Philip Morris International (PM) Q2 2025 Financial Results Summary

# Philip Morris International (PM) Q2 2025 Financial Results Summary

**Release Date: July 22, 2025**

Philip Morris International Inc. (PMI) has released its financial results for the second quarter of 2025, showcasing a notable growth trajectory across various metrics. The following is a summary of the key financial results and operational highlights for the period.

### Results Highlights – Second Quarter 2025

– **Earnings Per Share (EPS)**:
– Reported diluted EPS increased by **26.6%**, reaching **$1.95** compared to **$1.54** in Q2 2024.
– Adjusted diluted EPS grew by **20.1%** to **$1.91** and by **18.9%** excluding currency impact.

– **Net Revenues**:
– Total net revenues totaled **$10.1 billion**, up **7.1%** reported or **6.8%** organically compared to Q2 2024.
– Smoke-free business (SFB) accounted for **41%** of total net revenues, an increase of **2.9 percentage points (pp)** year-over-year.

– **Gross Profit**:
– Gross profit reached **$6.9 billion**, a rise of **12.1%** compared to last year, with smoke-free products contributing significantly, up **23.3%**.

– **Operating Income**:
– Operating income was reported at **$3.7 billion**, showing a growth of **7.8%** compared to Q2 2024.

– **Shipment Volume**:
– Total shipment volume was **200.1 billion units**, a minor increase of **1.2%** year-over-year, boosted primarily by smoke-free products which increased by **11.8%**.

### Smoke-Free Business Performance

– Total smoke-free revenues increased by **15.2%** driven by significant growth in:
– IQOS shipments: increased revenue contributing over **$3 billion** in quarterly net revenue.
– ZYN nicotine pouches: estimated offtake growth of **36%** in June and **26%** for Q2 overall.

– **Inhalable Products**:
– The heat-not-burn (HTU) category saw adjusted in-market sales (IMS) volume growth of **11.4%**.

– **Market Performance**:
– Japan: IQOS market share increased by **2.3pp** to **31.7%** with over **10 million** legal-age consumers.
– Europe: Adjusted IMS growth reached **9.1%**, amid the expansion of ILUMA and other product variants.

### Combustibles Business Performance

– Combustibles revenue growth stood at **2.1%**, despite expected volume declines, supported by strong pricing.

– Marlboro achieved a higher market share, attributing to overall cigarette category stability.

### Dividend Declared

– PMI declared a quarterly dividend of **$1.35** per share, equating to an annualized rate of **$5.40** per share.

### Future Projections

– PMI is raising its full-year guidance, projecting reported diluted EPS in the range of **$7.24 to $7.37** for the remaining fiscal year.
– Adjusted diluted EPS is projected to increase by **13% to 15%**, excluding one-time adjustments.

### Performance Highlights – First Six Months 2025

– Total net revenues for the first half reached **$19.4 billion**, indicating a growth of **6.5%**; organic growth was at **8.4%**.

– Gross profit of **$13.1 billion** signified a **12%** increase year-on-year.

– Total shipment volume for the first six months was **387.9 billion units**, with smoke-free products growing by **13.1%**.

This report illustrates PMI’s strong ongoing transformation towards a smoke-free future, indicating substantial growth across its product lines, particularly in smoke-free segments, while efficiently managing its combustibles sector.

For further details on the financial performance and other metrics, please refer to the full release or conference call scheduled for 9:00 a.m. Eastern Time on July 22, 2025.