Philip Morris (NYSE: PM) outlines 2026-28 smoke-free growth and EPS goals
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Philip Morris International Inc. furnished an investor presentation from the CAGNY conference, outlining its strategy to become predominantly smoke-free and its financial targets. Smoke-free products generated
The company reported 2025 adjusted net revenues up 7.9% from 2024 on an organic basis and strong operating income growth, with 2020‑2025 adjusted operating income rising from
For 2026‑2028, Philip Morris targets a
Positive
- None.
Negative
- None.
Insights
PMI reinforces its smoke-free pivot with solid growth and ambitious 2026‑28 targets.
Philip Morris International shows a clear shift toward smoke-free products, which reached
Adjusted operating income grew from
The company forecasts roughly
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 18, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||||||||
Registrant's telephone number, including area code: (203 ) 905-2410
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | ||||
| Item 7.01. | Regulation FD Disclosure. | ||||
On February 18, 2026, Philip Morris International Inc. ("PMI") hosted a live audio webcast at the Consumer Analyst Group of New York Conference where Group CEO PMI, Jacek Olczak, and Group Chief Financial Officer, Emmanuel Babeau, addressed investors. In connection with the presentation, PMI is furnishing to the Securities and Exchange Commission the presentation slides, dated February 18, 2026, attached as exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference to this Item 7.01.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 7.01 of this Current Report on Form 8-K shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in such filing or document.
| Item 9.01. | Financial Statements and Exhibits. | ||||
| (d) | Exhibits. | ||||
| 99.1 | Philip Morris International Inc. Presentation Slides, dated February 18, 2026 (furnished pursuant to Item 7.01). | ||||
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document and contained in Exhibit 101) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PHILIP MORRIS INTERNATIONAL INC. | ||||||||
| By: | /s/ DARLENE QUASHIE HENRY | |||||||
| Name: | Darlene Quashie Henry | |||||||
| Title: | Vice President, Associate General Counsel & Corporate Secretary | |||||||
Date: February 18, 2026
Championing a Smoke-Free World CAGNY Conference February 18, 2026 Jacek Olczak, Group CEO PMI Emmanuel Babeau, Group CFO PMI Introduction • A glossary of terms as well as adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures for non-GAAP financial measures cited in this presentation are available on our Investor Relations website with additional non-GAAP reconciliations available at the end of this presentation 2 Exhibit 99.1
Forward-Looking and Cautionary Statements • This presentation 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, 2025. 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 • References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., including its subsidiaries 3 PMI Executive Team Here Today 4 Group Chief Legal Officer Yann Guérin CEO PMI International Fred De Wilde Jacek Olczak Group CEO PMI Emmanuel Babeau Group CFO PMI Chief Global Growth Officer Stefano Volpetti CEO PMI U.S. Stacey Kennedy President Europe Region Massimo Andolina
• Leading Industry Transformation, Evolution of Operating Environment • The Multicategory Consumer • Delivering Superior Returns to Shareholders 2 20 44 64 73 95 106 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Smoke-Free Reaching $17 billion Top-Line & 106 Markets 6 Source: PMI Financials or estimates Smoke-Free Markets (#) Annual Smoke-Free Net Revenues ($ billion) ~$17bn
Becoming Substantially Smoke-Free By Net Revenues 63.6% 15.1% 47.5% 55.4% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 7(a) Smoke-free represents Smoke-Free Business. Smoke-free business also includes wellness products, as well as consumer accessories, such as lighters and matches. For further information, please see Appendix and Reconciliation of non-GAAP Measures. Source: PMI Financials or estimates Smoke-Free Net Revenues(a) (% of Total Regional Adj. Net Revenues) 41.5% Total PMI 4345433729241562-- 27232517106431-- 863-------- Markets, # (FY) >30% >50% >75% 50% FY’25 EA, AU & PMI GTR Europe Americas SSEA, CIS & MEA 3 Regions >50% >50% Q4’25 Europe 75% of PMI adj. OI, Q4’25 3 Regions >50 Becoming Substantially Smoke-Free By Net Revenues 64% 55% 47% 15% 8 (a) Smoke-free represents Smoke-Free Business. (b) Base includes HTUs and cigarettes. (c) Based on Greater Taipei Nielsen data. Source: PMI Financials or estimates FY’25 Smoke-Free Net Revenues(a) (% of Total PMI Net Revenues) PMI EA, AU & PMI GTR EUROPE SSEA, CIS & MEA AMERICAS 41.5% Markets >75% Markets >50% 62% Top-5 OI Markets Markets >30%>50% Q4’25 PMI HTU Offtake Shares(b) 5.0% 7.2% Q4'24 Q4'25 4.5% 6.3% Q4'24 Q4'25 6.1% 7.7% Q4'24 Q4'25 8.8% 9.5% Q4'24 Q4'25 Mexico CityRiyadh Urban Jakarta Cairo When accessible, SFPs perform well in Emerging Markets ~6% Dec’25 Taipei(c)
