Core Insights - Philip Morris International (PM) raised its 2025 earnings per share (EPS) guidance to $7.43-$7.56, reflecting strong second-quarter performance driven by smoke-free products, indicating a year-over-year growth of 13-15% [1][10] Financial Performance - In Q2 2025, smoke-free net revenues increased by 15.2% year over year, with gross profit for this segment rising over 23%, contributing 41% to total net revenues and 42% to gross profit [2][10] - Adjusted operating income grew by 16.1% in the quarter, outpacing revenue gains, attributed to strong pricing, improved scale efficiencies, and a favorable category mix towards higher-margin smoke-free products [4][10] Product Performance - The multi-category smoke-free platform showed broad-based growth, with IQOS heated tobacco units' adjusted in-market sales rising by 11.4%, supported by global expansion and recovery in European markets [3] - ZYN experienced a significant rebound, with U.S. consumer offtake increasing by 26% in the quarter and 36% in June, driven by better in-store availability and renewed commercial activity [3] Market Strategy - The raised EPS guidance indicates management's confidence in the sustainability of recent smoke-free category growth, suggesting that the multi-category strategy is gaining traction faster than anticipated [5] Competitive Landscape - Altria Group's "on!" nicotine pouch brand saw an 18% increase in shipment volume, while Turning Point Brands reported nearly tenfold growth in modern oral nicotine pouch sales, contributing $22.3 million in revenues [6][7][8] Valuation Metrics - Philip Morris shares have declined by 10.2% in the past month, compared to the industry's decline of 2.2% [9] - The company trades at a forward price-to-earnings ratio of 20.16X, higher than the industry's average of 14.67X [12] - The Zacks Consensus Estimate for PM's earnings implies year-over-year growth of 14.2% for 2025 and 11.9% for 2026 [13]

Company Overview and Strategic Direction - Philip Morris International is a leading global producer of tobacco and nicotine products, operating in approximately 170 markets with well-known brands such as Marlboro, Parliament, IQOS, ZYN, and VEEV [2] - The company is transitioning from traditional combustible cigarettes to smoke-free alternatives, including heated tobacco devices, oral nicotine pouches, and electronic vapor products [3] Quarterly Performance Highlights - In Q2 2025, adjusted earnings per share were $1.91, exceeding the estimate of $1.86 by 2.7%, while GAAP revenue was $10.1 billion, falling short by 2.1% [1] - Smoke-free products accounted for 41% of net revenue, an increase of 2.9 percentage points year-over-year, with gross profit from these products exceeding 42% of total gross profit [4] - Shipments of smoke-free products rose by 11.8%, with net revenue in this segment increasing by 15.2% and gross profit up by 23.3% [4] Product Performance - IQOS generated over $3 billion in net revenue, holding a 76% share of the global heat-not-burn category, with sales volumes in Europe growing by 9.1% and in Japan by 7.8% [5] - ZYN pouches saw a global shipment volume increase of 26.5%, with U.S. shipments rising over 40% to 190 million cans [6] - VEEV e-vapor product volumes more than doubled, achieving top market positions in six European countries [6] Traditional Cigarette Segment - Traditional cigarette volumes declined by 1.5%, but revenue for this segment grew by 2.1% due to strong pricing [7] - Marketing, Administration, and Research Costs increased by 16.0% compared to the previous year [7] Regional Performance - Europe's organic revenue rose by 7.3%, driven by smoke-free growth, while the Americas experienced a 17% increase in organic net revenues, primarily from oral nicotine [8] - The European market faced a 1.7% decline in shipment volume, mainly due to cigarette declines in specific countries [8] Future Outlook - The company raised its full-year adjusted diluted EPS guidance to $7.43, reflecting an 11.5% to 13.5% growth from last year's adjusted EPS of $6.57 [10] - Organic net revenue growth is forecasted at 6-8%, with smoke-free product volumes expected to grow by 12-14% and cigarette volumes projected to decline by about 2% [10] - Capital expenditure guidance is set at $1.6 billion, primarily for smoke-free product scale-up, with operating cash flow expected around $11.5 billion [10]

(Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33708 Philip Morris International Inc. | (Exact name of registrant as specified in its charter) | | | | | --- | ...

Core Viewpoint - Philip Morris (PM) is experiencing significant selling pressure, with a 10.4% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better-than-previously predicted earnings [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - PM's current RSI reading is 27.52, suggesting that the heavy selling may be exhausting itself, indicating a potential bounce back towards equilibrium in supply and demand [5]. - The RSI helps investors identify entry opportunities when a stock is undervalued due to unwarranted selling pressure [3]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that PM will report better earnings, leading to a 0.5% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions is typically associated with price appreciation in the near term, further supporting the potential for a rebound in PM's stock price [7]. - PM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating a strong potential for a turnaround [8].

Financial Performance - Philip Morris International shares sank after missing quarterly sales estimates [1] Market Trends - Demand for cigarettes continued to decline [1]

Group 1 - Philip Morris International Inc. held its Q2 2025 earnings call on July 22, 2025, with key participants including CFO Emmanuel Babeau and VP of Investor Relations James R. Bushnell [1][2] - The company released detailed information regarding its Q2 2025 results, which is accessible on its website [3] - A glossary of terms and reconciliations for non-GAAP financial measures is available in the company's Form 8-K and on the Investor Relations website [4]

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Company Performance - Philip Morris International CEO Jacek Olczak discusses Q2 earnings [1] Product Strategy - Focus on smoke-free products [1]

Core Insights - Philip Morris International Inc. (PM) reported strong second-quarter 2025 results, with both net sales and earnings increasing year over year, although net sales missed the Zacks Consensus Estimate while earnings exceeded it [1][10] - The company has raised its full-year guidance reflecting robust momentum across regions and product categories, particularly in smoke-free products like IQOS and ZYN [1][10] Financial Performance - Adjusted earnings per share (EPS) for the second quarter were $1.91, a 20.1% increase year over year, beating the Zacks Consensus Estimate of $1.85 [2][10] - Net revenues reached $10,140 million, a 7.1% increase on a reported basis and 6.8% on an organic basis, but fell short of the Zacks Consensus Estimate of $10,255 million [3][10] - Adjusted operating income rose 16.1% to $4,246 million, driven by improved pricing and positive volume/mix, despite increased costs in marketing and administration [6][10] Product Performance - Revenues from smoke-free products increased 15.2%, accounting for 41% of total revenues, with strong performance in both IQOS and ZYN [5][10] - Net revenues from combustible products grew 2.1% year over year, supported by strong pricing despite expected volume declines [4][10] Regional Performance - European region net revenues grew 8.7% to $4,234 million, driven by positive pricing and volume mix, although total shipment volumes decreased [8][10] - In the Americas, revenues rose 12.7% to $1,272 million, primarily due to nicotine pouch sales, with total shipment volumes increasing [11][10] - The SSEA, CIS & MEA regions saw net revenues increase by 5.6% to $2,926 million, while the EA, AU & PMI GTR regions grew 2.1% to $1,708 million [8][9] Future Outlook - For 2025, adjusted EPS is now projected in the range of $7.43-$7.56, indicating 13-15% growth, up from the previous range of $7.36-$7.49 [13][10] - PM expects net revenues to increase 6-8% on an organic basis and operating income to rise 11-12.5% [15][10] - The company anticipates operating cash flow exceeding $11.5 billion in 2025, with capital expenditures around $1.6 billion to support smoke-free business investments [15][10]

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