Philip Morris International announced a new corporate structure that will take effect on January 1 2026, reorganizing the company into three primary units: International Smoke‑Free, International Combustibles, and the U.S. business.
The restructuring follows the release of Q3 2025 earnings, in which the company reported adjusted diluted earnings per share of $2.24 and total revenue of $10.8 billion. Smoke‑free products accounted for 41 % of net revenues in that quarter.
Leadership changes accompany the new structure: Frederic de Wilde has been appointed CEO of PMI International, while Stacey Kennedy will continue as CEO of PMI U.S. Both executives report to Group CEO Jacek Olczak.
The new reporting framework will replace the current four geographic segments. PMI will present financial results under the new structure beginning in Q1 2026 and will disclose historical financial information for 2023‑2025 under the new segmentation after the full‑year 2025 earnings announcement.
Strategically, the move reflects PMI’s long‑term shift toward a smoke‑free business. Since 2008, the company has invested more than $14 billion in developing and commercializing smoke‑free alternatives, which are sold in 100 markets and used by over 41 million adults. The company’s smoke‑free portfolio includes IQOS, ZYN, and VEEV, and the restructuring is intended to accelerate product development and market responsiveness while maintaining disciplined oversight of its traditional cigarette business.
Investors have expressed concerns about increased competition, regulatory challenges, and the sustainability of growth rates, underscoring the significance of the restructuring for PMI’s future trajectory.
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