Philip Morris International (PMI) on Friday reported a strong set of full-year results for 2025, driven by rapid growth across its smoke-free portfolio, with the business now accounting for more than two-fifths of total company revenues.
The tobacco major delivered reported diluted earnings per share (EPS) of $7.26 (£5.34) for 2025, up sharply from $4.52 in 2024, while adjusted diluted EPS rose 14.8 per cent to $7.54. Total net revenues climbed 7.3 per cent year on year to $40.6 billion, supported by higher pricing and accelerating volumes in smoke-free products.
Smoke-free products generated $16.9bn in net revenues during the year, representing 41.5 per cent of PMI’s total, with shipment volumes up 12.8 per cent. Gross profit from the smoke-free business increased by more than 20 per cent, underlining the company’s ongoing pivot away from combustible cigarettes. PMI said its smoke-free products are now available in 106 markets worldwide and are used by an estimated 43 million adult consumers.
Heat-not-burn continued to be the main growth engine, with IQOS maintaining around 76 per cent share of the global category. Full-year heated tobacco unit volumes rose 11 per cent, while PMI highlighted strong momentum across Europe, including double-digit growth in markets such as Italy, Germany and Spain. Oral smoke-free products also posted robust gains, with shipment volumes up 18.5 per cent for the year, fuelled by rapid expansion in nicotine pouches.
In the US, PMI’s ZYN nicotine pouch brand continued to lead the category, accounting for around two-thirds of value share, with full-year shipments reaching 794 million cans. Internationally, ZYN is now available in 55 markets, as PMI accelerates rollout of its oral portfolio.
PMI also highlighted accelerating momentum in its e-vapor portfolio, with VEEV shipment volumes more than doubling over the full year, driven largely by growth in Europe and Indonesia. The brand is now available in 47 markets and holds the number-one volume share position in eight of them within the closed-pod segment.
PMI said VEEV continues to gain share primarily from adult smokers and existing vapers, as it focuses on building the brand in a “responsible and profitable manner” as part of its wider smoke-free strategy.
Despite ongoing volume declines in traditional cigarettes, PMI said strong pricing helped drive a 2.5 per cent increase in combustible net revenues for the year, with Marlboro reaching a record 11 per cent category share globally.
Group chief executive Jacek Olczak said 2025 marked “another remarkable year of results”, highlighting a fifth consecutive year of volume growth and net revenues surpassing $40bn. He added that close to $17bn now comes from smoke-free products, with operating margins continuing to expand.
“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,” he added.
PMI forecast adjusted diluted EPS of between $8.38 and $8.53 for 2026, representing growth of 11.1 per cent to 13.1 per cent on a reported basis. The company also unveiled new medium-term targets for 2026–2028, aiming for organic net revenue growth of 6 per cent to 8 per cent and adjusted EPS growth of 9 per cent to 11 per cent, driven primarily by high single-digit to low-teens growth in smoke-free volumes.