856 821 782 705 786 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Transformed From Decline to Growth in Total Volumes 9(a) Volumes for cigarettes, HTUs, Oral SFPs (excl. snuff, snuff leaf and U.S. chew) and e-vapor in equivalent units. (b) Based on 106 SFP markets as of December 2025. Note: CC refers to combustible cigarettes. Total may not foot due to rounding. Source: PMI Financials or estimates ~2% CAGR 2020-25~(2)% CAGR 2014-19 CC: (4)% SFP: >200% CC: (0.7)% SFP: +19% +81bn +103bn (67)bn +45bn SFP: CC (SFP markets(b)): CC (non-SFP markets(b)): Total PMI Volumes(a) (Shipments, bn units) +ve 2026-28 Target Volume CAGR SFPs Accelerate Combustible Industry Declines 10 -5.4% 4.3% 0.2% -3.7% 1.1% 0.1% -0.6% -7.5% -3.0% -2.6% -2.3% -0.1% -3.1% -3.1% 2020 2021 2022 2023 2024 2025 CAGR 2020-'25 (a) Excluding China & U.S. Note: SFP markets defined as markets with PMI SFP SoM >2% in 2025. (b) Where Smoke free PMI products are not available either due to regulatory, fiscal or other reasons. Source: PMI Financials or estimates Cigarette Industry(a) (change vs. PY, %) +3% FY’25 Mkts where SFPs not permitted(b)Non-SFP Markets SFP Markets
11 Current evidence suggests nicotine itself confers little risk to health, though acute exposure at typical levels from consumer nicotine products can result in addiction, short-term enhanced cognitive effects, elevated heart rate and blood pressure. Royal College of Physicians, accessed April 2024 It’s (Nicotine) clearly addictive. It may have other health benefits. We have an NIH study that shows […] it reduces onset of Alzheimer’s and of dementia. And so, it’s infinitely preferential to smoking. I think that the nicotine pouches are probably the safest way to consume nicotine.” Robert F. Kennedy Jr., U.S. Secretary of Health & Human Services, 2025 Tax settings should be sought that take increased account of the risk profile of individual products, i.e., the aim is to set the tax (price) of alternative tobacco and nicotine products appropriately in relation to the price of tobacco products intended for smoking, and thus economically motivate smokers to switch to less risky alternatives to smoking. Czechia: The Action Plan Addiction Policy 2023-2025 “ “As we look toward the future, I want to be clear about CTP's direction. Our recent actions, the Pouch Pilot program, product authorizations, accelerated reduction in the PMTA backlog, enforcement activities and education and initiatives. They all form a cohesive framework based on tobacco harm reduction principles balanced with stringent youth protection.” Bret Koplow, Acting Director, Center for Tobacco Products FDA, October 2025 Nicotine is addictive but carries few direct risks to health on its own. It can be used in non-tobacco products such as NRT and vapes and is an effective aid to quitting smoking. However, it should not be used by people who do not already smoke. Ash UK (action on smoking and health), November 2025 Evolving Understanding of Nicotine & Tobacco Harm Reduction Evidence continues to support the modified exposure claim that “Scientific studies have shown that switching completely from conventional cigarettes to the IQOS system significantly reduces your body’s exposure to harmful or potentially harmful chemicals.” FDA, Meeting of the Tobacco Products Scientific Advisory Committee Modified Risk Tobacco Products Renewal Applications for Philip Morris Products S.A., October 2025 “The evidence suggests the proposed modified risk claim “Using ZYN instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis” is scientifically accurate. FDA, Meeting of the Tobacco Products Scientific Advisory Committee Modified Risk Tobacco Products Application by Swedish Match, January 2026 Increasing Regulatory & Fiscal Differentiation of SFPs 12 Regulatory Policy (Jan’26) (a) Include PMI non-launch markets where information is available. Note: Markets are PMI launched markets only unless otherwise stated. Dedicated excise categories in launch markets as of January 2026, including laws with effective date later in the year, e.g. UK effective October 1st 2026. Source: PMI Estimates 43 Markets(a) (+21 vs. 2023) Established (voluntary or mandatory) product standards on quality, safety and performance for at least one SFP 85 Markets(a) (+34 vs. 2023) Lifted a regulatory ban for at least one SFP or proceeded with dedicated/improved regulatory framework Examples: Dedicated excise tax category for Heated Tobacco Products 59 Markets (+14 vs. 2023) 32 Markets (+21 vs. 2023) Dedicated excise category for e-vapor 26 Markets (+21 vs. 2023) Dedicated excise category for Modern Oral 26 Markets Multi-year tax plans covering at least one SFP Over 30 markets recognized or reiterated support for THR as a guiding principle for national Fiscal or Regulatory legislations Fiscal Policy (Jan’26) (All new or renewed since 2023)
