Price Without VolumeWide moat

Philip Morris International (PM) — moat facet

PMI sold fewer cigarettes in 2025 than in 2023 and earned 11% more gross profit on them.

The cigarette moat shows itself most clearly in price. International Combustibles net revenues rose from $21,903 million in 2023 to $22,807 million in 2024 and $23,436 million in 202512, up 7.0% over two years3, while PMI's cigarette shipments fell 0.9% over the same period45. Revenue grew with fewer cigarettes sold.

International Combustibles gross profit ($M)13,972202314,687202415,5232025PMI recast schedules, 8-K March 2026
Up 11% in two years on falling volume.

Gross profit grew faster still. The segment's gross profit rose from $13,972 million in 2023 to $15,523 million in 202567, up 11.1%8, and its adjusted gross margin was 66.2% in 20259. In the second quarter of 2026 segment revenue rose 9.8%, 6.4% organically, to $6,459 million10.

Pricing power of this kind comes from addiction, brand loyalty and a market that regulation has frozen. Smokers rarely quit because of a price rise of a few percent, new entrants cannot advertise, and the incumbents raise prices together. Excise increases, which governments impose on everyone, often provide the cover for a company's own increase.

The limit is what the smoker can bear. Price rises in markets with high excise push some smokers to cheaper brands, illicit supply or quitting, and in PMI's case to IQOS, which the company welcomes.

The combustibles moat is wide as long as price outruns volume. The spread between segment revenue growth and cigarette volume growth is the test; organic revenue growth of 6.4% in the second quarter of 202611 against a volume forecast of minus 2% to 3%12 says it is intact, and a spread below three points would say it is wearing out.

Moat trajectory: Holding steady

Organic combustible revenue +6.4% in Q2 2026 on flat to falling volume.

The number that tests this moat
Reported
International Combustibles gross profit, latest quarter
$4,388M, from $3,936M (Q2 2026)

Pricing power in the cash engine; gross profit falling while prices rise would mean smokers have stopped absorbing the increases.

