Philip Morris International (PM) Q3 2025 Financial Results Summary
STAMFORD, CT, October 21, 2025 – Philip Morris International Inc. (PMI) (NYSE: PM) today announces its 2025 third quarter results.
Results Highlights – Third Quarter 2025
- Overall Performance:
- Reported diluted EPS grew by 13.2% to $2.23.
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Adjusted diluted EPS increased by 17.3% to $2.24; adjusted diluted EPS, excluding currency impact, increased by 13.1% to $2.16.
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Smoke-Free Business (SFB):
- SFB accounted for 41% of total net revenues, an increase of 2.9 percentage points (pp) versus Q3 last year.
- Over 42% of total gross profit came from SFB, increasing by 2.5 pp vs. Q3 last year.
- Shipment volumes for smoke-free products grew by 16.6%.
- Net revenues for SFB grew by 17.7% (or 13.9% organically).
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Gross profit rose by 19.5% (or 14.8% organically).
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Inhalable Smoke-free Products:
- IQOS, the primary heat-not-burn brand, gained 0.9 pp in market share to reach 9.1% globally.
- Japan saw adjusted IMS growth of 6.0%, maintaining 31.7% market share in the HTU category.
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In Europe, adjusted IMS reached 15 billion units, growing by 7.3%.
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E-vapor Products:
- VEEV demonstrated significant growth in shipment volumes, up by 91.0%.
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VEEV holds top 3 position in 15 markets, including number 1 in 8 markets.
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Oral SFP:
- Shipment volumes increased by 16.9% for pouches (or 20.2% in cans).
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ZYN, the nicotine pouch leading brand, accelerated offtake growth by 39%.
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Combustibles:
- Cigarette net revenues grew 4.3% (a 1.0% organic increase).
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Average pricing for combustibles contributed to this growth despite a 3.2% decline in shipment volume.
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Dividend:
- PMI increased regular quarterly dividend by 8.9% to $1.47 per share, annualized to $5.88.
Performance Highlights – First Nine Months 2025
- Total Shipment Volume:
- Total shipment volume increased by 1.8%.
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SFB volumes rose by 14.3%, while combustible cigarette volumes decreased by 1.3%.
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Net Revenues:
- Total net revenues reached $30.3 billion, a 7.5% increase from YTD 2024.
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Organic net revenue growth was also 7.5%.
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Operating Income:
- Total operating income rose by 13.6% to $11.5 billion.
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Adjusted operating income increased by 13.8% for YTD 2025.
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Values and Margins:
- Adjusted OI margin stood at 42.0%, an increase of 2.4 pp compared to YTD 2024.
Full-Year Forecast and Guidance
- PMI expects reported diluted EPS for 2025 to be in the range of $7.39 to $7.49, implying growth of 63% to 65% compared to prior year.
- Adjusted diluted EPS for the full year is projected to be $7.46 to $7.56, marking a 13.5% to 15.1% increase versus adjusted diluted EPS of $6.57 in 2024.
Summary
Philip Morris International’s third quarter results reflect a strong performance driven by its expanding smoke-free product line, alongside growth in oral nicotine products. The company has also enhanced its dividend, illustrating confidence in future cash flows amidst ongoing investment in its smoke-free product initiatives.
Condensed Consolidated Statements of Income (in millions)
| 2025 | 2024 | Change | Change | ||
|---|---|---|---|---|---|
| Net Revenues | $30,286 | $28,172 | 7.5% | ||
| Cost of Sales | $(9,806) | $(9,906) | 1.0% | ||
| Operating Income | $11,519 | $10,143 | 13.6% | ||
| Adjusted Operating Income | $12,706 | $11,169 | 13.8% |
Condensed Consolidated Balance Sheets (in millions)
| 2025 | 2024 | ||
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash and Cash Equivalents | $8,789 | $7,640 | |
| Accounts Receivable | $4,769 | $4,375 | |
| Inventories | $6,567 | $7,182 | |
| Total Current Assets | $20,125 | $19,197 | |
| Non-Current Assets | |||
| Property, Plant and Equipment | $11,941 | $12,098 | |
| Intangible Assets | $12,065 | $9,663 | |
| Total Assets | $52,131 | $49,436 |
Note: As per the provided data, the tables above represent the extracted Income Statement and Balance Sheet with their respective amounts indicated as either “in millions”. The format and column widths have been maintained as specified.
