Philip Morris International Inc.
For the period ended Sep 30, 2025. Filed Oct 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 24, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Financial Statements (Unaudited)
Item 1. Financial Statements.
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data)
| For the Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| Net revenues 1 & 2 (Note 13) | $30,286 | $28,172 |
| Cost of sales | 9,806 | 9,906 |
| Gross profit | 20,480 | 18,266 |
| Marketing, administration and research costs (Notes 8, 9 & 16) | 8,920 | 8,123 |
| Impairment of goodwill (Note 5) | 41 | — |
| Operating income | 11,519 | 10,143 |
| Interest expense, net | 748 | 817 |
| Pension and other employee benefit costs (Note 4) | 37 | 44 |
| Earnings before income taxes | 10,734 | 9,282 |
| Provision for income taxes | 2,062 | 2,145 |
| Equity investments and securities (income)/loss, net (Note 13) | (926) | (852) |
| Net earnings | $9,598 | $7,989 |
| Net earnings attributable to noncontrolling interests | 391 | 353 |
| Net earnings attributable to PMI | $9,207 | $7,636 |
| Per share data (Note 7): | ||
| Basic earnings per share | $5.90 | $4.90 |
| Diluted earnings per share | $5.89 | $4.89 |
(1) Includes net revenues from related parties of $3,387 million and $2,866 million for the nine months ended September 30, 2025 and 2024, respectively.
(2) Net revenues are shown net of excise tax on products. For the nine months ended September 30, 2025 and 2024, excise tax on products was $39,495 million and $38,535 million, respectively.
Condensed Consolidated Statements of Earnings
(in millions of dollars, except per share data)
| For the Three Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| Net revenues 1 & 2 (Note 13) | $10,845 | $9,911 |
| Cost of sales | 3,487 | 3,366 |
| Gross profit | 7,358 | 6,545 |
| Marketing, administration and research costs (Notes 8 & 9) | 3,095 | 2,891 |
| Operating income | 4,263 | 3,654 |
| Interest expense, net | 230 | 189 |
| Pension and other employee benefit costs (Note 4) | 14 | 15 |
| Earnings before income taxes | 4,019 | 3,450 |
| Provision for income taxes | 751 | 735 |
| Equity investments and securities (income)/loss, net (Note 13) | (345) | (500) |
| Net earnings | 3,613 | 3,215 |
| Net earnings attributable to noncontrolling interests | 135 | 133 |
| Net earnings attributable to PMI | $3,478 | $3,082 |
| Per share data (Note 7): | ||
| Basic earnings per share | $2.23 | $1.98 |
| Diluted earnings per share | $2.23 | $1.97 |
(1) Includes net revenues from related parties of $1,307 million and $1,045 million for the three months ended September 30, 2025 and 2024, respectively.
(2) Net revenues are shown net of excise tax on products. For the three months ended September 30, 2025 and 2024, excise tax on products was $14,221 million and $13,773 million, respectively.