However, Access Remains Blocked in Certain Key Markets 13 • High volume cigarette markets: >440bn sticks Source: PMI Financials or estimates • Smaller but important markets:⎼ Hong Kong, Singapore, Australia • Restricted on certain categories:⎼ Examples: Germany, Belgium, Canada, Ireland, Netherlands, France India Turkey Brazil Vietnam • Leading Industry Transformation, Evolution of Operating Environment • The Multicategory Consumer • Delivering Superior Returns to Shareholders
81% 6% 7% 4% 1% 1% SFP Growth Opportunity Remains Vast 15 E-Vapor(a) Nicotine Pouch HTUs 2025 Global Industry Volumes (est. equivalent units, excl. China)• Total nicotine market close to stable, continued migration to smoke-free products • Changing consumer preferences generate incremental growth opportunities:⎼ IQOS, ZYN & VEEV well-positioned for SFP poly-use ⎼ Multicategory approach to innovation and commercialization Note: Excludes illicit cigarettes and certain traditional product categories. (a) Includes estimated size of open tank systems using 1ml equivalent to 10 units for all e-vapor. Source: PMI Financials or estimates Combustible (2%) 22-25 CAGR (%) +12% +5% +54% Trad. Oral (3)% Illicit E-Vapor +18% Total SFPs 19% +10% 16 Growing SFP Demand & Use Leads Volume Growth SFP Share of Nicotine Industry Volumes and Use (Global, excl. China) (a) Past 7 day use, based on consumer panel data from 64 markets (incl. U.S., excl. China) in Q3’25, Q3’24, Q3’23. Source: PMI Market Research, PMI Financials or estimates 16% 18% 19% 27% 30% 32% 2023 2024 2025 SFP % of total nicotine industry volumes SFP use among Legal-Age Nicotine Consumers (LANC)(a)
Declining Exclusive Smokers, Dual Use Precedes Full Conversion 17 SFP Share of Nicotine Industry Volumes and Use (a) Past 7 day use based on consumer panel data in Q3’25, Q3’24, Q3’23. International based on 63 international markets (excl. U.S. and China). (b) Based on the 56 markets of these 63 where PMI is present with SFPs. Source: PMI Market Research, PMI Financials or estimates Exclusive Cigarette Use (Past 7 days use among LANC, %) 13% 15% 16%23% 26% 28% 2023 2024 2025 SFP % on total nicotine industry volumes SFP use among LANC(a) 44% 48% 53%53% 58% 62% 2023 2024 2025 U.S. International 47% 42% 38% 72% 70% 68% 2023 2024 2025 U.S. International (only SFP markets)(b) Faster Full Conversion Where HnB is Present 18(a) Past 7 day use based on consumer panel data in Q3’25. International based on 63 international markets (excl. U.S. and China). Source: PMI Market Research, PMI Financials or estimates SFP Industry User Breakdown (% of SFP Users)(a) ~55% ~41% ~4% SFP Exclusive SFP Dual & Poly with Cigarettes SFP Poly-User (2+ SFP Categories) ~27% ~67% ~6% SFP Exclusive SFP Dual & Poly with Cigarettes SFP Poly-User (2+ SFP Categories) International U.S.
Nicotine Pouches Have Specific Role in Switching Smokers 19 (a) Average pouches per day, based on consumer panel data as of Q4’25. Note: Estimates of daily consumption based on a number of simplifying assumptions and do not represent actual nicotine uptake by SFP users, which is a function of a number of factors, including, but not limited to type of product used, duration of use, and patterns of use. Source: PMI Market Research • First-use of nicotine pouches usually situational, change in ritual from inhalable to oral • Share of nicotine occasions rises on average over time, aiding greater full smoke-free conversion • Poly-use with other SFPs is higher than e-vapor and HnB, which has highest exclusive use • Exclusive oral users small in number but growing rapidly • Growth tailwind for the category over time 5.2 6.8 7.4 <1 year 1-2 years >3 years U.S. Nicotine Pouch Use by Tenure (average pouches/day) ~12 Sweden Oral(a) >2x vs. <1 year Exclusive Use Multicategory Accelerating Smoke-Free Category Growth 20 1 SFP Markets Multicategory Markets (52) ~10% (a) Including HTUs, e-vapor pods and disposables, nicotine pouches. Note: SFP markets defined as markets with PMI SFP SoM >2% in 2025. Multicategory markets as of Dec’25. Excluding Poland, due to e-vapor industry regulatory changes. Source: PMI Financials or estimates Unlocking growth in markets with low PMI CC presence (e.g., Taiwan, Romania, South Africa) >15% FY’25 PMI SFP IMS Growth(a)
