Philip Morris (PM) Q4 2025 Earnings Transcript

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Friday, Feb. 6, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Jacek Olczak

• Chief Financial Officer — Emmanuel Babeau

Jacek Olczak: Thank you, James, and welcome, everyone. 2025 was different outstanding twelvemonth for PMI. The displacement of big smokers to amended alternatives is simply a lasting structural movement, 1 that we proceed to pb and from which we are generating beardown sustained growth. Our starring planetary presumption successful smoke-free products enables america to present a 5th consecutive twelvemonth of affirmative volumes with accelerated top-line advancement and important borderline expansion. We grew our smoke-free products volumes by an fantabulous 12.8% with the expanding profitability of the portfolio, reflecting inorganic smoke-free gross nett maturation of 18.7%. IQOS remains the halfway operator with some shipments and adjusted IMS increasing astir 11%.

This includes an awesome acceleration successful the 4th fourth with a instrumentality to beardown double-digit maturation successful Italy, and a precise promising commencement successful Taiwan, conscionable 2 examples of the wide maturation crossed geographies. This show besides reflects the occurrence of our multi-category strategy with Bonsin, ex Nordics, and Viiv much than doubling shipment volumes successful planetary markets. Our beardown marque offering, which includes high-quality science-backed products successful each 3 smoke-free products categories, allows america to amended service consumers and heighten our fiscal performance. While the nicotine pouch class remains nascent successful astir geographies, Zen gained important planetary stock arsenic we expanded the merchandise portfolio and marketplace reach.

The much established e-vapor class VIVE is the fastest increasing marque of immoderate large subordinate successful planetary closed pots and holds the fig 1 presumption successful 8 markets with important summation successful gross profit. Although our show continues to beryllium fueled by the planetary business, we generated the immense bulk of full PMI integrated nett gross maturation led by SFPs. We person a important accidental successful the US wherever ZYN grew shipment by 37% contempt proviso constraints successful the archetypal half, a important terms premium, and the competitory portfolio gaps. Our Aspire Wellness Business besides grew integrated nett strongly. Combustibles delivered robust apical and bottommost enactment performance, notwithstanding a much normalized manufacture measurement diminution and proviso concatenation issues successful Turkey.

We accomplished this done beardown pricing, portfolio resilience, and disciplined execution, with Marlborough reaching a historical precocious share. Managing this concern responsibly enables america to put boldly successful amended alternatives and prolong our smoke-free momentum. Together, these factors enabled america to present 15% adjusted diluted EPS maturation successful dollar terms, the strongest maturation since 2011, excluding the pandemic betterment twelvemonth of 2021. This reflects currency-neutral maturation of 14% good supra our expectations astatine the commencement of the year, and the 2nd twelvemonth of mid-teens progress. Indeed, we person successfully achieved our three-year CAGR targets for integrated OI and currency-neutral EPS successful 2 years.