Condensed Consolidated Statements of Comprehensive Earnings
| For the Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| Net earnings | $9,598 | $7,989 |
| Other comprehensive earnings (losses), net of income taxes: | ||
| Change in currency translation adjustments: | ||
| Unrealized gains (losses), net of income taxes of $410 in 2025 and $14 in 2024 | (1,917) | (365) |
| (Gains)/losses transferred to earnings, net of income taxes of $0 in 2025 and 2024 (Note 2 and 16) | — | 155 |
| Change in net loss and prior service cost: | ||
| Net gains (losses) and prior service costs, net of income taxes of $(7) in 2025 and $0 in 2024 | 19 | — |
| Amortization of net losses, prior service costs and net transition costs, net of income taxes of $(36) in 2025 and $(26) in 2024 | 133 | 103 |
| Change in fair value of derivatives accounted for as hedges: | ||
| Gains (losses) recognized, net of income taxes of $31 in 2025 and $(28) in 2024 | (168) | 126 |
| (Gains) losses transferred to earnings, net of income taxes of $13 in 2025 and $30 in 2024 | (69) | (137) |
| Total other comprehensive earnings (losses) | (2,002) | (118) |
| Total comprehensive earnings | 7,596 | 7,871 |
| Less comprehensive earnings (losses) attributable to: | ||
| Noncontrolling interests | 395 | 312 |
| Comprehensive earnings attributable to PMI | $7,201 | $7,559 |
Condensed Consolidated Statements of Comprehensive Earnings
| For the Three Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| Net earnings | $3,613 | $3,215 |
| Other comprehensive earnings (losses), net of income taxes: | ||
| Change in currency translation adjustments: | ||
| Unrealized gains (losses), net of income taxes of $(23) in 2025 and $144 in 2024 | (291) | (730) |
| Change in net loss and prior service cost: | ||
| Net gains (losses) and prior service costs, net of income taxes of $0 in 2025 and $0 in 2024 | 7 | — |
| Amortization of net losses, prior service costs and net transition costs, net of income taxes of $(11) in 2025 and $(8) in 2024 | 40 | 36 |
| Change in fair value of derivatives accounted for as hedges: | ||
| Gains (losses) recognized, net of income taxes of $(12) in 2025 and $27 in 2024 | 67 | (160) |
| (Gains) losses transferred to earnings, net of income taxes of $4 in 2025 and $7 in 2024 | (19) | (43) |
| Total other comprehensive earnings (losses) | (196) | (897) |
| Total comprehensive earnings | 3,417 | 2,318 |
| Less comprehensive earnings (losses) attributable to: | ||
| Noncontrolling interests | 106 | 198 |
| Comprehensive earnings attributable to PMI | $3,311 | $2,120 |
Condensed Consolidated Balance Sheets
| September 30,2025 | December 31,2024 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | $4,037 | $4,216 |
| Trade receivables (less allowances of $25 in 2025 and $47 in 2024) (1) | 4,796 | 3,789 |
| Other receivables (less allowances of $23 in 2025 and $22 in 2024) | 1,027 | 886 |
| Inventories: | ||
| Leaf tobacco | 2,300 | 2,080 |
| Other raw materials | 2,702 | 2,261 |
| Finished product | 5,265 | 5,112 |
| 10,267 | 9,453 | |
| Other current assets | 2,538 | 1,826 |
| Total current assets | 22,665 | 20,170 |
| Property, plant and equipment, at cost | 19,186 | 16,685 |
| Less: accumulated depreciation | 11,071 | 9,375 |
| 8,115 | 7,310 | |
| Goodwill (Note 5) | 17,181 | 16,600 |
| Other intangible assets, net (Note 5) | 11,146 | 11,327 |
| Equity investments (Note 13) | 3,133 | 2,654 |
| Deferred income taxes | 1,057 | 940 |
| Other assets (less allowances of $12 in 2025 and $26 in 2024) | 3,764 | 2,783 |
| TOTAL ASSETS | $67,061 | $61,784 |
(1) Includes trade receivables from related parties of $905 million and $691 million as of September 30, 2025, and December 31, 2024, respectively. For further details, see Note 13. Related Parties - Equity Investments and Other.
