.3

(5.9)

14.6

11.8

23.7

53.6

—

18.6

16.9

1.7

Poland (3)

51.0

58.0

(12.1)

23.2

25.6

(9.4)

18.2

20.1

(9.9)

5.0

5.4

(7.7)

45.3

43.8

1.5

10.0

9.2

0.8

Spain

43.6

44.4

(1.7)

13.3

12.7

4.9

11.9

11.4

4.1

1.4

1.3

11.9

29.6

29.3

0.3

3.4

2.9

0.5

SSEA, CIS & MEA

Egypt

87.3

82.8

5.5

26.0

23.9

8.9

24.6

22.3

10.1

1.4

1.6

(7.5)

30.0

28.8

1.2

1.9

1.8

0.1

Indonesia (4)

258.7

265.2

(2.4)

79.4

80.8

(1.8)

77.9

79.6

(2.2)

1.5

1.2

23.2

30.7

30.5

0.2

0.6

0.5

0.1

Philippines

46.4

44.9

3.4

22.0

21.1

4.3

21.5

20.8

3.6

0.5

0.3

58.1

47.3

46.9

0.4

1.0

0.7

0.3

Russia

220.6

216.5

1.9

69.8

69.9

(0.1)

49.5

51.4

(3.8)

20.3

18.5

9.9

31.7

32.3

(0.6)

9.3

8.6

0.7

Turkey

160.2

150.5

6.4

74.3

78.2

(4.9)

74.3

78.2

(4.9)

—

46.4

52.0

(5.6)

—

EA, AU & PMI GTR

Australia

2.8

5.1

(45.7)

1.0

1.8

(45.2)

1.0

1.8

(45.2)

—

35.4

34.8

0.6

—

Japan (2)(3)

150.6

151.1

(0.3)

67.8

64.8

4.7

15.9

16.5

(3.8)

52.0

48.3

7.5

43.0

41.4

1.6

32.1

29.9

2.2

South Korea

68.0

70.5

(3.5)

14.0

(0.1)

7.5

8.3

(9.3)

6.5

5.7

13.2

20.6

19.9

0.7

9.5

8.1

1.4

Americas

Argentina

26.8

26.4

1.8

17.0

16.4

4.1

17.0

16.4

4.1

—

63.5

62.1

1.4

—

Mexico

30.5

31.6

(3.6)

17.6

18.5

(4.8)

17.3

18.3

(5.3)

0.3

0.2

43.2

57.8

58.5

(0.7)

1.0

0.7

0.3

(2) Total industry and volume share estimates include cigarillos in Japan

(3) PMI market share reflects estimated adjusted IMS volume share (see Glossary for definition); Total Market is based on reported IMS

(4) 2025 includes 8.7 billion units and 2024 includes 0.6 billion units of cigarette shipment volume under an arrangement where PMI acts as brand management and fulfilment services agent

Note: % change for Total Market and PMI shipments is computed based on millions of units. "-" indicates volume below 50 million units and market share below 0.1%