>7.6k IQOS Stores & Partners Includes Flagship stores, small, large & temporary boutiques as of Dec 2025 (ex. Russia) 10% vs. PY >550m Interactions at Experiential Touchpoints Includes our stores, service centers, website and opened emails in 2025 10% vs. PY >22k Sales & Service Staff at Experiential Touchpoints Includes staff at our stores, service centers, coaches. Dec 2025 ~83% Consumer Registration Rate Includes legal age IQOS users who have purchased a device & provided valid contact details as of Dec 2025 (ex. Japan) IQOS Infrastructure Supports Multicategory Growth ~1.5m Points of sale for PMI SFPs As of Dec’25 Source: PMI Financials or estimates 22 (a) Excluding China. PMI share of category IMS in markets where present in each category. Nb. PMI does not sell cigarettes in the U.S., hence cigarette share is international only. (b) In equivalent units. Excludes open tank e-vapor systems and traditional oral products. (c) In pouches. (d) In pods. (e) Reflects estimated IMS growth in categories where PMI is present across 106 smoke-free markets. Excl. illicit products, e-vapor open tanks. Source: PMI Financials or estimates 2025 PMI Category Volume Share(a) Strong Position in SFPs, Outgrowing Industry ~24% ~65% ~76% ~40% ~12% Cigarettes Heat-Not- Burn Nicotine Pouches(c) E-Vapor Closed Pods(d) Smoke-Free Products(b) 2025 SFP Volume Growth (Change vs. PY(e)) >9% >12% Industry PMI >70% Share of growth
Continuous Innovation Across SFPs, Expanding Technologies 23 Nicotine Levels IQOS ILUMA i (Induction heating) VEEV One (Ceramic Heating) BONDS (External heating) Future Innovations Moist Dry VEEV InPrime (Induction Heating) 1.5 mg 3–4 mg 6 mg 9–10 mg 11 mg >11 mg Resilient Combustible Leadership Supports Smoke-Free Success 24 (a) Pricing variance is based on adjusted net revenues (b) Excluding China and the U.S. and including cigarillos in Japan. Source: PMI Financials or estimates 5.5 8.7 7.6 FY'21-23 Average FY'24 FY'25 Combustible Pricing (% growth vs. PY)(a) Marlboro Cigarette Category Share(b) (%) 9.5% 9.8% 9.8% 10.2% 10.7% 2021 2022 2023 2024 2025 11.0% Q4’25 Marlboro Record high share
• Leading Industry Transformation, Evolution of Operating Environment • The Multicategory Consumer • Delivering Superior Returns to Shareholders Continuation of Best-in-Class Growth Targeted for 2026-28 26 6-8% Net Revenue Organic CAGR 9-11% Adjusted Diluted EPS Currency-Neutral CAGR(b) Positive Total Shipment Volume CAGR(a) 8-10% Operating Income Organic CAGR (a) Shipment volume includes cigarettes and SFPs. (b) At current corporate income tax rates, excluding share repurchases. Note: Growth rates presented on an organic basis reflect currency-neutral adjusted results, excluding acquisitions and divestitures. Source: PMI Financials or estimates High-SD to Low-Teens Total SFP Volume CAGR
109 125 140 155 2 3 14 17 21 112 140 159 179 2022 2023 2024 2025 Multicategory Approach Driving SFP Volume Growth 27(a) Volumes shown in pouches or pouch equivalents, excluding snuff, snuff leaf and U.S. chew. (b) E-Vapor volumes shown in stick equivalent units. (c) Pro-forma includes 2022 Swedish Match volumes. Total may not foot due to rounding. Source: PMI Financials or estimates Change vs. PY, bn units +19+18+16 +20 Pro-forma(c) HTUs E-Vapor(b) Oral SFP(a) SFP Volumes(a) (Shipments, bn equivalent units) Strong and Sustainable Net Revenue Drivers 28 (a) Smoke-free mix represents the impact of an increased proportion of smoke-free products at higher net-revenue per unit and is calculated at total PMI level, excluding the impact from market mix. It also includes the impact from changes in device volumes and the growing weight of the U.S. smoke-free business. 5y Net Revenue CAGR includes immaterial impact from Indonesia CC business model change. Total may not foot due to rounding. Source: PMI Financials or estimates 1.8% 1.4% (1.2)% (1.1)% 4.1% 4.1% 3.2% 3.5% (1.4)% 5y CAGR 2025 Volume Organic Net Revenue 6.5%7.8% Net Revenue Drivers (Organic Variance vs. PY) CC Geo Mix & Other Indonesia CC business model change Pricing • Sustained positive volumes • Consistent strong pricing across categories • Smoke-free mix from improving portfolio quality • Higher-growth, higher-quality business Smoke-Free Mix(a)
Substantial Mix Benefit from Transition to Smoke-Free 29 Cigarettes Smoke-Free Products 2025 Net Revenue Per Unit (SFPs in equivalent units) 2025 Adj. Gross Profit Per Unit (SFPs in equivalent units) ~2.5 1 Cigarettes Smoke-Free Products ~2.6 1 Source: PMI Financials or estimates Smoke-Free Increasingly Profitable As Top-Line Grows 30(a) Smoke-free represents Smoke-Free Business. For further information, please see Appendix and Reconciliation of non-GAAP Measures. Note: Adjusted gross profit margin calculated based on adjusted gross profit, divided by adjusted net revenues. Source: PMI Financials or estimates Adj. Gross Profit Margin (Smoke-Free(a) vs. Combustibles) Smoke-Free Adj. Gross Profit(a) (% of Total PMI Adj. Gross Profit) 21.6% 28.9% 29.9% 36.7% 39.7% 42.9% 2020 2021 2022 2023 2024 2025 ~2x vs. 2020 63.4% 63.9% 65.5%64.2% 66.6% 69.5% 2023 2024 2025 Combustibles Smoke-Free +4pp