Continued
Condensed Consolidated Balance Sheets (Continued)
(in millions of dollars, except share data)
| September 30,2025 | December 31,2024 | |
|---|---|---|
| LIABILITIES | ||
| Short-term borrowings (Note 11) | $1,880 | $137 |
| Current portion of long-term debt (Note 11) | 6,339 | 3,392 |
| Accounts payable | 3,978 | 3,952 |
| Accrued liabilities: | ||
| Marketing and selling | 1,405 | 1,015 |
| Taxes, except income taxes | 5,332 | 6,904 |
| Employment costs | 1,402 | 1,305 |
| Dividends payable | 2,311 | 2,120 |
| Other | 3,237 | 2,832 |
| Income taxes | 835 | 1,258 |
| Total current liabilities | 26,719 | 22,915 |
| Long-term debt (Note 11) | 41,863 | 42,166 |
| Deferred income taxes | 1,999 | 2,517 |
| Employment costs | 3,222 | 2,940 |
| Other liabilities | 2,242 | 1,116 |
| Total liabilities | 76,045 | 71,654 |
| Contingencies (Note 9) | ||
| STOCKHOLDERS’ (DEFICIT) EQUITY | ||
| Common stock, no par value (2,109,316,331 shares issued in 2025 and 2024) | — | — |
| Additional paid-in capital | 2,400 | 2,335 |
| Earnings reinvested in the business | 35,557 | 32,869 |
| Accumulated other comprehensive losses (Note 12) | (13,320) | (11,314) |
| 24,637 | 23,890 | |
| Less: cost of repurchased stock (552,694,135 and 554,470,731 shares in 2025 and 2024, respectively) | 35,551 | 35,640 |
| Total PMI stockholders’ deficit | (10,914) | (11,750) |
| Noncontrolling interests | 1,930 | 1,880 |
| Total stockholders’ deficit | (8,984) | (9,870) |
| TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $67,061 | $61,784 |
Condensed Consolidated Statements of Cash Flows
| For the Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||
| Net earnings | $9,598 | $7,989 |
| Adjustments to reconcile net earnings to operating cash flows: | ||
| Depreciation and amortization expense | 1,475 | 1,310 |
| Impairment of goodwill and other intangibles (Note 5) | 41 | 27 |
| Loss on sale of Vectura Group (Notes 2 & 8) | — | 198 |
| Deferred income tax (benefit) provision | (433) | 20 |
| Restructuring charges, net of cash paid (Note 16) | 216 | 134 |
| Cash effects of changes, net of the effects from acquired and divested companies: | ||
| Receivables, net | (709) | (987) |
| Inventories | (48) | 1,265 |
| Accounts payable | (28) | (261) |
| Accrued liabilities and other current assets | (2,479) | (643) |
| Income taxes | (564) | (241) |
| Pension plan contributions (Note 4) | (91) | (81) |
| Other | 546 | (515) |
| Net cash provided by (used in) operating activities | 7,524 | 8,215 |
| CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | ||
| Capital expenditures | (1,125) | (1,166) |
| Proceeds from sale of business, net of cash disposed (Note 2) | 32 | — |
| Acquisitions, net of acquired cash (Note 2) | — | 44 |
| Equity investments | (48) | (124) |
| Collateral posted/settlements for derivatives, (paid)/returned (Note 6) | (2,318) | (159) |
| Other | (80) | (128) |
| Net cash provided by (used in) investing activities | (3,539) | (1,533) |
Continued
Condensed Consolidated Statements of Cash Flows (Continued)
| For the Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | ||
| Short-term borrowing activity by original maturity: | ||
| Net issuances (repayments) - maturities of 90 days or less | $1,733 | $(1,452) |
| Issuances - maturities longer than 90 days | 170 | 100 |
| Repayments - maturities longer than 90 days | (170) | (433) |
| Long-term debt proceeds | 3,596 | 5,194 |
| Long-term debt repaid | (2,316) | (2,381) |
| Dividends paid | (6,329) | (6,091) |
| Collateral received/settlements for derivatives, received/(returned) | (815) | 22 |
| Noncontrolling interests activity and Other | (420) | (337) |
| Net cash provided by (used in) financing activities | (4,551) | (5,378) |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 373 | (149) |
| Cash, cash equivalents and restricted cash (1): | ||
| Increase (Decrease) | (193) | 1,155 |
| Balance at beginning of period | 4,254 | 3,146 |
| Balance at end of period | $4,061 | $4,301 |
(1)The amounts for cash, cash equivalents and restricted cash shown above include restricted cash of $24 million and $43 million as of September 30, 2025 and 2024, respectively, and $38 million and $86 million as of December 31, 2024 and 2023, respectively, which were included in other current assets in the condensed consolidated balance sheets.