Source: PMI Form 10-Q, Q2 2026 ↗
⚠ Threats to the moat
⚠ THREAT 01
Currency: The Price Cut Nobody Chose
Currency cost PMI 77 cents of adjusted earnings per share in 2022 and has added 24 cents in 2026, a swing larger than most price rises.
References
  1. ReportedInternational Combustibles net revenues rose from $21,903 million in 2023 to $22,807 million in 2024 and $23,436 million in 2025, up 7.0% over two years, while PMI's cigarette shipments fell 0.9% over the same period.
    Philip Morris International Form 8-K exhibit 99.2 - 2024 and 2023 results recast into the new segments. — FY2024 · publ. 13 March 2026 · source ↗
  2. ReportedInternational Combustibles net revenues rose from $21,903 million in 2023 to $22,807 million in 2024 and $23,436 million in 2025, up 7.0% over two years, while PMI's cigarette shipments fell 0.9% over the same period.
    Philip Morris International Form 8-K exhibit 99.1 - 2025 and 2024 results recast into the new segments International Smoke-Free, International Combustibles and U.S. — FY2025 · publ. 13 March 2026 · source ↗
  3. Moat Explorer calcInternational Combustibles net revenues rose from $21,903 million in 2023 to $22,807 million in 2024 and $23,436 million in 2025, up 7.0% over two years, while PMI's cigarette shipments fell 0.9% over the same period.
    Moat Explorer calculation from Philip Morris International's reported figures ($ millions unless stated). Excise and revenue 2025: 53,211 / 40,648 = 1.31 dollars of excise per dollar of net revenue; gross of excise 53,211 + 40,648 = 93,859, excise share 53,211 / 93,859 = 56.7%; excise growth 2023-2025 53,211 / 49,404 - 1 = 7.7% against net revenue growth 40,648 / 35,174 - 1 = 15.6%. Product mix 2025: smoke-free 16,854 / 40,648 = 41.5%; combustible 23,794 / 40,648 = 58.5%; smoke-free 2023 12,840 / 35,174 = 36.5%, 2024 14,660 / 37,878 = 38.7%; smoke-free growth 2023-2025 16,854 / 12,840 - 1 = 31.3%; smoke-free revenue 2016 733 to 2025 16,854 = 23 times. Segments 2025: International Smoke-Free 13,996 / 40,648 = 34.4%; International Combustibles 23,436 / 40,648 = 57.7%; U.S. 3,216 / 40,648 = 7.9%; recast gross profit shares 9,576 / 27,304 = 35.1%, 15,523 / 27,304 = 56.9%, 2,206 / 27,304 = 8.1%. Growth 2025: ISF 13,996 / 12,126 - 1 = 15.4%; IC 23,436 / 22,807 - 1 = 2.8%; U.S. 3,216 / 2,944 - 1 = 9.2%. Growth 2024: ISF 12,126 / 11,102 - 1 = 9.2%; IC 22,807 / 21,903 - 1 = 4.1%; U.S. 2,944 / 2,169 - 1 = 35.7%. IC gross profit 15,523 / 13,972 - 1 = 11.1% against IC revenue 23,436 / 21,903 - 1 = 7.0% (2023-2025). Recast reported gross margins 2023: ISF 7,021 / 11,102 = 63.2%, IC 13,972 / 21,903 = 63.8%; 2024: ISF 7,831 / 12,126 = 64.6%, IC 14,687 / 22,807 = 64.4%. Segment sum 2024 12,126 + 22,807 + 2,944 = 37,877 against 37,878 reported. IC shares of net revenues 21,903 / 35,174 = 62.3% (2023), 22,807 / 37,878 = 60.2% (2024). U.S. revenue 3,216 / 2,169 - 1 = 48.3% (2023-2025). Q2 2026 shares: ISF 3,877 / 11,192 = 34.6%, IC 6,459 / 11,192 = 57.7%, U.S. 856 / 11,192 = 7.6%. U.S. gross margin Q2 2026 555 / 856 = 64.8% against 611 / 862 = 70.9%. Swedish Match: 14,460 + 1,495 + 883 = 16,838 total cash paid; U.S. adjusted operating companies income 1,124 / 16,838 = 6.7% pre-tax; reported U.S. OCI 322 / 3,216 = 10.0% of U.S. revenue; adjusted 1,124 / 3,216 = 35.0%. Goodwill and other intangibles 17,264 + 10,884 = 28,148, 28,148 / 69,185 = 40.7% of total assets. Volumes: cigarettes 607,367 / 616,827 - 1 = -1.5% (2025), 607,367 / 612,949 - 1 = -0.9% (2023-2025); heated tobacco