Philip Morris International (PMI) reported robust financial results for the second quarter of 2025, with total net revenues reaching $10.14 billion, a 7.1% increase compared to the same period last year. Adjusted diluted earnings per share (EPS) rose 20.1% to $1.91, while reported diluted EPS increased 26.6% to $1.95.
The company’s smoke-free product (SFP) segment delivered particularly strong performance, with net revenues up 15.2% and gross profit rising 23.3%. Despite a 1.5% decline in combustible cigarette shipments, revenue from the combustibles segment grew 2.1%, driven by effective pricing strategies. Gross profit from combustibles rose 5.0%.
PMI declared a quarterly dividend of $1.35 per share, or $5.40 on an annualized basis, and raised its full-year earnings guidance. The company now expects adjusted diluted EPS to grow between 13% and 15% for the full year 2025.
Key Q2 2025 Figures
Net revenues: $10.14 billion (+7.1% YoY)
Reported diluted EPS: $1.95 (+26.6%)
Adjusted diluted EPS: $1.91 (+20.1%)
Smoke-free product revenue: $4.2 billion (+15.2%, 41% of total)
Combustible product revenue: $6.0 billion (+2.1%)
Operating income: $3.71 billion (+7.8%)
Quarterly dividend: $1.35 per share (annualized: $5.40)
Smoke-Free Product Highlights
PMI’s smoke-free portfolio accounted for 41% of net revenues and over 42% of gross profit. Shipment volume rose 11.8% from a year ago. IQOS, PMI’s flagship heat-not-burn product, surpassed $3 billion in quarterly revenues and reached a 9.2% share of global cigarette and HTU volumes.
IQOS HTU shipment volume reached 38.8 billion units (+9.2% YoY), with adjusted market share in Japan rising to 31.7%, and in Europe to 10.9%.
Nicotine pouch shipments rose to 214.7 million cans globally (+43.3%), including 191.3 million in the Americas. Snus shipments totaled 59.6 million cans (+1.4%).
VEEV, PMI’s e-vapor brand, more than doubled its global shipment volume. It is now sold in 42 markets and ranks first in closed-pod sales in six European countries, including Greece and Italy.
Combustibles Segment
Cigarette shipments declined 1.5% to 155.2 billion units. However, revenue in this segment grew 2.1%, supported by favorable pricing. Gross profit increased 5.0%.
Regional Performance
Europe: shipment volume down 1.7%, smoke-free shipments up 11.7%
Southeast Asia, CIS, Middle East: shipments up 1.2%, smoke-free up 14.8%
East Asia, Australia, and Global Travel Retail: shipments up 4.1%, smoke-free up 7.2%
Americas: shipments up 6.2%, smoke-free up 30.2%
Outlook
PMI reaffirmed its commitment to transitioning away from combustible tobacco. The company aims to reduce cigarette volumes and accelerate adoption of smoke-free alternatives across markets.
For full-year 2025, PMI forecasts adjusted diluted EPS of $7.43 to $7.56, representing growth of 13% to 15%. It expects organic net revenue to grow 6% to 8% and smoke-free product shipments to rise by 12% to 14%.
