Philip Morris (NYSE: PM) 2025 EPS surges as smoke-free sales accelerate

Q: How fast is Philip Morris International’s smoke-free business growing in 2025?

PMI’s smoke-free business generated $16.9 billion in 2025 net revenues, growing 15.0% year over year. Smoke-free products made up 41.5% of total net revenues and nearly 43% of gross profit, with heated tobacco unit volumes up 11.0% and nicotine pouch shipments up 36.6%.

Q: What were Philip Morris International’s 2025 fourth-quarter results?

In fourth-quarter 2025, PMI reported net revenues of $10.4 billion , up 6.8% versus Q4 2024. Reported diluted EPS was $1.37 , and adjusted diluted EPS reached $1.70 , increasing 9.7%. Smoke-free net revenues grew 12.0% in the quarter, outpacing combustibles.

Q: What dividend did Philip Morris International declare with these 2025 results?

PMI declared a regular quarterly dividend of $1.47 per share , equivalent to an annualized $5.88 per share . This reflects the company’s ongoing capital return approach alongside higher earnings and growing contributions from its global smoke-free product portfolio.

Q: How did Philip Morris International’s profit margins change in 2025?

PMI’s adjusted operating income increased to $16.4 billion in 2025, up 11.8% from 2024, lifting the adjusted operating margin to 40.4% from 38.8%. Gross profit also grew 11.1% to $27.3 billion , supported by smoke-free growth and pricing in combustibles.

Q: What is Philip Morris International’s debt and leverage position at year-end 2025?

At December 31, 2025, PMI had $48.8 billion of total debt and $4.9 billion of cash, resulting in net debt of $44.0 billion. Using adjusted EBITDA of $17.4 billion , total debt-to-adjusted EBITDA was 2.81 times and net debt-to-adjusted EBITDA was 2.53 times.

Q: How are traditional combustible products performing versus smoke-free at Philip Morris International?

In 2025, combustibles generated $23.8 billion in net revenues, growing 2.5%, with gross profit up 5.2%. In contrast, smoke-free net revenues grew 15.0% to $16.9 billion, with gross profit up 20.3%, shifting PMI’s earnings mix toward reduced-risk products.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Philip Morris International reported strong 2025 fourth-quarter and full-year results, highlighted by faster growth in smoke-free products and higher earnings. Full-year net revenues reached $40.6 billion, up 7.3%, with the smoke-free business contributing $16.9 billion, a 15.0% increase, while combustibles grew 2.5%.

Reported diluted EPS rose to $7.26 from $4.52, and adjusted diluted EPS climbed to $7.54, up 14.8% (14.2% on a currency-neutral basis). Adjusted operating income grew 11.8% to $16.4 billion, expanding the adjusted operating margin to 40.4%.

Smoke-free products accounted for 41.5% of net revenues and nearly 43% of gross profit, with heated tobacco units up 11.0% and nicotine pouch shipments up 36.6% for the year. The board declared a regular quarterly dividend of $1.47 per share, or $5.88 on an annualized basis.

Positive

Strong 2025 earnings growth with reported diluted EPS rising to $7.26 from $4.52 and adjusted diluted EPS up 14.8% to $7.54, supported by 11.8% growth in adjusted operating income and higher margins.
Rapid expansion of smoke-free business to $16.9 billion of net revenues, growing 15.0% year over year and reaching 41.5% of total net revenues and nearly 43% of gross profit, advancing PMI’s transition away from combustibles.

Negative

None.

Insights

PMI delivers strong 2025 earnings with rapid smoke-free growth and margin expansion.

Philip Morris International showed robust 2025 performance. Net revenues grew 7.3% to $40.6B, while adjusted operating income rose 11.8% to $16.4B, lifting the adjusted operating margin to 40.4%. Reported diluted EPS increased to $7.26, with adjusted EPS up 14.8% to $7.54.

The strategic pivot toward smoke-free products advanced meaningfully. Smoke-free net revenues reached $16.9B, up 15.0%, and represented 41.5% of total net revenues and nearly 43% of gross profit. Heated tobacco unit volumes grew 11.0%, and nicotine pouch shipments rose 36.6%, underscoring traction in IQOS and ZYN.

Leverage metrics improved modestly, with Total Debt to Adjusted EBITDA at 2.81 and Net Debt to Adjusted EBITDA at 2.53 for 2025. Together with a regular quarterly dividend of $1.47 per share, the results indicate stronger cash generation capacity, though future performance will depend on sustaining smoke-free growth across regions.

02/06/2026 - 07:02 AM

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 6, 2026

Philip Morris International Inc.

(Exact name of registrant as specified in its charter)

Virginia

1-33708

13-3435103

(State or other jurisdiction

of incorporation)

(Commission File Number)

(I.R.S. Employer

Identification No.)

677 Washington Blvd, Ste. 1100

Stamford

Connecticut

06901

(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

Common Stock, no par value

New York Stock Exchange

2.750% Notes due 2026

PM26A

New York Stock Exchange

2.875% Notes due 2026

PM26

New York Stock Exchange

0.125% Notes due 2026

PM26B

New York Stock Exchange

3.125% Notes due 2027

PM27

New York Stock Exchange

3.125% Notes due 2028

PM28

New York Stock Exchange

2.875% Notes due 2029

PM29

New York Stock Exchange

3.375% Notes due 2029

PM29A

New York Stock Exchange

2.750% Notes due 2029

PM29D

New York Stock Exchange

3.750% Notes due 2031

PM31B

New York Stock Exchange

0.800% Notes due 2031

PM31

New York Stock Exchange

3.250% Notes due 2032

PM32

New York Stock Exchange

3.125% Notes due 2033

PM33

New York Stock Exchange

2.000% Notes due 2036

PM36

New York Stock Exchange

1.875% Notes due 2037

PM37A

New York Stock Exchange

6.375% Notes due 2038

PM38

New York Stock Exchange

1.450% Notes due 2039

PM39

New York Stock Exchange

4.375% Notes due 2041

PM41

New York Stock Exchange

4.500% Notes due 2042

PM42

New York Stock Exchange

3.875% Notes due 2042

PM42A

New York Stock Exchange

4.125% Notes due 2043

PM43

New York Stock Exchange

4.875% Notes due 2043

PM43A

New York Stock Exchange

4.250% Notes due 2044

PM44

New York Stock Exchange


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 2.02.			Results of Operations and Financial Condition.

On February 6, 2026, Philip Morris International Inc. (the “Company”) issued a press release announcing its financial results for the quarter and the fiscal year ended December 31, 2025, as well as the accompanying glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures. The earnings release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference to this Item 2.02. The glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures is attached as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference to this Item 2.02.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, 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 2.02 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. Press Release, dated February 6, 2026 (furnished pursuant to Item 2.02).


99.2			Glossary of Key Terms, Definitions, Explanatory Notes, Select Financial Information and Reconciliations of Non-GAAP Financial Measures (furnished pursuant to Item 2.02).


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 6, 2026

Exhibit 99.1


PRESS RELEASE

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

Delivers Full Year 2025 Reported Diluted EPS of $7.26 compared to $4.52 in 2024 and Adjusted Diluted EPS of $7.54, Representing Growth of 14.8%, and 14.2% on a Currency-Neutral Basis;

Provides 2026 - 2028 Growth Targets

STAMFORD, CT, February 6, 2026 – 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."