units 155,133 / 139,743 - 1 = 11.0% (2025), 139,743 / 125,263 - 1 = 11.6% (2024); HTUs 155,133 / (607,367 + 155,133) = 20.3% of cigarette plus HTU shipments. U.S. ZYN cans 793.7 / 384.8 = 2.06 times (2023-2025), 793.7 / 580.5 - 1 = 36.7% (2025); international nicotine pouches 879.6 - 793.7 = 85.9 million cans (2025), 644.0 - 580.5 = 63.5 (2024); snus 227.9 / 240.4 - 1 = -5.2% (2023-2025); e-vapor 3,330 / 1,651 = 2.0 times. U.S. segment: cigars 358 / 410 - 1 = -12.7%, 358 / 431 - 1 = -16.9% (2023-2025); wellness 238 / 333 - 1 = -28.5%. Cash and dividends: free cash flow 12,233 - 1,569 = 10,664 (2025), 12,217 - 1,444 = 10,773 (2024), 9,204 - 1,321 = 7,883 (2023); dividends paid / free cash flow 8,624 / 10,664 = 80.9% (2025), 8,197 / 10,773 = 76.1% (2024), 7,964 / 7,883 = 101.0% (2023). Payout of declared dividends per share over diluted EPS: 5.64 / 7.26 = 77.7% (2025), 5.30 / 4.52 = 117.3% (2024), 5.14 / 5.02 = 102.4% (2023); over adjusted EPS 5.64 / 7.54 = 74.8%. Annualised dividend 1.60 x 4 = 6.40; 6.40 / 5.64 = 1.13; dividend 5.64 / 1.54 = 3.7 times since 2008; yield 6.40 / 190.48 = 3.4%. R&D 756 / 40,648 = 1.9% of revenue; capex 1,569 / 40,648 = 3.9%. Customers: two customers 12% + 10% = 22% of 2025 net revenues; related-party revenue 4,582 / 40,648 = 11.3%; Megapolis 2,805 / 40,648 = 6.9%; Megapolis growth 2,805 / 2,393 - 1 = 17.2%. Japan 4.2 / 40.6 = 10.3% of net revenues. Canada: RBH carrying value 3,280 fair value at deconsolidation to 51 at 30 June 2026; impairments 2,316 + 511 = 2,827. Valuation: trailing twelve months to June 2026 revenue 40,648 + 21,338 - 19,441 = 42,545; net earnings 11,348 + 5,255 - 5,729 = 10,874; P/E 296.88 / 10.874 = 27.3; P/S 296.88 / 42.545 = 6.98; 2018 P/E 103.78 / 7.911 = 13.1; 2025 P/E 249.68 / 11.348 = 22.0; free cash flow yield 10,664 / 296,880 = 3.6%. Other PMI cigarette brands: 25.4 - 9.8 = 15.6% (2023), 25.3 - 10.7 = 14.6% (2025), a loss of 1.0 point against Marlboro's gain of 0.9. Excise Q2 2026 14,973 / 13,272 - 1 = 12.8% against net revenues 11,192 / 10,140 - 1 = 10.4%. U.S. smoke-free H1 1,584 - 1,311 = 273 decline. ISF H1 2026 gross margin 5,400 / 7,713 = 70.0%. Gross margin 2025 27,282 / 40,648 = 67.1%. ROIC average 2015-2025 (45.6 + 50.2 + 43.4 + 50.7 + 48.7 + 52.1 + 57.2 + 40.6 + 26.8 + 28.6 + 32.5) / 11 = 43.3%. Employees 84,900 - 82,700 = 2,200 (2023-2025); net revenues 40,648 - 35,174 = 5,474, about 5.5 billion. Snus 240.4 - 227.9 = 12.5 million cans. Europe smoke-free 8,127 / 16,854 = 48.2%, about half. Cigarette decline 2% to 3% of 607,367 = 12,147 to 18,221 million units. Operating cash flow over R&D 12,233 / 756 = 16.2 times. Blocked markets 440 / 2,587 = 17%, about a sixth. Market cap against peers 296.88 / 119.41 = 2.5 times British American Tobacco; 296.88 / 114.91 = 2.6 times Altria. Net debt to adjusted EBITDA 43,963 / 17,375 = 2.53. Interest 966 / 14,892 = 6.5% of operating income. Guidance midpoints: (8.35 + 8.50) / 2 = 8.43, reported (7.28 + 7.43) / 2 = 7.36, gap 8.43 - 7.36 = 1.07; earlier adjusted midpoints (8.38 + 8.53) / 2 = 8.46, (8.31 + 8.46) / 2 = 8.39, (8.26 + 8.41) / 2 = 8.34; 8.43 / 7.54 - 1 = 11.8% - growth rates, volumes, margins and excise. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in PMI's Forms 10-K and 10-Q, the recast segment schedules, results releases and market data; operands shown in the source line.
  4. ReportedInternational Combustibles net revenues rose from $21,903 million in 2023 to $22,807 million in 2024 and $23,436 million in 2025, up 7.0% over two years, while PMI's cigarette shipments fell 0.9% over the same period.
