Philip Morris International (PMI) net revenues climbed +7.3% year-on-year (+6.5% in organic terms) to US$40.6 billion in 2025, with its growing smoke-free business representing 41.5% of revenues and nearly 43% of gross profit. Operating income rose by +11.1% (+10.6% organic) to US$14.9 billion.
Crucially, the company highlighted travel retail as one of the strongest-performing channels globally in the smoke-free category in Q4, with airports delivering the highest year-on-year growth in IQOS consumables of any market tracked.
According to company data, PMI Global Travel Retail (airports where IQOS is available) reached a 19.5% heated tobacco share in Q4 2025, representing a +3.5 percentage point increase compared to a year earlier. This marks the largest year-on-year share gain across all key markets included in PMI’s global analysis.
PMI Global Travel Retail Vice President Beste Ermaner said, “This performance underlines the strategic importance of travel retail in advancing PMI’s smoke-free transformation globally, by enhancing access to science-backed smoke-free alternatives for legal-age nicotine users worldwide.
“Our focus will remain on expanding our multi-category smoke-free portfolio and supporting adult nicotine users who would otherwise continue smoking to switch to better alternatives.”
Worldwide and across all channels, PMI smoke-free products are available in 106 markets. The number of legal-age consumers of the company’s smoke-free products reached an estimated 43.5 million (as of 31 December), an increase of around 10 million users in two years, with broad-based growth across all categories.
The smoke-free business across PMI saw full-year shipment volumes rise by +12.8%, net revenues by +15% (14.1% organically) and gross profit increasing by +20.3% (+18.7% organically).
Full-year shipment volume across all PMI products rose by +1.4% to 786.5 billion units in 2025.
IQOS continued to drive the growth of the global heat-not-burn category, in which PMI claims a volume share of around 76%.
PMI Group CEO Jacek Olczak said, “We achieved another remarkable year of results in 2025, with a fifth consecutive year of volume growth, net revenues surpassing US$40 billion, including close to US$17 billion from our smoke-free business, and very good operating margin expansion.
“With excellent results in 2024 and 2025, we have delivered our three-year CAGR targets on operating income and EPS in just two years. With another strong performance expected in 2026, we are on track to outperform our 2024-2026 growth algorithm. This again demonstrates our ability to create sustainable value for our shareholders as we renew our growth targets for 2026-2028.” ✈