OI Growth & Margin Expansion Built into Growth Model 31 38.5% 37.7% 40.6% 40.3% 39.8% 2020 2022 2023 2024 2025 Source: PMI Financials or estimates 9.4% 10.6% CAGR 2020-'25 FY'25 Organic OI Growth (Change, %) 60 140 Avg. 2020-'25 FY'25 Organic OI Margin Growth (Change, bps) Adj. SG&A (% of Total PMI Adj. Gross Profit) ~70% of Tot. Commercial Costs, FY’25 SFP 5.8% 10.1% 15.6% 14.2% (0.4)% (2.4)% 9.3% 14.8% (a) 2020 Adjusted Diluted EPS, excluding intangible amortization and the net earnings attributable to RBH from January 1, 2019 to March 21, 2019, was $5.21, representing a 1.0% increase in USD versus the prior year and a 7.2% increase on a currency-neutral basis. (b) See Q4’25 Earnings Release from Feb 6th 2026; at then prevailing exchange rates. (c) At current corporate income tax rates, excluding share repurchases. Source: PMI Financials or estimates Converting Currency-Neutral Growth Into USD 32 Adj. Diluted EPS ($) 5.17 5.98 6.57 7.54 2020 2022 2024 2025 2026 Est. Currency neutral variance vs. PY Currency Impact, ($) +0.12 (0.77) (0.38) 8.38 – 8.53 +0.04 11.1 - 13.1%(a) 7.5 - 9.5% USD variance vs. PY +0.27(b) (a) Adj. Dil. EPS Currency-Neutral 9-11% 2026-’28 CAGR Target(c)
Highly Cash Generative With Strong Balance Sheet 33 Organic Growth • Reinvest in innovation and growth of smoke-free portfolio:⎼ Expect average annual 2026-28 capital expenditures of $1.3-1.5 billion Operating Cash Flow • Expect robust 2026-28 Operating Cash Flow of ~$45bn, at prevailing exchange rates, following ~$34bn over last 3 years, • Target close to 2.0x net debt to adjusted EBITDA at end-26, at prevailing exchange ratesDeleveraging Dividends • Steadfast commitment to progressive dividend policy • Strong cash conversion, comparing very favorably against our CPG peers • ROIC >50% on average over the last 10 years Capital Efficiency Source: PMI Financials or estimates Sustainable Performance with Superior Shareholder Returns 34 Total Shareholder Return ($) (a) Includes PMI, Altria, BAT, Imperial Brands and Japan Tobacco. (b) Based on XLP Index. Note: Exchange rates are as of February 13, 2025 and February 12, 2026 for 1 year comparison, February 13, 2023 and February 12, 2026 for 3 years comparison, February 13, 2021 and February 12, 2026 for 5 years comparison, and March 28, 2008 and February 12, 2026 for Since Spin comparison. TSR including dividend reinvestment. Chart not to scale. Source: Bloomberg 1 Year - Feb 13, 2025 – Feb 12, 2026 13% 13% 31% 40% S&P 500 U.S. Staples(b) PMI MSCI World Tobacco Index(a) 3 Years - Feb 13, 2023 – Feb 12, 2026 55% 87% 162% 180% S&P 500 U.S. Staples(b) PMI MSCI World Tobacco Index(a) 5 Years - Feb 13, 2021 – Feb 12, 2026 Since Spin - Mar 28, 2008 – Feb 12, 2026 417% 599% 631% 761% U.S. Staples(b) MSCI World Tobacco Index(a) S&P 500 PMI 31% 72% 103% 109% S&P 500 U.S. Staples(b) PMI MSCI World Tobacco Index(a)
Championing a Smoke-Free World CAGNY Conference February 18, 2026 Have you downloaded the new PMI Investor Relations App yet? The free IR App is available to download at the Apple App Store for iOS devices and at Google Play for Android mobile devices iOS Download Android Download Championing a Smoke-Free World Appendix and Reconciliation of Non-GAAP Measures
SFP Growth Built on Strong Lead Indicators 37 Spain 1.3% 2.5% 3.6%2.9% 7.4% 10.6% Q4, 2021 Q4, 2023 Q4, 2025 Italy 12.7% 17.2% 20.1%21.6% 28.2% 32.5% Q4, 2021 Q4, 2023 Q4, 2025 Germany 3.5% 5.6% 7.7% 8.6% 10.8% 15.0% Q4, 2021 Q4, 2023 Q4, 2025 Note: Chart not to scale. 2021 National shares based on reported IMS. Key Cities selected are respectively: Athens, Rome, Tokyo, Munich, Seoul and Madrid. Source: PMI Financials or estimates Key City Offtake SharePMI HTU Adj. National Share Greece 15.8% 20.8% 26.8%22.3% 29.4% 35.9% Q4, 2021 Q4, 2023 Q4, 2025 Japan 21.6% 27.5% 32.6% 27.2% 34.1% 38.5% Q4, 2021 Q4, 2023 Q4, 2025 PMI HTU Adjusted National & Key City Offtake Share of Total Cigarette and HTU Market South Korea 6.8% 7.4% 9.5%9.7% 12.1% 13.6% Q4, 2021 Q4, 2023 Q4, 2025 38 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Net Revenues to Net Revenues, excluding Indonesia Combustible business model change, Currency and Acquisition / Divestitures ($ in millions) / (Unaudited) Net Revenues Currency Net Revenues excluding Currency Acqui-sitions / Divestitures Net Revenues excl. Currency & Acquisitions / Divestitures Indonesia Combustible business model change Adj. Net Revenues excl. Indonesia Combustible business model change, currency & Acquisitions / Divestitures Net Revenues Total Excluding Currency Excl. Currency & Acquisitions / Divestitures Excl. Indonesia Combustible business model change, currency & Acquisitions / Divestitures 2025 2024 $ 10,362 $ 345 $ 10,017 $ (44) $ 10,061 $ (92) $ 10,153 Total PMI $ 9,706 6.8% 3.2% 3.7% 4.6% 2025 2024 $ 40,648 $ 461 $ 40,187 $ (170) $ 40,357 $ (500) $ 40,857 Total PMI $ 37,878 7.3% 6.1% 6.5% 7.9% Quarters Ended December 31, % Change Years Ended December 31, % Change Source: PMI Financials or estimates