Results Highlights

•Smoke-free business (SFB): Our smoke-free business delivered a strong performance, with full-year shipment volumes up by 12.8%, net revenues growing by 15.0% (14.1% organically) and gross profit increasing by 20.3% (18.7% organically). Our smoke-free business accounted for 41.5% of our total net revenues, and nearly 43% of total gross profit (up by 2.8pp and 3.2pp respectively vs. full-year 2024). Our smoke-free products (SFP) are now available in 106 markets, with over 43 million estimated adult consumers (up by around 4.5 million versus December 2024). In the fourth quarter, we delivered 12.0% net revenue growth (8.6% organically), 12.2% gross profit growth (8.3% organically) while achieving a key milestone with over 50% of net revenues generated by the smoke-free business in 3 of our 4 regions. On full-year basis, we reached the same milestone in 27 markets, including 8 markets where we exceeded 75%.

•Heat-not-burn SFP: IQOS continued to drive the growth of the global category, where PMI holds approximately 76% volume share. We strengthened the overall position of IQOS (gaining 1pp of the combined cigarette and HTU industry volumes in the fourth quarter to reach 9.6%) as the second largest nicotine ‘brand’ in markets where present, with the #1 volume share position in 13 markets. HTU adjusted in-market sales (IMS) volume growth, which excludes the net impact of estimated distributor and wholesaler inventory movements, accelerated to 12% in the fourth quarter and increased by an estimated 10.5% for the full-year, broadly in line with shipment growth.

•In Japan, PMI HTU adjusted IMS grew by an estimated 7.0% for the full year and 5.8% in the fourth quarter. IQOS continues to hold close to 70% of heat-not-burn category volume, notwithstanding intensifying competition. IQOS HTU adjusted market share of total nicotine increased by 2.0pp to 32.6% in the fourth

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.

quarter. In December, the overall HTU category exceeded 50% of total nicotine offtake share at the national level, including 19 out of 20 major cities and 16 prefectures.

•In Europe, with continuous brand equity investment and innovation, IQOS HTU adjusted IMS grew by an estimated 8.6% for the full year with an acceleration in the fourth quarter to 10.3% and IQOS HTU adjusted market share up by 1.5pp to 12.0%. Another year of dynamic adjusted IMS growth was led by Italy's return to double-digit performance, which was also delivered in many other markets, notably Germany, Greece, Romania and Spain.

•Outside Europe and Japan, adjusted IMS grew strongly in the fourth quarter and offtake share increased in key cities across the globe, including Mexico City, Jakarta, Riyadh, Kuala Lumpur, Cairo and Manila. In Taiwan, the recent launch of IQOS delivered very promising early results.

•Oral SFP: Full-year shipment volume increased by 18.5% (up 7.3% in Q4) in pouch or pouch equivalents, fueled by nicotine pouches, which grew by nearly 37% in the U.S., and over 35% in international markets, despite some snus volume declines in the Nordics.

•In the U.S., nicotine pouches account for a high single-digit percentage of total industry volumes and remain the fastest growing nicotine category. ZYN, with a premium price positioning, continued to lead the category with around two-thirds value share in 2025. Supported by a wide range of commercial activities to further enhance the equity and presence of the brand, ZYN shipment volume in the fourth quarter reached 196 million cans, an increase of over 19%, whilst offtake volume grew 23% as estimated by Nielsen. Full-year ZYN shipment volumes reached 794 million cans.

•The international nicotine pouch business continues to expand, with ZYN now available in 55 markets and growth fueled by strong market share gains of this dynamically growing category. Our focus remains on switching legal-age smokers with a relevant product portfolio, including 1.5mg variants which are now available in around two thirds of ZYN markets.

•E-vapor SFP: VEEV continued to accelerate its increasingly profitable growth, and is now available in 47 markets. Shipment volumes more than doubled on a full-year basis, notably driven by Europe and Indonesia. Within the closed pods segment, VEEV holds the #1 volume share position in 8 markets, and is gaining significant market share, sourcing primarily from legal-age consumers of other vaping products and adult smokers. PMI remains committed to building and commercializing the brand in a focused, responsible and profitable manner.

•Combustibles: Notwithstanding expected lower volumes, full-year net revenues grew by 2.5% (1.8% organically) driven by strong pricing, partly offset by geographic mix. Together with productivity improvements, this resulted in gross profit growth of 5.2% (4.4% organically). In the fourth quarter net revenues grew by 3.2% (up 0.3% organically) with gross profit up by 5.5% (2.8% organically) and Marlboro reaching a record high 11.0% category share. Our overall cigarette category share was slightly lower for the full-year, predominantly due to Turkey.

•Dividend: Declared regular quarterly dividend of $1.47 per share, or an annualized $5.88 per share.

- 2 -


Full-Year 2025 Performance Highlights


	Total PMI	SFP	HTU	Oral SFP	E-vapor2	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 Items3	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-vapor2	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 Items3	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.

- 3 -


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:

•An estimated total international industry volume decline of around 2% for cigarettes and HTUs, excluding China and the U.S.;

•Broadly stable total PMI cigarette and SFP shipment volume, with high-single digit SFP shipment volume growth, and a cigarette shipment volume decline of around 3%, including the impact of weaker industry volume in India and Mexico, and the ongoing recovery of our business in Turkey;

•Net revenue growth of 5% to 7% on an organic basis;

•Organic operating income growth of 7% to 9%;

•Full-year amortization of acquired intangibles of $0.51 per share;

•Broadly stable net financing costs;

•An effective tax rate, excluding discrete tax events, of around 21.5%;

•Operating cash flow around $13.5 billion at prevailing exchange rates, subject to year-end working capital requirements;

- 4 -

•Capital expenditures of $1.4 to $1.6 billion, predominantly due to investments supporting the smoke-free business;

•Further net debt to adjusted EBITDA ratio improvement as we target a ratio of close to 2.0x by the end of 2026, at prevailing exchange rates;

•No share repurchases; and

•First quarter adjusted diluted EPS of $1.80 to $1.85, including an estimated favorable currency impact of 14 cents at prevailing exchange rates.

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.


Investor Relations:			Media:
Email: InvestorRelations@pmi.com			Email: Corey.Henry@pmi.com
Stamford, CT: +1 (203) 905 2413			Stamford, CT: +1 (203) 905 2410
			Lausanne: +41 582 424 500

- 5 -


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	13	(126)
Volume/Mix	73	54	(54)	1	72
Other	(3)	—	(1)	—	(2)
Acquisitions & Divestitures	(44)	(44)	—	—	—
Currency	345	287	56	(23)	25
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	13	(126)
Volume/Mix	75	30	26	(46)	65
Cost/Other	(289)	(184)	(60)	30	(75)
Acquisitions & Divestitures	3	3	—	—	—
Currency	40	153	(71)	(57)	15
2025	3,373	1,910	941	514	8
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	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	0.5	—	—	—
vs. Q4 2024	(22.6)%	(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

- 6 -


Total PMI

•Estimated industry volume (excluding China and the U.S.) for cigarettes and HTUs was broadly stable.

•PMI's shipment volume was flat with SFP volumes up by 8.5%, offset by a cigarette volume decline of 2.2%, predominantly driven by Europe and East Asia, Australia and PMI Global Travel Retail regions.

•Net revenues increased by 3.7% on an organic basis, mainly reflecting: a favorable pricing variance due to higher combustible tobacco pricing; and favorable volume/mix driven by higher SFP volume, notwithstanding lower volumes and unfavorable mix for cigarettes. As expected, the net revenue growth rate was below the full-year, notably due to the shipment and phasing factors outlined previously.

