⚠ Cigars: The Only American Combustible, Down 12.7%Low threat

Philip Morris International (PM) — threat to the moat

PMI's only American combustible, cigars from Swedish Match, fell 12.7% in 2025, and the company says it will not sell cigarettes there.

PMI's American combustible business is small and shrinking. The U.S. segment's combustible revenue, cigars from Swedish Match, was $431 million in 2023, $410 million in 2024 and $358 million in 202512, down 12.7% in the last year3. In the first half of 2026 it was $167 million4.

U.S. cigar net revenues ($M)431202341020243582025PMI recast schedules, 8-K March 2026
Down 17% in two years.

PMI does not sell cigarettes in the United States. It said in August 2026 that "PMI has not commercialized combustible cigarettes in the United States and has no plans to do so"5, even as it agreed to manufacture cigarettes under contract for Philip Morris USA, the Altria subsidiary.

That leaves the American business almost entirely dependent on smoke-free products, and above all on ZYN. There is no cash-generating cigarette business at home to fund the transition, as there is abroad.

The decline is continuing. American combustible revenue was $167 million in the first half of 20266, which on a full-year basis would be below 2025's $358 million7. A business shrinking at this pace contributes little cash to fund the ZYN and IQOS investments that the rest of PMI's American strategy depends on.

The cigar line will show it first only as a signal of how fast traditional American tobacco is fading. Another double-digit fall would take it toward irrelevance, and leave ZYN carrying the segment alone.

References
  1. ReportedThe U.S. segment's combustible revenue, cigars from Swedish Match, was $431 million in 2023, $410 million in 2024 and $358 million in 2025, down 12.7% in the last year.
    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. ReportedThe U.S. segment's combustible revenue, cigars from Swedish Match, was $431 million in 2023, $410 million in 2024 and $358 million in 2025, down 12.7% in the last year.
    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. ReportedThe U.S. segment's combustible revenue, cigars from Swedish Match, was $431 million in 2023, $410 million in 2024 and $358 million in 2025, down 12.7% in the last year.
    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 ↗
  4. ReportedIn the first half of 2026 it was $167 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 ↗
  5. ReportedIt said in August 2026 that "PMI has not commercialized combustible cigarettes in the United States and has no plans to do so", even as it agreed to manufacture cigarettes under contract for Philip Morris USA, the Altria subsidiary.
    Philip Morris International release, 24 August 2026 - contract manufacturing of combustible cigarettes for Philip Morris USA. — August 2026 · publ. 24 August 2026 · source ↗
  6. ReportedAmerican combustible revenue was $167 million in the first half of 2026, which on a full-year basis would be below 2025's $358 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 ↗
  7. ReportedAmerican combustible revenue was $167 million in the first half of 2026, which on a full-year basis would be below 2025's $358 million.
    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 ↗
Sources
Generated September 26, 2026