    Philip Morris International Form 10-K for fiscal 2025 - financial statements and notes: income statement, excise, cash flow, debt, acquisitions and impairments. — FY2025 · publ. 6 February 2026 · source ↗
  5. Moat Explorer calcInternational Combustibles net revenues rose from $21,903 million in 2023 to $22,807 million in 2024 and $23,436 million in 2025, up 7.0% over two years, while PMI's cigarette shipments fell 0.9% over the same period.
    Moat Explorer calculation from Philip Morris International's reported figures ($ millions unless stated). Excise and revenue 2025: 53,211 / 40,648 = 1.31 dollars of excise per dollar of net revenue; gross of excise 53,211 + 40,648 = 93,859, excise share 53,211 / 93,859 = 56.7%; excise growth 2023-2025 53,211 / 49,404 - 1 = 7.7% against net revenue growth 40,648 / 35,174 - 1 = 15.6%. Product mix 2025: smoke-free 16,854 / 40,648 = 41.5%; combustible 23,794 / 40,648 = 58.5%; smoke-free 2023 12,840 / 35,174 = 36.5%, 2024 14,660 / 37,878 = 38.7%; smoke-free growth 2023-2025 16,854 / 12,840 - 1 = 31.3%; smoke-free revenue 2016 733 to 2025 16,854 = 23 times. Segments 2025: International Smoke-Free 13,996 / 40,648 = 34.4%; International Combustibles 23,436 / 40,648 = 57.7%; U.S. 3,216 / 40,648 = 7.9%; recast gross profit shares 9,576 / 27,304 = 35.1%, 15,523 / 27,304 = 56.9%, 2,206 / 27,304 = 8.1%. Growth 2025: ISF 13,996 / 12,126 - 1 = 15.4%; IC 23,436 / 22,807 - 1 = 2.8%; U.S. 3,216 / 2,944 - 1 = 9.2%. Growth 2024: ISF 12,126 / 11,102 - 1 = 9.2%; IC 22,807 / 21,903 - 1 = 4.1%; U.S. 2,944 / 2,169 - 1 = 35.7%. IC gross profit 15,523 / 13,972 - 1 = 11.1% against IC revenue 23,436 / 21,903 - 1 = 7.0% (2023-2025). Recast reported gross margins 2023: ISF 7,021 / 11,102 = 63.2%, IC 13,972 / 21,903 = 63.8%; 2024: ISF 7,831 / 12,126 = 64.6%, IC 14,687 / 22,807 = 64.4%. Segment sum 2024 12,126 + 22,807 + 2,944 = 37,877 against 37,878 reported. IC shares of net revenues 21,903 / 35,174 = 62.3% (2023), 22,807 / 37,878 = 60.2% (2024). U.S. revenue 3,216 / 2,169 - 1 = 48.3% (2023-2025). Q2 2026 shares: ISF 3,877 / 11,192 = 34.6%, IC 6,459 / 11,192 = 57.7%, U.S. 856 / 11,192 = 7.6%. U.S. gross margin Q2 2026 555 / 856 = 64.8% against 611 / 862 = 70.9%. Swedish Match: 14,460 + 1,495 + 883 = 16,838 total cash paid; U.S. adjusted operating companies income 1,124 / 16,838 = 6.7% pre-tax; reported U.S. OCI 322 / 3,216 = 10.0% of U.S. revenue; adjusted 1,124 / 3,216 = 35.0%. Goodwill and other intangibles 17,264 + 10,884 = 28,148, 28,148 / 69,185 = 40.7% of total assets. Volumes: cigarettes 607,367 / 616,827 - 1 = -1.5% (2025), 607,367 / 612,949 - 1 = -0.9% (2023-2025); heated tobacco units 155,133 / 139,743 - 1 = 11.0% (2025), 139,743 / 125,263 - 1 = 11.6% (2024); HTUs 155,133 / (607,367 + 155,133) = 20.3% of cigarette plus HTU shipments. U.S. ZYN cans 793.7 / 384.8 = 2.06 times (2023-2025), 793.7 / 580.5 - 1 = 36.7% (2025); international nicotine pouches 879.6 - 793.7 = 85.9 million cans (2025), 644.0 - 580.5 = 63.5 (2024); snus 227.9 / 240.4 - 1 = -5.2% (2023-2025); e-vapor 3,330 / 1,651 = 2.0 times. U.S. segment: cigars 358 / 410 - 1 = -12.7%, 358 / 431 - 1 = -16.9% (2023-2025); wellness 238 / 333 - 1 = -28.5%. Cash and dividends: free cash flow 12,233 - 1,569 = 10,664 (2025), 12,217 - 1,444 = 10,773 (2024), 9,204 - 1,321 = 7,883 (2023); dividends paid / free cash flow 8,624 / 10,664 = 80.9% (2025), 8,197 / 10,773 = 76.1% (2024), 7,964 / 7,883 = 