•Adjusted operating income increased by 4.5% on an organic basis, mainly reflecting the same factors as for net revenues, partly offset by higher marketing, administration and research costs.


Europe

•The estimated industry volume for cigarettes and HTUs decreased by 3.6% to 126.4 billion units, with a 5.0% decrease for cigarettes and continued HTU growth. Markets with notable decreases include Poland (down by 15.4%), Ukraine (down by 16.5%), and France (down by 9.4%), partly offset by Bulgaria (up by 8.3%), Germany (up by 1.7%), and Serbia (up by 6.4%).

•PMI's shipment volume decreased by 0.4% with cigarettes down by 3.9% and SFP up by 7.6%.

•Oral SFP shipments decreased, primarily driven by lower snus volume due to inventory movements. Nicotine pouch shipment volume declined against a strong prior year comparator in the Nordics, notwithstanding a very strong performance in other markets.

•Net revenues increased by 5.1% on an organic basis, reflecting: a favorable pricing variance predominantly driven by higher combustible tobacco pricing; and favorable volume/mix driven by higher smoke-free products volume, notwithstanding lower volumes and unfavorable mix for cigarettes.

•Adjusted operating income increased by 5.8% organically, mainly due to the same factors as for net revenue, partly offset by higher marketing, administration and research costs.


SSEA, CIS & MEA

•The estimated industry volume for cigarettes and HTUs increased by 2.0% to 402.0 billion units, mainly due to India (up by 11.1%) and Turkey (up by 4.6%), partly offset by Saudi Arabia (down by 11.3%).

•PMI's shipment volume increased by 0.8% with SFP up by 10.1% and cigarettes down by 0.2%.

•PMI's HTU adjusted IMS volume increased by an estimated 20.4% with strong growth across the region.

•Net revenues increased by 6.5% on an organic basis, primarily reflecting: a favorable pricing variance, predominantly driven by higher combustible tobacco pricing; partly offset by unfavorable volume/mix driven by unfavorable cigarette mix notably due to the below mentioned commercial model change in Indonesia.

•A change in our commercial model for the below tier-one cigarette segment in Indonesia in the fourth quarter of 2024 resulted in lower net revenue growth, with no meaningful impact on operating income.

•Adjusted operating income increased by 25.3% on an organic basis, mainly reflecting a favorable price variance, predominantly driven by higher combustible tobacco pricing, partly offset by higher marketing, administration and research costs.

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East Asia, Australia & PMI Global Travel Retail

•The estimated industry volume for cigarettes and HTUs, excluding China, decreased by 2.1% to 79.3 billion units, with HTU growth more than offset by decrease in cigarettes. Notable decreases in South Korea (down by 8.0%) and Australia (down by 60.6%) were partly offset by Global Travel Retail (up by 5.6%) and Taiwan (up by 6.2%).

•PMI's shipment volume decreased by 1.7% with SFP up by 6.7% and cigarettes down by 10.5%.

•PMI's HTU adjusted in-market sales volume increased by an estimated 8.9%.

•Net revenues increased by 1.0% on an organic basis, primarily reflecting: a favorable price variance, predominantly due to higher combustible tobacco pricing.

•Adjusted operating income decreased by 0.5% organically due to unfavorable volume/mix driven by lower cigarette volume, partly offset by lower costs and favorable price variance.


Americas

•The estimated industry volume for cigarettes and HTUs, excluding the U.S., decreased by 1.9% to 49.1 billion units, driven by a decrease in the cigarette market. The decrease was mainly due to Canada (down by 13.8%) and Argentina (down by 4.0%), partly offset by Brazil (up by 0.8%).

•PMI's shipment volume increased by 0.1% with SFP up by 15.6% and cigarettes down by 2.9%.

•Oral SFP shipments increased by 16.1% to 230 million cans, predominantly driven by ZYN nicotine pouches in the U.S.

•Net revenues decreased by 4.4% organically, predominantly driven by the U.S., with an unfavorable price comparison to low levels of ZYN promotional activity in the prior year, partly offset by favorable volume/mix due to higher ZYN volume.

•Adjusted operating income decreased by 43.4% on an organic basis. While U.S. nicotine pouches retained gross margins superior to our international SFP business, this decrease primarily reflects the same factors as for net revenues; and higher marketing, administration and research costs, including further investments in our U.S. capabilities and organization.

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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	81	(186)
Volume/Mix	920	258	(146)	211	597
Other	23	—	36	—	(13)
Acquisitions & Divestitures	(170)	(170)	—	—	—
Currency	461	528	64	(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	81	(186)
Volume/Mix	1,084	127	186	224	547
Cost/Other	(1,371)	(710)	(326)	31	(366)
Acquisitions & Divestitures	87	56	31	—	—
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	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

- 9 -


Total PMI

•Estimated industry volume (excluding China and the U.S.) for cigarettes and HTUs was broadly stable, with a 1.1% decrease for cigarettes, largely offset by 10.2% growth of HTUs.

•PMI's shipment volume increased by 1.4% with smoke-free volumes up by 12.8%. All SFP categories grew strongly, and cigarette volume declined by 1.5%.

•Net revenues increased organically by 6.5%, mainly reflecting: a favorable pricing variance due to higher combustible tobacco pricing; and favorable volume/mix, driven by higher SFP volume, notwithstanding unfavorable mix and lower volumes for cigarettes.

•Adjusted operating income increased by 10.6% organically, reflecting: the same factors as for net revenues; partly offset by marketing, administration and research costs.


Europe

•PMI's shipment volume decreased by 1.0% with cigarettes down by 5.5% and SFP up by 10.9%.

•Net revenues increased organically by 6.8%, reflecting: a favorable price variance, predominantly due to higher combustible tobacco pricing; and favorable volume/mix, driven by higher SFP volume, notwithstanding lower volumes and unfavorable mix for cigarettes. Our Aspeya wellness business also grew organic net revenues strongly.

•Adjusted operating income increased by 8.5% on an organic basis, primarily reflecting: the same factors as for net revenues; partly offset by higher marketing, administration and research costs.


SSEA, CIS & MEA

•PMI's shipment volume increased by 1.7% with SFP up by 14.1% and cigarettes up by 0.7%.

•Net revenues increased organically by 6.4%, mainly reflecting: a favorable price variance, predominantly driven by combustible tobacco pricing; while unfavorable cigarette mix, due to the commercial model change in Indonesia, was largely offset by higher cigarette and SFP volume.

•Adjusted operating income increased by 18.6% on an organic basis, mainly reflecting: a favorable price variance as well as higher cigarette and SFP volume, partly offset by higher marketing, administration and research costs as well as manufacturing costs (notably tobacco leaf).


East Asia, Australia & PMI Global Travel Retail

•PMI's shipment volume increased by 4.1% with SFP up by 11.0% and cigarettes down by 4.1%.

•Net revenues increased 4.6% organically, predominantly due to: favorable volume/mix, driven by SFP volume; coupled with favorable price variance, driven by higher combustible tobacco pricing.

•Adjusted operating income increased 11.7% organically, reflecting the same factors as for net revenues.


Americas

•PMI's shipment volume increased by 3.1% with SFP up by 27.7% and cigarettes down by 1.7%.

•Net revenues increased 8.8% organically with favorable volume/mix, driven by SFP volume, and an unfavorable U.S. price variance partly offset by cigarette pricing outside of the U.S.

