Philip Morris International to restructure with new U.S. and international units

STAMFORD, Conn. - Philip Morris International Inc. (NYSE:PM) will implement a new corporate organizational structure effective January 1, 2026, creating separate U.S. and International business units as the tobacco giant continues its transition toward smoke-free products. The company, with a market capitalization of $225 billion and a year-to-date return of 23.27%, remains a prominent player in the tobacco industry as it navigates this strategic shift.

The restructuring, announced alongside the company’s third-quarter 2025 results, will replace the current four geographic segments with three new reportable segments: International Smoke-Free, International Combustibles, and U.S.

Frederic de Wilde, currently President of South and Southeast Asia, Commonwealth of Independent States, Middle East, and Africa Region, has been appointed CEO of PMI International. Stacey Kennedy will continue in her role as CEO of PMI U.S.

"This new organizational structure better reflects the way we do business today and will provide us with the agility and governance to maximize growth over the long-term," said Group CEO Jacek Olczak in a press release statement.

The company plans to begin financial reporting based on the new segments starting in the first quarter of 2026, with historical financial information for 2023-2025 to be disclosed after the full-year 2025 earnings announcement.

PMI’s smoke-free business, which includes heat-not-burn devices, nicotine pouches and e-vapor products, accounted for 41% of the company’s total net revenues in the first nine months of 2025. The company reports its smoke-free products are now available in 100 markets and used by over 41 million adults globally.

The restructuring comes as PMI continues to pursue its stated goal of eventually becoming a smoke-free company. Since 2008, the company has invested over $14 billion to develop and commercialize smoke-free alternatives to cigarettes.

In other recent news, Philip Morris International Inc. reported its third-quarter earnings for 2025, exceeding analysts’ expectations. The company achieved an adjusted diluted earnings per share (EPS) of $2.24, surpassing the forecasted $2.09. Revenue also outperformed projections, reaching $10.8 billion compared to the anticipated $10.63 billion. These results highlight the company’s strong performance, particularly in its smoke-free product lines. Despite the earnings beat, the company’s stock experienced a slight decline in pre-market trading. Analysts continue to monitor Philip Morris’s financial health and growth prospects. These developments are part of the recent updates concerning the company.

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