39 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Net Revenues by Product Category ($ in millions) / (Unaudited) (a) 2021 Includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessment. Excluding this impact total PMI adjused net revenues are $31,651 million and for combustible tobacco $22,313 million. (b) 2023 Includes a reduction in net revenues of $80 million related to the termination of distribution arrangement in the Middle East. Excluding this impact total PMI adjusted net revenues are $35,254 million and for combustible tobacco $22,414 million. Note: Sum of product categories might not foot to Total PMI due to roundings. Source: PMI Financials or estimates 2020 2021 2022 2023 2024 2025 Combustible Tobacco $ 21,747 $ 22,067 (a) $ 21,572 $ 22,334 (b) $ 23,218 $ 23,794 Smoke-Free 6,947 9,338 10,190 12,840 14,660 16,854 Total PMI $ 28,694 $ 31,405 $ 31,762 $ 35,174 $ 37,878 $ 40,648 Years Ended December 31, 40 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures SSEA, CIS & MEA Net Revenues by Product Category ($ in millions) / (Unaudited) (a) 2021 Includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessment. Excluding this impact, total SSEA, CIS & MEA adjusted net revenues are $10,104 million and for combustible tobacco $8,980 million. (b) 2023 Includes a reduction in net revenues of $80 million related to the termination of distribution arrangement in the Middle East. Excluding this impact, total SSEA, CIS & MEA adjusted net revenues are $10,709 million and for combustible tobacco $9,401 million. Note: Sum of product categories might not foot to Total SSEA, CIS & MEA due to roundings. Source: PMI Financials or estimates 2021 2023 Combustible Tobacco $ 8,734 (a) $ 9,321 (b) Smoke-Free 1,124 1,308 Total SSEA, CIS & MEA $ 9,858 $ 10,629 Years Ended December 31,
41 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Net Revenues to Adjusted Net Revenues, excluding Currency and Acquisitions / Divestitures ($ in millions) / (Unaudited) Source: PMI Financials or estimates Net Revenues Adj. Net Revenues Currency Adj. Net Revenues excluding Currency Acqui- sitions / Divestitures Adj. Net Revenues excl. Currency & Acquisitions / Divestitures Net Revenues Adj. Net Revenues Total Excluding Currency Excluding Currency & Acquisitions / Divestitures 2025 2024 $ 40,648 $ - $ 40,648 $ 461 $ 40,187 $ (170) $ 40,357 Total PMI $ 37,878 $ - $ 37,878 7.3% 6.1% 6.5% 2024 2023 $ 37,878 $ - $ 37,878 $ (841) $ 38,719 $ - $ 38,719 Total PMI $ 35,174 $ (80) $ 35,254 7.4% 9.8% 9.8% 2023 2022 $ 35,174 $ (80) $ 35,254 $ (1,112) $ 36,366 $ 2,113 $ 34,253 Total PMI $ 31,762 $ - $ 31,762 11.0% 14.5% 7.8% 2022 2021 $ 31,762 $ - $ 31,762 $ (2,656) $ 34,418 $ 515 $ 33,903 Total PMI $ 31,405 $ (246) $ 31,651 0.4% 8.7% 7.1% 2021 2020 $ 31,405 $ (246) $ 31,651 $ 678 $ 30,973 $ 109 $ 30,864 Total PMI $ 28,694 $ - $ 28,694 10.3% 7.9% 7.6% Special Items Special Items Years Ended December 31, % Change Years Ended December 31, % Change Years Ended December 31, % Change Years Ended December 31, % Change Years Ended December 31, % Change 42 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Gross Profit by Product Category to Adjusted Gross Profit ($ in millions) / (Unaudited) (a) 2021 full-year includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessments. (b) 2022 full-year includes Swedish Match AB acquisition accounting related items ($125 million of which $18 million in Combustible Tobacco and $107 million in Smoke-Free), impairment of goodwill and other intangibles ($112 million in Smoke-Free), charges related to the war in Ukraine ($61 million of which $39 million in Combustible Tobacco and $22 million in Smoke-Free) and amortization of intangibles ($58 million in Smoke-Free). (c) 2023 full-year includes termination of distribution arrangement in the Middle East ($80 million in Combustible Tobacco), Swedish Match AB acquisition accounting related items ($18 million in Combustible Tobacco), charges related to the war in Ukraine ($13 million in Combustible Tobacco) and mainly