•Adjusted OI decreased by 1.4% organically, reflecting the same factors as for net revenues, more than offset by higher marketing, administration and research costs as well as manufacturing costs.

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Additional Information



Fourth-Quarter			Full-Year
2025	2024		2025	2024
$ 1.37	$ (0.38)	Reported Diluted EPS	$ 7.26	$ 4.52
0.01	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	73	(3)
Cost of Sales(1)	(3,560)		(3,423)		(4.0)%	(1.0)%	(137)	(131)	27	—	2	(35)
Marketing, Administration and Research Costs(2)	(3,429)		(3,024)		(13.4)%	(8.3)%	(405)	(174)	20	—	—	(251)


Operating Income	$ 3,373		$ 3,259		3.5%	2.2%	114	40	3	285	75	(289)
Restructuring charges	2		(12)		+100%	+100%	14	—	—	—	—	14

Amortization of intangibles	(257)		(247)		(4.0)%	(4.0)%	(10)	—	—	—	—	(10)


Loss on sale of Vectura Group	—		(1)		+100%	+100%	1	—	—	—	—	1
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	40	3	285	75	(200)

Adjusted Operating Income Margin	35.9	%	36.3	%	(0.4)pp	0.3pp
(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.

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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	23
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	87	1,536	1,084	(1,371)
Restructuring charges	(241)		(180)		(33.9)	%	(33.9)	%	(61)	—	—	—	—	(61)

Impairment of goodwill and other intangibles	(41)		(27)		(51.9)	%	-(100)%		(14)	—	26	—	—	(40)
Amortization of intangibles	(1,003)		(835)		(20.1)	%	(23.7)	%	(168)	—	30	—	—	(198)
Loss on sale of Vectura Group	—		(199)		+100%		+100%		199	—	—	—	—	199
Egypt sales tax charge	—		(45)		+100%		+100%		45	—	—	—	—	45
Germany excise tax classification litigation charge	(176)		—		—	%	—	%	(176)	—	—	—	—	(176)
RBH (Canada) Plan implementation	19		—		—	%	—	%	19	—	—	—	—	19
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	31	1,536	1,084	(1,065)

Adjusted Operating Income Margin	40.4	%	38.8	%	1.6pp		1.4pp
(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.

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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	20	2,970
vs. Q4 2024	17.2%	(13.8)%	59.1%	(23.4)%	19.9%
Snus	1,096	1,022	—	62	12
vs. Q4 2024	(11.0)%	(15.8)%	—	—	(32.6)%
Moist Snuff	523	—	—	—	523
vs. Q4 2024	(2.4)%	—	—	—	(2.4)%
Other Oral SFP	14	14	—	—	—
vs. Q4 2024	(23.6)%	(23.6)%	—	—	—
Total	4,974	1,276	111	82	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	95	11,969
vs. FY 2024	36.0%	9.4%	98.4%	98.4%	37.2%
Snus	4,813	4,467	—	288	58
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	74	73	—	—	—
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.

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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

- 14 -

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.

- 15 -


																	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	2.4	1.7	2.4	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	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	0.4	(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	0.4	17.1	30.1	31.0	(0.9)	0.6	0.6	—
Philippines	11.8	11.2	4.7	5.5	5.3	5.3	5.4	5.2	4.4	0.1	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	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	5.6	—	5.5	5.5	(0.8)	0.1	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	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	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

(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 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%

Exhibit 99.2

Philip Morris International Inc.

Glossary of Key Terms, Definitions

and Explanatory Notes; and

Select Financial Information and Reconciliations of

Non-GAAP Financial Measures

2025 Full Year and Fourth-Quarter Results

February 6, 2026

Glossary of Key Terms, Definitions

and Explanatory Notes

General

•"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 and PMI market share performance reflect cigarettes and heated tobacco units, unless otherwise stated.

•Illicit products are products resulting from any practice or conduct prohibited by law relating to the production, shipment, receipt, possession, distribution, sale, or purchase of goods, including any practice or conduct intended to facilitate such activity.

•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 and Global Travel Retail 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 segment results (previously referred to as Wellness & Healthcare) 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.

Smoke-Free

•Smoke-free business ("SFB”) is the term PMI uses to refer to all of its smoke-free products. SFB also includes wellness 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 products primarily refer to products associated with 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 years11outside 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 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: NCPT sample-based estimations use a 95% Confidence Interval. The accuracy and reliability of the 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.

•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.

•E-vapor products conversion: one milliliter of e-vapor liquid equivalent to 10 units.

11Minimum 18 years or older depending on market regulation

Select Financial Information and Reconciliations of Non-GAAP Financial Measures


							Schedule 1 (1 of 2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Diluted Earnings Per Share (EPS)
($ in millions, except per share data) / (Unaudited)

		Quarters Ended		Diluted EPS		Years Ended
	December 31,				December 31,
			$ 1.37	2025 Diluted Earnings Per Share (1)				$ 7.26
			$ (0.38)	2024 Diluted Earnings Per Share (1)				$ 4.52
			$ 1.75	Change				$ 2.74
			+100%	% Change				60.6%

				Reconciliation:
			$ (0.38)	2024 Diluted Earnings Per Share (1)				$ 4.52
			0.01	2024 Restructuring charges				0.10
			0.11	2024 Amortization of intangibles				0.40
			—	2024 Impairment of other intangibles				0.01
			—	2024 Egypt sales tax charge				0.03
			—	2024 Loss on sale of Vectura Group				0.13
			1.49	2024 Impairment related to the RBH equity investment				1.49



			0.05	2024 Megapolis localization tax impact				0.05
			0.14	2024 Income tax impact associated with Swedish Match AB financing				0.14
			0.13	2024 Fair value adjustment for equity security investments				(0.27)
			—	2024 Tax Items				(0.03)
			(0.01)	2025 Restructuring charges				(0.14)



			—	2025 Impairment of goodwill				(0.03)
			(0.13)	2025 Amortization of intangibles				(0.50)
			(0.06)	2025 Loss on expected sale of consumer accessories and other businesses				(0.06)
			0.01	2025 Income tax impact associated with Swedish Match AB financing				0.25
			—	2025 Germany excise tax classification litigation charge				(0.10)
			—	2025 RBH (Canada) Plan Implementation, including dividend income, net				0.10
			—	2025 Impairment of Wellness business related equity investment				(0.09)
			(0.14)	2025 Fair value adjustment for equity security investments				0.18
			—	2025 Tax Items				0.11
			0.01	Currency				0.04
			0.05	Interest				0.09
			(0.01)	Change in tax rate				(0.01)

			0.10	Operations (2)				0.85
			$ 1.37	2025 Diluted Earnings Per Share (1)				$ 7.26



					Schedule 1 (2 of 2)

(1) Basic and diluted EPS were calculated using the following (in millions):

	Quarters Ended			Years Ended
	December 31,			December 31,
	2025	2024		2025		2024
	$ 2,141	$ (579)	Net Earnings attributable to PMI	$ 11,348		$ 7,057
	6	6	Less: Distributed and undistributed earnings attributable to share-based payment awards (3)	32		23
	$ 2,135	$ (585)	Net Earnings for basic and diluted EPS	$ 11,316		$ 7,034

	1,557	1,555	Weighted-average shares for basic EPS	1,556		1,554
	1	2	Plus Contingently Issuable Performance Stock Units (3)	2		2
	1,558	1,557	Weighted-average shares for diluted EPS	1,558		1,556

(2) Includes the impact of shares outstanding and share-based payments
(3) 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


