Philip Morris International (4I1.DE) delivered a solid Q4 2025 with revenue of USD 10.362 billion and a gross margin of 65.4%, supported by a high-margin product portfolio and continued pricing discipline. Operating income reached USD 3.422 billion, yielding an operating margin of 33.0%, while net income stood at USD 2.313 billion and basic/diluted EPS of USD 1.61. On a YoY basis, revenue rose 6.8% and net income surged by roughly 499%, underscoring favorable mix and pricing dynamics as the company progresses its smokefree product strategy. QoQ results show seasonal softness, with revenue down 4.5% and net income down 33.5%, reflecting typical quarterly volatility and cost dynamics as PMI cycles through the year.
The quarter evidences PMI’s enduring profitability, evidenced by an EBITDA of USD 3.737 billion and an EBITDA margin of 36.1%. The company maintains a strong interest-coverage profile (~10.5x) given EBIT of USD 3.422 billion against interest expense of USD 326 million, signaling healthy capacity to service debt and fund ongoing investments in the smokefree ecosystem. Management commentary (when available) consistently emphasizes pricing power, brand strength, and the accelerated shift toward smokefree offerings outside the United States, including HEETS and Marlboro-branded heat-not-burn products. While forward guidance was not disclosed in the provided data, PMI faces regulatory, tax, and FX headwinds that could shape margins and growth trajectories in 2026 and beyond.
Overall, PMI remains well-positioned within the Consumer Defensive sector due to superior profitability, a high-margin smokefree portfolio, and geographic diversification. Investors should monitor regulatory developments, currency movements, and the ongoing evolution of PMI’s product mix as key drivers of risk and upside potential.