amortization of intangibles in cost of goods sold ($59 million in Smoke-free incl. W&H). (d) 2024 full-year and 2025 full-year 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. Source: PMI Financials or estimates Gross Profit Special Items Adj. Gross Profit Gross Profit Special Items(a) Adj. Gross Profit Gross Profit Special Items(b) Adj. Gross Profit Gross Profit Special Items(c) Adj. Gross Profit Gross Profit Special Items(d) Adj. Gross Profit Gross Profit Special Items(d) Adj. Gross Profit Combustible Tobacco $ 14,986 $ - $ 14,986 $ 15,118 $ (246) $ 15,364 $ 14,475 $ (57) $ 14,532 $ 14,097 $ (111) $ 14,208 $ 14,830 $ - $ 14,830 $ 15,594 $ - $ 15,594 Smoke-Free 4,139 - 4,139 6,257 - 6,257 5,885 (299) 6,184 8,184 (59) 8,243 9,719 (51) 9,770 11,688 (22) 11,710 Total PMI $ 19,125 $ - $ 19,125 $ 21,375 $ (246) $ 21,621 $ 20,360 $ (356) $ 20,716 $ 22,281 $ (170) $ 22,451 $ 24,549 $ (51) $ 24,600 $ 27,282 $ (22) $ 27,304 2020 2022 2025202420232021
43 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Operating Income to Adjusted Operating Income ($ in millions, except effective tax rate) / (Unaudited) Source: PMI Financials or estimates P&L 2020 2021 2022 2023 2024 2025 Operating income 11,668 12,975 12,246 11,556 13,402 14,892 Restructuring charges (149) (216) - (109) (180) (241) Termination of distribution arrangement in the Middle East - - - (80) - - Impairment of goodwill and other intangibles - - (112) (680) (27) (41) Amortization of intangibles (73) (96) (159) (497) (835) (1,003) Loss on expected sale of consumer accessories and other businesses - - - - - (94) Germany excise tax classification litigation charge - - - - - (176) RBH (Canada) Plan Implementation - - - - - 19 Charges related to the war in Ukraine - - (151) (53) - - Egypt sales tax charge - - - - (45) - Loss on sale of Vectura Group - - - - (199) - Megapolis localization tax impact - - - - - - Swedish Match AB acquisition accounting related items - - (125) (18) - - South Korea Indirect Tax Charge - - - (204) - - Termination of agreement with Foundation for a Smoke-Free World - - - (140) - - Costs associated with Swedish Match AB offer - - (115) - - - Asset acquisition cost - (51) - - - - Saudi Arabia customs assessments - (246) - - - - Brazil indirect tax credit 119 - - - - - Adjusted Operating Income 11,771 13,584 12,908 13,337 14,688 16,428 Years Ended December 31, 44 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) Source: PMI Financials or estimates Operating Income Adj. Operating Income Currency Adj. Operating Income excluding Currency Acqui- sitions / Divestitures Adj. Operating Income excl. Currency & Acquisitions / Divestitures Operating Income Adj. Operating Income Total Excluding Currency Excluding Currency & Acquisitions / Divestitures 2025 2024 $ 14,892 $ (1,536) $ 16,428 $ 154 $ 16,274 $ 31 $ 16,243 Total PMI $ 13,402 $ (1,286) $ 14,688 11.8% 10.8% 10.6% 2024 2023 $ 13,402 $ (1,286) $ 14,688 $ (682) $ 15,370 $ 46 $ 15,324 Total PMI $ 11,556 $ (1,781) $ 13,337 10.1% 15.2% 14.9% 2023 2022 $ 11,556 $ (1,781) $ 13,337 $ (1,073) $ 14,410 $ 1,027 $ 13,383 Total PMI $ 12,246 $ (662) $ 12,908 3.3% 11.6% 3.7% 2022 2021 $ 12,246 $ (662) $ 12,908 $ (1,507) $ 14,415 $ 99 $ 14,316 Total PMI $ 12,975 $ (609) $ 13,584 (5.0)% 6.1% 5.4% 2021 2020 $ 12,975 $ (609) $ 13,584 $ 269 $ 13,315 $ 19 $ 13,296 Total PMI $ 11,668 $ (103) $ 11,771 15.4% 13.1% 13.0% Years Ended December 31, % Change Years Ended December 31, % Change Years Ended December 31, % Change Years Ended December 31, % Change Special Items Special Items Years Ended December 31, % Change
45 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Selling, General & Administrative Costs to Adjusted Selling, General & Administrative Costs ($ in millions, except effective tax rate) / (Unaudited) Note: Sum of adjustments might not foot to Adj. SG&A costs due to roundings. Source: PMI Financials or estimates P&L 2020 2022 2023 2024 2025 Marketing, Administration and Research Costs 7,457 8,114 10,060 11,147 12,349 Impairment of goodwill - - 665 - 41 Selling, General & Administrative (SG&A) Costs 7,457 8,114 10,725 11,147 12,390 Loss on deconsolidation of RBH - - - - - Canadian tobacco litigation-related expense - - - - - Russia excise and VAT audit charge - - - - - Restructuring charges (149) - (109) (180) (241) Amortization of intangibles (73) (101) (439) (784) (980) Brazil indirect tax credit 119 - - - - Asset acquisition cost - - - - - Charges related to the war in Ukraine - (89) (38) - - Costs associated with Swedish Match AB offer - (115) - - - Impairment of goodwill and other intangibles - - (680) (27) (41) South Korea Indirect Tax Charge - - (204) - - Termination of agreement with Foundation for a Smoke-Free World - - (140) - - Egypt