								Schedule 2
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 December 31,					Years Ended December 31,
	2025	2024	% Change			2025	2024	% Change
	$ 1.37	$ (0.38)	+100%		Reported Diluted EPS	$ 7.26	$ 4.52	60.6	%
	0.01				Less: Currency	0.04
	$ 1.36	$ (0.38)	+100%		Reported Diluted EPS, excluding Currency	$ 7.22	$ 4.52	59.7	%


	Quarters Ended December 31,					Years Ended December 31,
	2025	2024	% Change			2025	2024	% Change
	$ 1.37	$ (0.38)	+100%		Reported Diluted EPS	$ 7.26	$ 4.52	60.6	%
	0.01	0.01			Restructuring charges	0.14	0.10
	—	—			Egypt sales tax charge	—	0.03
	—	—			Loss on sale of Vectura Group	—	0.13
	—	—			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
	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	9.7	%	Adjusted Diluted EPS	$ 7.54	$ 6.57	14.8	%
	0.01				Less: Currency	0.04
	$ 1.69	$ 1.55	9.0	%	Adjusted Diluted EPS, excluding Currency	$ 7.50	$ 6.57	14.2	%

	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


									Schedule 3


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 December 31,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions / Divestitures

2025					Combustible Tobacco	2024	% Change
$ 2,271	$ 138	$ 2,132	$ —	$ 2,132	Europe	$ 2,132	6.5	%	—	%	—	%
2,563	8	2,555	—	2,555	SSEA, CIS & MEA	2,458	4.3	%	3.9	%	3.9	%
563	(1)	564	—	564	EA, AU & PMI GTR	627	(10.2)	%	(10.0)	%	(10.0)	%
611	24	588	—	588	Americas	602	1.6	%	(2.3)	%	(2.3)	%
$ 6,008	$ 169	$ 5,839	$ —	$ 5,839	Total Combustible Tobacco	$ 5,819	3.2	%	0.3	%	0.3	%

2025					Smoke-Free	2024	% Change
$ 2,327	$ 149	$ 2,179	$ (44)	$ 2,222	Europe	$ 2,011	15.8	%	8.3	%	10.5	%
72	4	68	(44)	112	of which, Wellness	87	(17.2)	%	(21.9)	%	28.4	%
546	48	498	—	498	SSEA, CIS & MEA	410	33.2	%	21.6	%	21.6	%
862	(22)	884	—	884	EA, AU & PMI GTR	807	6.8	%	9.5	%	9.5	%
619	1	617	—	617	Americas	659	(6.2)	%	(6.4)	%	(6.4)	%
$ 4,354	$ 176	$ 4,178	$ (44)	$ 4,222	Total Smoke-Free	$ 3,887	12.0	%	7.5	%	8.6	%

2025					PMI	2024	% Change
$ 4,598	$ 287	$ 4,311	$ (44)	$ 4,355	Europe	$ 4,143	11.0	%	4.1	%	5.1	%
3,109	56	3,053	—	3,053	SSEA, CIS & MEA	2,868	8.4	%	6.5	%	6.5	%
1,425	(23)	1,448	—	1,448	EA, AU & PMI GTR	1,434	(0.6)	%	1.0	%	1.0	%
1,230	25	1,205	—	1,205	Americas	1,261	(2.5)	%	(4.4)	%	(4.4)	%
$ 10,362	$ 345	$ 10,017	$ (44)	$ 10,061	Total PMI	$ 9,706	6.8	%	3.2	%	3.7	%


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


									Schedule 4
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	Years Ended December 31,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions / Divestitures

2025					Combustible Tobacco	2024	% Change
$ 8,984	$ 268	$ 8,715	$ —	$ 8,715	Europe	$ 8,599	4.5	%	1.4	%	1.4	%
10,233	(19)	10,252	—	10,252	SSEA, CIS & MEA	9,848	3.9	%	4.1	%	4.1	%
2,415	(6)	2,421	—	2,421	EA, AU & PMI GTR	2,516	(4.0)	%	(3.8)	%	(3.8)	%
2,163	(74)	2,237	—	2,237	Americas	2,255	(4.1)	%	(0.8)	%	(0.8)	%
$ 23,794	$ 169	$ 23,625	$ —	$ 23,625	Total Combustible Tobacco	$ 23,218	2.5	%	1.8	%	1.8	%

2025					Smoke-Free	2024	% Change
$ 8,127	$ 260	$ 7,868	$ (170)	$ 8,038	Europe	$ 7,091	14.6	%	11.0	%	13.4	%
238	7	231	(170)	401	of which, Wellness	333	(28.5)	%	(30.5)	%	20.6	%
1,818	83	1,735	—	1,735	SSEA, CIS & MEA	1,413	28.7	%	22.8	%	22.8	%
4,217	(47)	4,264	—	4,264	EA, AU & PMI GTR	3,877	8.8	%	10.0	%	10.0	%
2,691	(4)	2,695	—	2,695	Americas	2,279	18.1	%	18.2	%	18.2	%
$ 16,854	$ 292	$ 16,562	$ (170)	$ 16,732	Total Smoke-Free	$ 14,660	15.0	%	13.0	%	14.1	%

2025					PMI	2024	% Change
$ 17,111	$ 528	$ 16,583	$ (170)	$ 16,753	Europe	$ 15,690	9.1	%	5.7	%	6.8	%
12,051	64	11,987	—	11,987	SSEA, CIS & MEA	11,261	7.0	%	6.4	%	6.4	%
6,632	(53)	6,685	—	6,685	EA, AU & PMI GTR	6,393	3.7	%	4.6	%	4.6	%
4,854	(78)	4,932	—	4,932	Americas	4,534	7.1	%	8.8	%	8.8	%
$ 40,648	$ 461	$ 40,187	$ (170)	$ 40,357	Total PMI	$ 37,878	7.3	%	6.1	%	6.5	%



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


													Schedule 5
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Gross Profit by Product Category to Adjusted Gross Profit, excluding Currency and Acquisitions / Divestitures
($ in millions) / (Unaudited)

Gross Profit	Special Items (1)	Adjusted Gross Profit	Currency	Adjusted Gross Profit excluding Currency	Acqui-sitions / Divestitures	Adjusted Gross Profit excl. Currency & Acquisitions / Divestitures	Quarters Ended December 31,	Gross Profit	Special Items (1)	Adjusted Gross Profit	Total		Excluding Currency		Excluding Currency & Acquisitions / Divestitures

2025								2024			% Change






$ 3,857	$ —	$ 3,857	$ 98	$ 3,759	$ —	$ 3,759	Combustible Tobacco	$ 3,657	$ —	$ 3,657	5.5	%	2.8	%	2.8	%













2025								2024			% Change
$ 2,946	$ (6)	$ 2,952	$ 118	$ 2,834	$ (17)	$ 2,850	Smoke-Free	$ 2,626	$ (5)	$ 2,631	12.2	%	7.7	%	8.3	%

2025								2024			% Change






$ 6,802	$ (6)	$ 6,808	$ 214	$ 6,594	$ (17)	$ 6,611	Total PMI	$ 6,283	$ (5)	$ 6,288	8.3	%	4.9	%	5.1	%

(1) 2025 fourth-quarter reflects amortization of intangibles in Smoke-free, all amounts are related to cost of goods sold. 2024 fourth-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.


