Surge in Performance and Organizational Restructuring: Executives Dispose of Millions in Company Stock for Tax Purposes

Philip Morris International Inc. (PM) reported that its diluted earnings per share (EPS) jumped from $4.52 a year ago to $7.26 in both the fourth quarter and full year 2025, while adjusted diluted EPS rose to $7.54, marking double-digit growth. The company said smoke-free products generated revenues of $16.9 billion—approximately 41.5% of total net revenues—and set its 2026 adjusted diluted EPS guidance at $8.38–8.53. PMI also maintained its quarterly dividend at $1.47 and reiterated its target of 6–8% annual organic net revenue growth from 2026 through 2028. In addition, effective January 1, 2026, PMI reorganized its operating and reporting structure into three segments: International Smoke-Free, International Combustibles and the U.S. business.

According to the filing, Group CFO Emmanuel Babeau processed roughly $407,000 worth of shares on February 18 via share withholding to cover tax obligations, then sold 33,800 common shares—about $6.14 million—on February 19 to meet his annual Swiss tax liability. After these transactions, he holds approximately 164,000 shares, including RSUs, representing a stake valued at around $30 million based on current share prices.

At the CAGNY Conference in New York on February 18, PMI reaffirmed its 2026 diluted EPS outlook of $7.87–8.02 and adjusted diluted EPS guidance of $8.38–8.53, once again emphasizing its smoke-free product–led growth strategy. Around the same time, CEO Jacek Olczak and other senior executives filed additional Form 4 disclosures detailing the sale of tens of thousands of shares to cover taxes arising from RSU and PSU vesting.

PMI, the global tobacco company behind brands such as Marlboro, has been rapidly expanding its smoke-free portfolio—including IQOS and nicotine pouches—and aims to derive two-thirds of its net revenues from non-combustible products by 2030. Against a backdrop of tightening tobacco regulations and intensifying competition among nicotine alternatives, growth in the U.S. market and the smoke-free segment has emerged as a key driver. PMI’s recent reorganization and increased investment are drawing attention as part of broader structural shifts across the industry.