Philip Morris invests $37 million in North Carolina facility

WILSON, N.C. - Philip Morris International’s U.S. businesses (NYSE:PM), a prominent player in the tobacco industry with a market capitalization of $250.67 billion, announced Thursday a $37 million investment to expand its manufacturing facility in Wilson, North Carolina. According to InvestingPro data, the company maintains impressive gross profit margins of 66.44% and has shown solid revenue growth of 7.16% over the last twelve months.

The expansion will add a production line for TEREA, the consumables for the IQOS ILUMA heated tobacco system. The Wilson facility currently produces HEETS for IQOS 3.0, which is the only heated tobacco product authorized by the U.S. Food and Drug Administration as a modified risk tobacco product.

"Our U.S. manufacturing footprint is critical to producing innovative smoke-free alternatives for adult consumers," said Stacey Kennedy, PMI U.S. CEO, in a press release statement.

The Wilson factory employs more than 80 full-time staff, including supervisors, engineers, and lab technicians. IQOS 3.0 is currently being commercialized in Austin, Texas, and Jackson, Mississippi, as well as on selected military bases. The company’s strong operational performance is reflected in its dividend yield of 3.66%, with InvestingPro analysis showing 17 consecutive years of dividend increases.

Philip Morris submitted applications for IQOS ILUMA to the FDA on October 20, 2023, and is preparing for its launch pending FDA authorization.

This investment adds to PMI’s other recent U.S. manufacturing expansions, including a $232 million project in Owensboro, Kentucky, and a $600 million manufacturing facility in Aurora, Colorado. These two projects are expected to create nearly 1,000 direct jobs.

Ryan Simons, President of the Wilson Chamber of Commerce, noted that the investment demonstrates "Wilson is a place where global companies can grow and thrive."

The company’s U.S. businesses employ more than 3,000 people across America and operate product manufacturing facilities in Owensboro, Kentucky, and Wilson, North Carolina.

In other recent news, Philip Morris International reported its second-quarter earnings for 2025, with an adjusted diluted earnings per share (EPS) of $1.91, surpassing the forecast of $1.86. However, the company’s revenue of $10.14 billion fell short of the anticipated $10.31 billion. Additionally, Philip Morris announced an 8.9% increase in its quarterly dividend, raising it to $1.47 per share, effective October 20, 2025. This adjustment elevates the annualized dividend rate to $5.88 per share. In another development, UBS has lowered its price target for Philip Morris to $166 from $177, maintaining a Neutral rating. This adjustment is based on reduced forecasts for the company’s ZYN nicotine pouches, with fiscal year 2025/2026 estimates for US ZYN cans revised to 801/922 million. Revenue projections for this product have also been reduced to $2.52/2.76 billion. These developments reflect ongoing adjustments in analyst expectations and corporate strategy.

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