Condensed Consolidated Statements of Stockholders’ (Deficit) Equity
For the Nine Months Ended September 30, 2025 and 2024
(in millions of dollars, except per share amounts)
| PMI Stockholders’ (Deficit) Equity | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CommonStock · AdditionalPaid-inCapital · EarningsReinvested intheBusiness · AccumulatedOtherComprehensive Losses · Cost ofRepurchasedStock · NoncontrollingInterests · Total | |||||||||||||
| Balances, January 1, 2024 | $— | $2,285 | $34,090 | $(11,815) | $(35,785) | $1,779 | $(9,446) | ||||||
| Net earnings | 7,636 | 353 | 7,989 | ||||||||||
| Other comprehensive earnings (losses), net of income taxes | (77) | (41) | (118) | ||||||||||
| Issuance of stock awards | (2) | 144 | 142 | ||||||||||
| Dividends declared (3.95 per share) | (6,170) | (6,170) | |||||||||||
| Dividends paid to noncontrolling interests | (360) | (360) | |||||||||||
| Acquisitions (Note 2) | 159 | 159 | |||||||||||
| Sale (purchase) of subsidiary shares to/(from) noncontrolling interests | 91 | 91 | |||||||||||
| Balances, September 30, 2024 | $— | $2,283 | $35,556 | $(11,892) | $(35,641) | $1,981 | $(7,713) | ||||||
| Balances, January 1, 2025 | $— | $2,335 | $32,869 | $(11,314) | $(35,640) | $1,880 | $(9,870) | ||||||
| Net earnings | 9,207 | 391 | 9,598 | ||||||||||
| Other comprehensive earnings (losses), net of income taxes | (2,006) | 4 | (2,002) | ||||||||||
| Issuance of stock awards | 65 | 89 | 154 | ||||||||||
| Dividends declared ($4.17 per share) | (6,519) | (6,519) | |||||||||||
| Dividends paid to noncontrolling interests | (345) | (345) | |||||||||||
| Balances, September 30, 2025 | $— | $2,400 | $35,557 | $(13,320) | $(35,551) | $1,930 | $(8,984) | ||||||
Condensed Consolidated Statements of Stockholders’ (Deficit) Equity
For the Three Months Ended September 30, 2025 and 2024
(in millions of dollars, except per share amounts)
| PMI Stockholders’ (Deficit) Equity | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CommonStock · AdditionalPaid-inCapital · EarningsReinvested intheBusiness · AccumulatedOtherComprehensive Losses · Cost ofRepurchasedStock · NoncontrollingInterests · Total | |||||||||||||
| Balances, July 1, 2024 | $— | $2,249 | $34,582 | $(10,930) | $(35,645) | $1,802 | $(7,942) | ||||||
| Net earnings | 3,082 | 133 | 3,215 | ||||||||||
| Other comprehensive earnings (losses), net of income taxes | (962) | 65 | (897) | ||||||||||
| Issuance of stock awards | 34 | 4 | 38 | ||||||||||
| Dividends declared ($1.35 per share) | (2,108) | (2,108) | |||||||||||
| Dividends paid to noncontrolling interests | (98) | (98) | |||||||||||
| Sale (purchase) of subsidiary shares to/(from) noncontrolling interests | 79 | 79 | |||||||||||
| Balances, September 30, 2024 | $— | $2,283 | $35,556 | $(11,892) | $(35,641) | $1,981 | $(7,713) | ||||||
| Balances, July 1, 2025 | $— | $2,364 | $34,376 | $(13,153) | $(35,553) | $1,954 | $(10,012) | ||||||
| Net earnings | 3,478 | 135 | 3,613 | ||||||||||
| Other comprehensive earnings (losses), net of income taxes | (167) | (29) | (196) | ||||||||||
| Issuance of stock awards | 36 | 2 | 38 | ||||||||||
| Dividends declared ($1.47 per share) | (2,297) | (2,297) | |||||||||||
| Dividends paid to noncontrolling interests | (130) | (130) | |||||||||||
| Balances, September 30, 2025 | $— | $2,400 | $35,557 | $(13,320) | $(35,551) | $1,930 | $(8,984) | ||||||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.