101.0% (2023). Payout of declared dividends per share over diluted EPS: 5.64 / 7.26 = 77.7% (2025), 5.30 / 4.52 = 117.3% (2024), 5.14 / 5.02 = 102.4% (2023); over adjusted EPS 5.64 / 7.54 = 74.8%. Annualised dividend 1.60 x 4 = 6.40; 6.40 / 5.64 = 1.13; dividend 5.64 / 1.54 = 3.7 times since 2008; yield 6.40 / 190.48 = 3.4%. R&D 756 / 40,648 = 1.9% of revenue; capex 1,569 / 40,648 = 3.9%. Customers: two customers 12% + 10% = 22% of 2025 net revenues; related-party revenue 4,582 / 40,648 = 11.3%; Megapolis 2,805 / 40,648 = 6.9%; Megapolis growth 2,805 / 2,393 - 1 = 17.2%. Japan 4.2 / 40.6 = 10.3% of net revenues. Canada: RBH carrying value 3,280 fair value at deconsolidation to 51 at 30 June 2026; impairments 2,316 + 511 = 2,827. Valuation: trailing twelve months to June 2026 revenue 40,648 + 21,338 - 19,441 = 42,545; net earnings 11,348 + 5,255 - 5,729 = 10,874; P/E 296.88 / 10.874 = 27.3; P/S 296.88 / 42.545 = 6.98; 2018 P/E 103.78 / 7.911 = 13.1; 2025 P/E 249.68 / 11.348 = 22.0; free cash flow yield 10,664 / 296,880 = 3.6%. Other PMI cigarette brands: 25.4 - 9.8 = 15.6% (2023), 25.3 - 10.7 = 14.6% (2025), a loss of 1.0 point against Marlboro's gain of 0.9. Excise Q2 2026 14,973 / 13,272 - 1 = 12.8% against net revenues 11,192 / 10,140 - 1 = 10.4%. U.S. smoke-free H1 1,584 - 1,311 = 273 decline. ISF H1 2026 gross margin 5,400 / 7,713 = 70.0%. Gross margin 2025 27,282 / 40,648 = 67.1%. ROIC average 2015-2025 (45.6 + 50.2 + 43.4 + 50.7 + 48.7 + 52.1 + 57.2 + 40.6 + 26.8 + 28.6 + 32.5) / 11 = 43.3%. Employees 84,900 - 82,700 = 2,200 (2023-2025); net revenues 40,648 - 35,174 = 5,474, about 5.5 billion. Snus 240.4 - 227.9 = 12.5 million cans. Europe smoke-free 8,127 / 16,854 = 48.2%, about half. Cigarette decline 2% to 3% of 607,367 = 12,147 to 18,221 million units. Operating cash flow over R&D 12,233 / 756 = 16.2 times. Blocked markets 440 / 2,587 = 17%, about a sixth. Market cap against peers 296.88 / 119.41 = 2.5 times British American Tobacco; 296.88 / 114.91 = 2.6 times Altria. Net debt to adjusted EBITDA 43,963 / 17,375 = 2.53. Interest 966 / 14,892 = 6.5% of operating income. Guidance midpoints: (8.35 + 8.50) / 2 = 8.43, reported (7.28 + 7.43) / 2 = 7.36, gap 8.43 - 7.36 = 1.07; earlier adjusted midpoints (8.38 + 8.53) / 2 = 8.46, (8.31 + 8.46) / 2 = 8.39, (8.26 + 8.41) / 2 = 8.34; 8.43 / 7.54 - 1 = 11.8% - growth rates, volumes, margins and excise. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in PMI's Forms 10-K and 10-Q, the recast segment schedules, results releases and market data; operands shown in the source line.
  6. ReportedThe segment's gross profit rose from $13,972 million in 2023 to $15,523 million in 2025, up 11.1%, and its adjusted gross margin was 66.2% in 2025.
    Philip Morris International Form 8-K exhibit 99.2 - 2024 and 2023 results recast into the new segments. — FY2024 · publ. 13 March 2026 · source ↗
  7. ReportedThe segment's gross profit rose from $13,972 million in 2023 to $15,523 million in 2025, up 11.1%, and its adjusted gross margin was 66.2% in 2025.
    Philip Morris International Form 8-K exhibit 99.1 - 2025 and 2024 results recast into the new segments International Smoke-Free, International Combustibles and U.S. — FY2025 · publ. 13 March 2026 · source ↗
  8. Moat Explorer calcThe segment's gross profit rose from $13,972 million in 2023 to $15,523 million in 2025, up 11.1%, and its adjusted gross margin was 66.2% in 2025.