													Schedule 6
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Gross Profit by Product Category to Adjusted Gross Profit, excluding Currency and Acquisitions / Divestitures
($ in millions) / (Unaudited)

Gross Profit	Special Items (1)	Adjusted Gross Profit	Currency	Adjusted Gross Profit excluding Currency	Acqui-sitions / Divestitures	Adjusted Gross Profit excl. Currency & Acquisitions / Divestitures	Years Ended December 31,	Gross Profit	Special Items (1)	Adjusted Gross Profit	Total		Excluding Currency		Excluding Currency & Acquisitions / Divestitures

2025								2024			% Change






$ 15,594	$ —	$ 15,594	$ 80	$ 15,514	$ 31	$ 15,483	Combustible Tobacco	$ 14,830	$ —	$ 14,830	5.2	%	4.6	%	4.4	%













2025								2024			% Change
$ 11,688	$ (22)	$ 11,710	$ 187	$ 11,523	$ (76)	$ 11,599	Smoke-Free	$ 9,719	$ (51)	$ 9,770	19.9	%	17.9	%	18.7	%

2025								2024			% Change






$ 27,282	$ (22)	$ 27,304	$ 267	$ 27,037	$ (45)	$ 27,082	Total PMI	$ 24,549	$ (51)	$ 24,600	11.0	%	9.9	%	10.1	%

(1) 2025 full-year reflects amortization of intangibles in Smoke-free, all amounts are related to cost of goods sold. 2024 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.


														Schedule 7


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	Acqui-sitions / Divestitures	Operating Income excluding Currency & Acquisitions / Divestitures				Operating Income		Total	Excluding Currency	Excluding Currency & Acquisitions / Divestitures

2025						Quarters Ended December 31,		2024		% Change
$ 1,910		$ 153	$ 1,757	$ 3	$ 1,754		Europe		$ 1,750			9.1	%	0.4	%	0.2	%
941		(71)	1,012	—	1,012		SSEA, CIS & MEA		806			16.7	%	25.6	%	25.6	%
514		(57)	571	—	571		EA, AU & PMI GTR		574			(10.5)	%	(0.5)	%	(0.5)	%
8		15	(7)	—	(7)		Americas		129			(93.8)	%	-(100)%		-(100)%
$ 3,373		$ 40	$ 3,333	$ 3	$ 3,330		Total PMI		$ 3,259			3.5	%	2.3	%	2.2	%

2025						Years Ended December 31,		2024		% Change
$ 7,165		$ 340	$ 6,825	$ 56	$ 6,769		Europe		$ 6,547			9.4	%	4.2	%	3.4	%
4,096		(60)	4,156	31	4,125		SSEA, CIS & MEA		3,429			19.5	%	21.2	%	20.3	%
3,126		(88)	3,214	—	3,214		EA, AU & PMI GTR		2,878			8.6	%	11.7	%	11.7	%
505		(38)	543	—	543		Americas		548			(7.8)	%	(0.9)	%	(0.9)	%
$ 14,892		$ 154	$ 14,738	$ 87	$ 14,651		Total PMI		$ 13,402			11.1	%	10.0	%	9.3	%


																Schedule 8


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	Adjusted Operating Income excluding Currency	Acqui-sitions / Divestitures	Adjusted Operating Income excluding Currency & Acquisitions / Divestitures			Operating Income	Special Items (1)	Adjusted Operating Income	Total	Excluding Currency	Excluding Currency & Acquisitions / Divestitures

2025							Quarters Ended December 31,		2024			% Change
$ 1,910	$ (146)		$ 2,056	$ 153	$ 1,903	$ 3	$ 1,900	Europe		$ 1,750	$ (45)	$ 1,795		14.5	%	6.0	%	5.8	%
941	(4)		944	(71)	1,015	—	1,015	SSEA, CIS & MEA		806	(4)	810		16.5	%	25.3	%	25.3	%
514	(1)		515	(57)	572	—	572	EA, AU & PMI GTR		574	(1)	575		(10.4)	%	(0.5)	%	(0.5)	%
8	(198)		207	15	192	—	192	Americas		129	(210)	339		(38.9)	%	(43.4)	%	(43.4)	%
$ 3,373	$ (349)		$ 3,722	$ 40	$ 3,682	$ 3	$ 3,679	Total PMI		$ 3,259	$ (260)	$ 3,519		5.8	%	4.6	%	4.5	%

2025							Years Ended December 31,		2024			% Change
$ 7,165	$ (745)		$ 7,909	$ 340	$ 7,569	$—	$ 7,569	Europe		$ 6,547	$ (432)	$ 6,979		13.3	%	8.5	%	8.5	%
4,096	(15)		4,111	(60)	4,171	31	4,140	SSEA, CIS & MEA		3,429	(63)	3,492		17.7	%	19.4	%	18.6	%
3,126	(3)		3,129	(88)	3,217	—	3,217	EA, AU & PMI GTR		2,878	(3)	2,881		8.6	%	11.7	%	11.7	%
505	(774)		1,279	(38)	1,317	—	1,317	Americas		548	(788)	1,336		(4.3)	%	(1.4)	%	(1.4)	%
$ 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	%

(1) See Schedule 9 and Schedule 10 for Special Items details
Note: Sum of special items might not foot due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million


											Schedule 9 (1 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)

	Quarters Ended December 31,		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	$ 3,373	$ 3,259	3.5	%	2.2	%	$ 114	$ 40	$ 3	$ 285	$ 75	$ (289)
Restructuring charges	2	(12)	+100%		+100%		14	—	—	—	—	14


Loss on sale of Vectura Group	—	(1)	100.0	%	100.0	%	1	—	—	—	—	1
Amortization of intangibles	(257)	(247)	(4.0)	%	(4.0)	%	(10)	—	—	—	—	(10)






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	$ 40	$ 3	$ 285	$ 75	$ (200)

Europe
Reported Operating Income	$ 1,910	$ 1,750	9.1	%	0.2	%	$ 160	$ 153	$ 3	$ 158	$ 30	$ (184)
Restructuring charges	1	—	—	%	—	%	1	—	—	—	—	1

Amortization of intangibles	(54)	(44)	(22.4)	%	(22.4)	%	(10)	—	—	—	—	(10)


Loss on sale of Vectura Group	—	(1)	100.0	%	100.0	%	1	—	—	—	—	1
Loss on expected sale of consumer accessories and other businesses	(94)	—	—	%	—	%	(94)	—	—	—	—	(94)
Adjusted Operating Income	$ 2,056	$ 1,795	14.5	%	5.8	%	$ 261	$ 153	$ 3	$ 158	$ 30	$ (83)

SSEA, CIS & MEA
Reported Operating Income	$ 941	$ 806	16.7	%	25.6	%	$ 135	$ (71)	$ —	$ 240	$ 26	$ (60)


Amortization of intangibles	(4)	(4)	16.4	%	16.4	%	1	—	—	—	—	1


Adjusted Operating Income	$ 944	$ 810	16.5	%	25.3	%	$ 134	$ (71)	$ —	$ 240	$ 26	$ (61)



											Schedule 9 (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)

	Quarters Ended December 31,		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	$ 514	$ 574	(10.5)	%	(0.5)	%	$ (60)	$ (57)	$ —	$ 13	$ (46)	$ 30

Amortization of intangibles	(1)	(1)	(0.1)	%	(0.1)	%	—	—	—	—	—	—



Adjusted Operating Income	$ 515	$ 575	(10.4)	%	(0.5)	%	$ (60)	$ (57)	$ —	$ 13	$ (46)	$ 30

