Philip Morris signs cigarette manufacturing deal

• Philip Morris International entered a contract manufacturing arrangement with Philip Morris USA, an Altria operating company, for combustible cigarettes.
• The companies expect first shipments under the arrangement to begin in early 2027, subject to readiness and regulatory requirements.
• Philip Morris stated that it does not plan to commercialize combustible cigarettes in the United States.

Philip Morris International (NYSE:PM) announced that its non-U.S. affiliates entered a contract manufacturing arrangement with Philip Morris USA, an operating company of Altria (NYSE:MO), for combustible cigarettes.

The agreement will allow both companies to use their respective cigarette manufacturing capabilities and expertise while Philip Morris International continues focusing on smoke-free products.

Philip Morris International stated that first shipments under the arrangement are expected to begin in early 2027, subject to operational readiness and applicable regulatory requirements, and the company does not expect a material impact on its 2026 financial results.

Philip Morris International stated that the agreement will not change its position in the U.S. market.

The company stated that it has not commercialized combustible cigarettes in the United States and has no plans to do so, while Philip Morris International and Altria will continue operating independently.

Philip Morris International focuses on smoke-free products and nicotine alternatives, while Altria continues managing its U.S. tobacco business and related commercial operations.