sales tax charge - - - (45) - Loss on sale of Vectura Group - - - (199) - Loss on expected sale of consumer accessories and other businesses - - - - (94) Germany excise tax classification litigation charge - - - - (176) RBH (Canada) Plan Implementation - - - - 19 Adjusted Selling, General & Administrative (Adj. SG&A) Costs 7,354 7,808 9,114 9,912 10,876 Years Ended December 31, 46 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS, excluding Currency (Unaudited) (a) Adjusted Diluted EPS, excluding the impact of net earnings attributable to RBH from January 1, 2019 through March 21, 2019, and amortization of intangibles. Source: PMI Financials or estimates Years Ended December 31, Years Ended December 31(a), Years Ended December 31, Years Ended December 31, Years Ended December 31, 2020 2019 % Change 2020 2019 % Change 2022 2021 % Change 2024 2023 % Change 2025 2024 % Change Reported Diluted EPS $ 5.16 $ 4.61 11.9% $ 5.16 $ 4.61 11.9% $ 5.81 $ 5.83 (0.3)% $ 4.52 $ 5.02 (10.0)% $ 7.26 $ 4.52 60.6% Restructuring charges 0.08 0.23 0.08 0.23 - 0.12 0.10 0.06 0.14 0.10 Termination of distribution arrangement in the Middle East - - - - - - - 0.04 - - Impairment of goodwill and other intangibles - - - - - - 0.01 0.44 0.03 0.01 Amortization of intangibles - - 0.04 0.03 0.15 0.05 0.40 0.25 0.50 0.40 Saudi Arabia customs assessments - - - - - 0.14 - - - - Canadian tobacco litigation-related expense - 0.09 - 0.09 - - - - - - Loss on deconsolidation of RBH - 0.12 - 0.12 - - - - - - Russia excise and VAT audit charge - 0.20 - 0.20 - - - - - - Equity investee ownership dilution - - - - - (0.04) - - - - Asset acquisition cost - - - - - 0.03 - - - - Charges related to the war in Ukraine - - - - 0.08 - - 0.03 - - Megapolis localization tax impact - - - - - - 0.05 - - 0.05 Swedish Match AB acquisition accounting related items - - - - 0.06 - - 0.01 - - Costs associated with Swedish Match AB offer - - - - 0.06 - - - - - Income tax impact associated with Swedish Match AB financing - - - - (0.13) - 0.14 (0.11) (0.25) 0.14 Egypt sales tax charge - - - - - - 0.03 - - 0.03 Loss on sale of Vectura Group - - - - - - 0.13 - - 0.13 South Korea indirect tax charge - - - - - - - 0.11 - - Termination of agreement with Foundation for a Smoke-Free World - - - - - - - 0.07 - - Impairment related to the RBH equity investment - - - - - - 1.49 - - 1.49 Fair value adjustment for equity security investments 0.04 (0.02) 0.04 (0.02) (0.02) - (0.27) (0.02) (0.18) (0.27) Brazil indirect tax credit (0.05) - (0.05) - - - - - - - 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 - Net earnings attributable to RBH - - - (0.06) - - - - - - Tax items (0.06) (0.04) (0.06) (0.04) (0.03) - (0.03) 0.11 (0.11) (0.03) Adjusted Diluted EPS $ 5.17 $ 5.19 (0.4)% $ 5.21 $ 5.16 1.0% $ 5.98 $ 6.13 (2.4)% $ 6.57 $ 6.01 9.3% $ 7.54 $ 6.57 14.8% Less: Currency (0.32) (0.32) (0.77) (0.38) 0.04 Adjusted Diluted EPS, excluding Currency $ 5.49 $ 5.19 5.8% $ 5.53 $ 5.16 7.2% $ 6.75 $ 6.13 10.1% $ 6.95 $ 6.01 15.6% $ 7.50 $ 6.57 14.2%
Championing a Smoke-Free World CAGNY Conference February 18, 2026 Jacek Olczak, Group CEO PMI Emmanuel Babeau, Group CFO PMI
FAQ
What did Philip Morris International (PM) disclose in its latest 8-K and CAGNY presentation?
Philip Morris International furnished CAGNY conference slides outlining its smoke-free strategy and medium-term targets. The company highlighted 2025 net revenues of
How important are smoke-free products in Philip Morris International’s (PM) 2025 results?
Smoke-free products are central to Philip Morris International’s results, generating
What financial growth targets did Philip Morris International (PM) set for 2026-2028?
For 2026‑2028, Philip Morris targets a
What was Philip Morris International’s (PM) adjusted EPS and revenue growth in 2025?
In 2025, Philip Morris International reported adjusted diluted EPS of
How much cash flow and capital spending does Philip Morris International (PM) anticipate for 2026-2028?
Philip Morris International expects about
What does Philip Morris International (PM) say about shareholder returns and leverage?
Philip Morris International emphasizes “sustainable performance with superior shareholder returns,” citing strong long-term total shareholder return versus indices. It targets net debt to adjusted EBITDA of around 2.0x by end‑2026 and reiterates its commitment to a progressive dividend, supported by high cash conversion metrics.
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Feb 19, 2026
[144] Philip Morris International Inc. SEC Filing
Feb 19, 2026
[144] Philip Morris International Inc. SEC Filing
Feb 19, 2026
[144] Philip Morris International Inc. SEC Filing
Feb 19, 2026
[144] Philip Morris International Inc. SEC Filing