Americas
Reported Operating Income	$ 8	$ 129	(93.8)	%	-(100)%		$ (121)	$ 15	$ —	$ (126)	$ 65	$ (75)
Restructuring charges	—	(12)	100.0	%	100.0	%	12	—	—	—	—	12
Amortization of intangibles	(198)	(198)	(0.1)	%	(0.1)	%	—	—	—	—	—	—



Adjusted Operating Income	$ 207	$ 339	(38.9)	%	(43.4)	%	$ (132)	$ 15	$ —	$ (126)	$ 65	$ (87)

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 10 (1 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)

	Years Ended December 31,		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	$ 14,892	$ 13,402	11.1	%	9.3	%	$ 1,490	$ 154	$ 87	$ 1,536	$ 1,084	$ (1,371)
Restructuring charges	(241)	(180)	(33.9)	%	(33.9)	%	(61)	—	—	—	—	(61)

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	—	(199)	100.0	%	100.0	%	199	—	—	—	—	199
Loss on expected sale of consumer accessories and other businesses	(94)	—	—	%	—	%	(94)	—	—	—	—	(94)
Germany excise tax classification litigation charge	(176)	—	—	%	—	%	(176)	—	—	—	—	(176)
RBH (Canada) Plan Implementation	19	—	—	%	—	%	19	—	—	—	—	19
Amortization of intangibles	(1,003)	(835)	(20.1)	%	(23.7)	%	(168)	—	30	—	—	(198)
Adjusted Operating Income	$ 16,428	$ 14,688	11.8	%	10.6	%	$ 1,740	$ 154	$ 31	$ 1,536	$ 1,084	$ (1,065)

Europe
Reported Operating Income	$ 7,165	$ 6,547	9.4	%	3.4	%	$ 618	$ 340	$ 56	$ 805	$ 127	$ (710)
Restructuring charges	(241)	—	—	%	—	%	(241)	—	—	—	—	(241)
Impairment of goodwill and other intangibles	(41)	(27)	(53.2)	%	-(100)%		(14)	—	27	—	—	(41)
Amortization of intangibles	(192)	(206)	6.9	%	(7.6)	%	14	—	30	—	—	(16)

Germany excise tax classification litigation charge	(176)	—	—	%	—	%	(176)	—	—	—	—	(176)
Loss on sale of Vectura Group	—	(199)	100.0	%	100.0	%	199	—	—	—	—	199
Loss on expected sale of consumer accessories and other businesses	(94)	—	—	%	—	%	(94)	—	—	—	—	(94)
Adjusted Operating Income	$ 7,909	$ 6,979	13.3	%	8.5	%	$ 930	$ 340	$ —	$ 805	$ 127	$ (340)

SSEA, CIS & MEA
Reported Operating Income	$ 4,096	$ 3,429	19.5	%	20.3	%	$ 667	$ (60)	$ 31	$ 836	$ 186	$ (326)



Amortization of intangibles	(15)	(18)	14.6	%	14.6	%	3	—	—	—	—	3
Egypt sales tax charge	—	(45)	100.0	%	100.0	%	45	—	—	—	—	45

Adjusted Operating Income	$ 4,111	$ 3,492	17.7	%	18.6	%	$ 619	$ (60)	$ 31	$ 836	$ 186	$ (374)



											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)

	Years Ended December 31,		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	$ 3,126	$ 2,878	8.6	%	11.7	%	$ 248	$ (88)	$ —	$ 81	$ 224	$ 31


Amortization of intangibles	(3)	(3)	0.2	%	0.2	%	—	—	—	—	—	—



Adjusted Operating Income	$ 3,129	$ 2,881	8.6	%	11.7	%	$ 248	$ (88)	$ —	$ 81	$ 224	$ 31











Americas
Reported Operating Income	$ 505	$ 548	(7.8)	%	(0.9)	%	$ (43)	$ (38)	$ —	$ (186)	$ 547	$ (366)
Restructuring charges	—	(180)	100.0	%	100.0	%	180	—	—	—	—	180

Amortization of intangibles	(792)	(608)	(30.3)	%	(30.3)	%	(184)	—	—	—	—	(184)
RBH (Canada) Plan Implementation	19	—	—	%	—	%	19	—	—	—	—	19


Adjusted Operating Income	$ 1,279	$ 1,336	(4.3)	%	(1.4)	%	$ (57)	$ (38)	$ —	$ (186)	$ 547	$ (380)

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 11


PHILIP 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 & Acqui-sitions / Divestitures (1)	Net Revenues excluding Currency & Acqui-sitions / Divestitures (2)	Adjusted Operating Income Margin excluding Currency & Acqui-sitions / Divestitures				Adjusted Operating Income (1)	Net Revenues (2)	Adjusted Operating Income Margin		Adjusted Operating Income Margin	Adjusted Operating Income Margin excluding Currency	Adjusted Operating Income Margin excluding Currency & Acqui-sitions / Divestitures

2025												Quarters Ended December 31,		2024				% Points Change
$ 2,056	$ 4,598	44.7	%	$ 1,903	$ 4,311	44.1	%	$ 1,900	$ 4,355	43.6	%		Europe	$ 1,795	$ 4,143	43.3	%	1.4	0.8	0.3
944	3,109	30.4	%	1,015	3,053	33.2	%	1,015	3,053	33.2	%		SSEA, CIS & MEA	810	2,868	28.2	%	2.2	5.0	5.0
515	1,425	36.1	%	572	1,448	39.5	%	572	1,448	39.5	%		EA, AU & PMI GTR	575	1,434	40.1	%	(4.0)	(0.6)	(0.6)
207	1,230	16.8	%	192	1,205	15.9	%	192	1,205	15.9	%		Americas	339	1,261	26.9	%	(10.1)	(11.0)	(11.0)
$ 3,722	$ 10,362	35.9	%	$ 3,682	$ 10,017	36.8	%	$ 3,679	$ 10,061	36.6	%		Total PMI	$ 3,519	$ 9,706	36.3	%	(0.4)	0.5	0.3

2025												Years Ended December 31,		2024				% Points Change
$ 7,909	$ 17,111	46.2	%	$ 7,569	$ 16,583	45.6	%	$ 7,569	$ 16,753	45.2	%		Europe	$ 6,979	$ 15,690	44.5	%	1.7	1.1	0.7
4,111	12,051	34.1	%	4,171	11,987	34.8	%	4,140	11,987	34.5	%		SSEA, CIS & MEA	3,492	11,261	31.0	%	3.1	3.8	3.5
3,129	6,632	47.2	%	3,217	6,685	48.1	%	3,217	6,685	48.1	%		EA, AU & PMI GTR	2,881	6,393	45.1	%	2.1	3.0	3.0
1,279	4,854	26.3	%	1,317	4,932	26.7	%	1,317	4,932	26.7	%		Americas	1,336	4,534	29.5	%	(3.2)	(2.8)	(2.8)
$ 16,428	$ 40,648	40.4	%	$ 16,274	$ 40,187	40.5	%	$ 16,243	$ 40,357	40.2	%		Total PMI	$ 14,688	$ 37,878	38.8	%	1.6	1.7	1.4


(1) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to Schedule 8
(2) For the calculation of Net Revenues excluding currency and acquisitions refer to Schedule 3 and 4


								Schedule 12
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Statements of Earnings
($ in millions, except per share data) / (Unaudited)

	Quarters Ended December 31,					Years Ended December 31,
	2025	2024	Change Fav./(Unfav.)			2025	2024	Change Fav./(Unfav.)