    Moat Explorer calculation from Philip Morris International's reported figures ($ millions unless stated). Excise and revenue 2025: 53,211 / 40,648 = 1.31 dollars of excise per dollar of net revenue; gross of excise 53,211 + 40,648 = 93,859, excise share 53,211 / 93,859 = 56.7%; excise growth 2023-2025 53,211 / 49,404 - 1 = 7.7% against net revenue growth 40,648 / 35,174 - 1 = 15.6%. Product mix 2025: smoke-free 16,854 / 40,648 = 41.5%; combustible 23,794 / 40,648 = 58.5%; smoke-free 2023 12,840 / 35,174 = 36.5%, 2024 14,660 / 37,878 = 38.7%; smoke-free growth 2023-2025 16,854 / 12,840 - 1 = 31.3%; smoke-free revenue 2016 733 to 2025 16,854 = 23 times. Segments 2025: International Smoke-Free 13,996 / 40,648 = 34.4%; International Combustibles 23,436 / 40,648 = 57.7%; U.S. 3,216 / 40,648 = 7.9%; recast gross profit shares 9,576 / 27,304 = 35.1%, 15,523 / 27,304 = 56.9%, 2,206 / 27,304 = 8.1%. Growth 2025: ISF 13,996 / 12,126 - 1 = 15.4%; IC 23,436 / 22,807 - 1 = 2.8%; U.S. 3,216 / 2,944 - 1 = 9.2%. Growth 2024: ISF 12,126 / 11,102 - 1 = 9.2%; IC 22,807 / 21,903 - 1 = 4.1%; U.S. 2,944 / 2,169 - 1 = 35.7%. IC gross profit 15,523 / 13,972 - 1 = 11.1% against IC revenue 23,436 / 21,903 - 1 = 7.0% (2023-2025). Recast reported gross margins 2023: ISF 7,021 / 11,102 = 63.2%, IC 13,972 / 21,903 = 63.8%; 2024: ISF 7,831 / 12,126 = 64.6%, IC 14,687 / 22,807 = 64.4%. Segment sum 2024 12,126 + 22,807 + 2,944 = 37,877 against 37,878 reported. IC shares of net revenues 21,903 / 35,174 = 62.3% (2023), 22,807 / 37,878 = 60.2% (2024). U.S. revenue 3,216 / 2,169 - 1 = 48.3% (2023-2025). Q2 2026 shares: ISF 3,877 / 11,192 = 34.6%, IC 6,459 / 11,192 = 57.7%, U.S. 856 / 11,192 = 7.6%. U.S. gross margin Q2 2026 555 / 856 = 64.8% against 611 / 862 = 70.9%. Swedish Match: 14,460 + 1,495 + 883 = 16,838 total cash paid; U.S. adjusted operating companies income 1,124 / 16,838 = 6.7% pre-tax; reported U.S. OCI 322 / 3,216 = 10.0% of U.S. revenue; adjusted 1,124 / 3,216 = 35.0%. Goodwill and other intangibles 17,264 + 10,884 = 28,148, 28,148 / 69,185 = 40.7% of total assets. Volumes: cigarettes 607,367 / 616,827 - 1 = -1.5% (2025), 607,367 / 612,949 - 1 = -0.9% (2023-2025); heated tobacco units 155,133 / 139,743 - 1 = 11.0% (2025), 139,743 / 125,263 - 1 = 11.6% (2024); HTUs 155,133 / (607,367 + 155,133) = 20.3% of cigarette plus HTU shipments. U.S. ZYN cans 793.7 / 384.8 = 2.06 times (2023-2025), 793.7 / 580.5 - 1 = 36.7% (2025); international nicotine pouches 879.6 - 793.7 = 85.9 million cans (2025), 644.0 - 580.5 = 63.5 (2024); snus 227.9 / 240.4 - 1 = -5.2% (2023-2025); e-vapor 3,330 / 1,651 = 2.0 times. U.S. segment: cigars 358 / 410 - 1 = -12.7%, 358 / 431 - 1 = -16.9% (2023-2025); wellness 238 / 333 - 1 = -28.5%. Cash and dividends: free cash flow 12,233 - 1,569 = 10,664 (2025), 12,217 - 1,444 = 10,773 (2024), 9,204 - 1,321 = 7,883 (2023); dividends paid / free cash flow 8,624 / 10,664 = 80.9% (2025), 8,197 / 10,773 = 76.1% (2024), 7,964 / 7,883 = 101.0% (2023). Payout of declared dividends per share over diluted EPS: 5.64 / 7.26 = 77.7% (2025), 5.30 / 4.52 = 117.3% (2024), 5.14 / 5.02 = 102.4% (2023); over adjusted EPS 5.64 / 7.54 = 74.8%. Annualised dividend 1.60 x 4 = 6.40; 6.40 / 5.64 = 1.13; dividend 5.64 / 1.54 = 3.7 times since 2008; yield 6.40 / 190.48 = 3.4%. R&D 756 / 40,648 = 1.9% of revenue; capex 1,569 / 40,648 = 3.9%. Customers: two customers 12% + 10% = 22% of 2025 net revenues; related-party revenue 4,582 / 40,648 = 11.3%; Megapolis 2,805 / 40,648 = 6.9%; Megapolis growth 2,805 / 2,393 - 1 = 17.2%. Japan 4.2 / 40.6 = 10.3% of net revenues. Canada: RBH carrying value 3,280 fair value at deconsolidation to 51 at 30 June 2026; impairments 2,316 + 511 = 2,827. Valuation: trailing twelve months to June 2026 revenue 40,648 + 21,338 - 19,441 = 42,545; net earnings 11,348 + 5,255 - 5,729 = 10,874; P/E 296.88 / 10.874 = 27.3; P/S 296.88 / 42.545 = 6.98; 2018 P/E 103.78 / 7.911 = 13.1; 2025 P/E 249.68 / 11.348 = 22.0; free cash flow yield 10,664 / 296,880 = 3.6%. Other PMI cigarette brands: 25.4 - 9.8 = 15.6% (2023), 25.3 - 10.7 = 14.6% (2025), a loss of 1.0 point against Marlboro's gain of 0.9. Excise Q2 2026 14,973 / 13,272 - 1 = 12.8% against net revenues 11,192 / 10,140 - 1 = 10.4%. U.S. smoke-free H1 1,584 - 1,311 = 273 decline. ISF H1 2026 gross margin 5,400 / 7,713 = 70.0%. Gross margin 2025 27,282 / 40,648 = 67.1%. ROIC average 2015-2025 (45.6 + 50.2 + 43.4 + 50.7 + 48.7 + 52.1 + 57.2 + 40.6 + 26.8 + 28.6 + 32.5) / 11 = 43.3%. Employees 84,900 - 82,700 = 2,200 (2023-2025); net revenues 40,648 - 35,174 = 5,474, about 5.5 billion. Snus 240.4 - 227.9 = 12.5 million cans. Europe smoke-free 8,127 / 16,854 = 48.2%, about half. Cigarette decline 2% to 3% of 607,367 = 12,147 to 18,221 million units. Operating cash flow over R&D 12,233 / 756 = 16.2 times. Blocked markets 440 / 2,587 = 17%, about a sixth. Market cap against peers 296.88 / 119.41 = 2.5 times British American Tobacco; 296.88 / 114.91 = 2.6 times Altria. Net debt to adjusted EBITDA 43,963 / 17,375 = 2.53. Interest 966 / 14,892 = 6.5% of operating income. Guidance midpoints: (8.35 + 8.50) / 2 = 8.43, reported (7.28 + 7.43) / 2 = 7.36, gap 8.43 - 7.36 = 1.07; earlier adjusted midpoints (8.38 + 8.53) / 2 = 8.46, (8.31 + 8.46) / 2 = 8.39, (8.26 + 8.41) / 2 = 8.34; 8.43 / 7.54 - 1 = 11.8% - growth rates, volumes, margins and excise. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in PMI's Forms 10-K and 10-Q, the recast segment schedules, results releases and market data; operands shown in the source line.
  9. ReportedThe segment's gross profit rose from $13,972 million in 2023 to $15,523 million in 2025, up 11.1%, and its adjusted gross margin was 66.2% in 2025.
    Philip Morris International Form 8-K exhibit 99.1 - 2025 and 2024 results recast into the new segments International Smoke-Free, International Combustibles and U.S. — FY2025 · publ. 13 March 2026 · source ↗
  10. ReportedIn the second quarter of 2026 segment revenue rose 9.8%, 6.4% organically, to $6,459 million.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  11. ReportedThe spread between segment revenue growth and cigarette volume growth is the test; organic revenue growth of 6.4% in the second quarter of 2026 against a volume forecast of minus 2% to 3% says it is intact, and a spread below three points would say it is wearing out.
    Philip Morris International Form 10-Q for the quarter ended 30 June 2026 - segment results, the balance sheet, FDA authorisations and shares outstanding. — Q2 2026 · publ. 24 July 2026 · source ↗
  12. ReportedThe spread between segment revenue growth and cigarette volume growth is the test; organic revenue growth of 6.4% in the second quarter of 2026 against a volume forecast of minus 2% to 3% says it is intact, and a spread below three points would say it is wearing out.
    Philip Morris International second-quarter 2026 results release, Form 8-K exhibit 99.1 - volumes, shares, ZYN and 2026 guidance - shipment volumes, market shares, IQOS, ZYN and Japan. — Q2 2026 · publ. 22 July 2026 · source ↗
Sources
Generated September 26, 2026