	$ 10,362	$ 9,706	6.8	%	Net Revenues	$ 40,648	$ 37,878	7.3	%
	3,560	3,423	(4.0)	%	Cost of sales	13,366	13,329	(0.3)	%
	6,802	6,283	8.3	%	Gross profit	27,282	24,549	11.1	%
	3,429	3,024	(13.4)	%	Marketing, administration and research costs	12,349	11,147	(10.8)	%
	—	—	—	%	Impairment of goodwill	41	—	—	%
	3,373	3,259	3.5	%	Operating Income	14,892	13,402	11.1	%
	218	326	33.1	%	Interest expense, net	966	1,143	15.5	%
	9	16	43.8	%	Pension and other employee benefit costs	46	60	23.3	%
	3,146	2,917	7.9	%	Earnings before income taxes	13,880	12,199	13.8	%
	675	872	22.6	%	Provision for income taxes	2,737	3,017	9.3	%
	—	2,316	100.0	%	Impairment related to the RBH equity investment	—	2,316	100.0	%
	221	215	(2.8)	%	Equity investments and securities (income)/loss, net	(705)	(637)	10.7	%
	2,250	(486)	+100%		Net Earnings	11,848	7,503	57.9	%
	109	93	(17.2)	%	Net Earnings attributable to noncontrolling interests	500	446	(12.1)	%
	$ 2,141	$ (579)	+100%		Net Earnings attributable to PMI	$ 11,348	$ 7,057	60.8	%

					Per share data: (1)
	$ 1.37	$ (0.38)	+100%		Basic Earnings Per Share	$ 7.27	$ 4.53	60.5	%
	$ 1.37	$ (0.38)	+100%		Diluted Earnings Per Share	$ 7.26	$ 4.52	60.6	%


(1) Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations for the quarters and full-year ended December 31, 2025 and 2024 are shown on Schedule 1, Footnote 1



				Schedule 13
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Balance Sheets
($ in millions) / (Unaudited)

	December 31,			December 31,
	2025			2024
Assets
Cash and cash equivalents		$	4,872		$	4,216
All other current assets		19,491			15,954
Property, plant and equipment, net		8,397			7,310
Goodwill		17,264			16,600
Other intangible assets, net		10,884			11,327
Equity investments		2,891			2,654
Other assets		5,386			3,723
Total assets		$	69,185		$	61,784

Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings		$	168		$	137
Current portion of long-term debt		3,533			3,392
All other current liabilities		21,726			19,386
Long-term debt		45,134			42,166
Deferred income taxes		2,065			2,517
Other long-term liabilities		4,587			4,056
Total liabilities		77,213			71,654

Total PMI stockholders' deficit		(9,994)			(11,750)
Noncontrolling interests		1,966			1,880
Total stockholders' (deficit) equity		(8,028)			(9,870)
Total liabilities and stockholders' (deficit) equity		$	69,185		$	61,784



							Schedule 14
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Calculation of Total Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA Ratios
($ in millions, except ratios) / (Unaudited)

	Year Ended December 31, 2025	Year Ended December 31, 2024


Net Earnings				$	11,848			$	7,503
Equity investments and securities (income)/loss, net				(705)				(637)
Provision for income taxes				2,737				3,017
Interest expense, net				966				1,143
Impairment related to the RBH equity investment				—				2,316
Depreciation, amortization and impairment of goodwill and other intangibles				2,037				1,814
Restructuring charges and Others (1)				492				424
Adjusted EBITDA				$ 17,375				$	15,580

			December 31,			December 31,
			2025			2024
Short-term borrowings				$	168			$	137
Current portion of long-term debt				3,533				3,392
Long-term debt				45,134				42,166
Total Debt				$	48,835			$	45,695
Cash and cash equivalents				4,872				4,216
Net Debt				$	43,963			$	41,479

Ratios:
Total Debt to Adjusted EBITDA				2.81				2.93
Net Debt to Adjusted EBITDA				2.53				2.66

(1) For the year ended December 31 2025 "Others" includes Germany excise tax classification litigation charge ($176 million), loss on expected sale of consumer accessories and other businesses ($94 million), partially offset by RBH (Canada) Plan Implementation ($19 million). For the year ended December 31 2024 "Others" includes loss on sale of Vectura Group ($199 million) and Egypt sales tax charge ($45 million).



							Schedule 15
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Operating Cash Flow to Operating Cash Flow, excluding Currency
($ in millions) / (Unaudited)

Quarters Ended December 31,					Years Ended December 31,
2025	2024	% Change			2025	2024	% Change
$ 4,709	$ 4,002	17.7	%	Net cash provided by operating activities (1)	$ 12,233	$ 12,217	0.1	%
154				Less: Currency	485
$ 4,555	$ 4,002	13.8	%	Net cash provided by operating activities, excluding currency	$ 11,748	$ 12,217	(3.8)	%

(1) Operating cash flow

Source: View Original Filing on SEC EDGAR

FAQ

How did Philip Morris International (PM) perform financially in 2025?

Philip Morris International delivered higher 2025 net revenues of $40.6 billion, up 7.3% from 2024. Reported diluted EPS rose to $7.26 from $4.52, while adjusted diluted EPS increased to $7.54, reflecting 14.8% growth and stronger operating profitability.

How fast is Philip Morris International’s smoke-free business growing in 2025?

PMI’s smoke-free business generated $16.9 billion in 2025 net revenues, growing 15.0% year over year. Smoke-free products made up 41.5% of total net revenues and nearly 43% of gross profit, with heated tobacco unit volumes up 11.0% and nicotine pouch shipments up 36.6%.

What were Philip Morris International’s 2025 fourth-quarter results?

In fourth-quarter 2025, PMI reported net revenues of $10.4 billion, up 6.8% versus Q4 2024. Reported diluted EPS was $1.37, and adjusted diluted EPS reached $1.70, increasing 9.7%. Smoke-free net revenues grew 12.0% in the quarter, outpacing combustibles.

What dividend did Philip Morris International declare with these 2025 results?

PMI declared a regular quarterly dividend of $1.47 per share, equivalent to an annualized $5.88 per share. This reflects the company’s ongoing capital return approach alongside higher earnings and growing contributions from its global smoke-free product portfolio.

How did Philip Morris International’s profit margins change in 2025?

PMI’s adjusted operating income increased to $16.4 billion in 2025, up 11.8% from 2024, lifting the adjusted operating margin to 40.4% from 38.8%. Gross profit also grew 11.1% to $27.3 billion, supported by smoke-free growth and pricing in combustibles.

What is Philip Morris International’s debt and leverage position at year-end 2025?

At December 31, 2025, PMI had $48.8 billion of total debt and $4.9 billion of cash, resulting in net debt of $44.0 billion. Using adjusted EBITDA of $17.4 billion, total debt-to-adjusted EBITDA was 2.81 times and net debt-to-adjusted EBITDA was 2.53 times.

How are traditional combustible products performing versus smoke-free at Philip Morris International?

In 2025, combustibles generated $23.8 billion in net revenues, growing 2.5%, with gross profit up 5.2%. In contrast, smoke-free net revenues grew 15.0% to $16.9 billion, with gross profit up 20.3%, shifting PMI’s earnings mix toward reduced-risk products.

Philip Morris (NYSE: PM) 2025 EPS surges as smoke-free sales accelerate

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Philip Morris (NYSE: PM) 2025 EPS surges as smoke-free sales accelerate

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How are traditional combustible products performing versus smoke-free at Philip Morris International?

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