Since 2016, our Business Transformation Metrics (BTMs) have provided stakeholders with clear, comparable indicators of our progress toward a smoke-free future. These metrics go beyond traditional reporting frameworks to capture aspects unique to our transformation—the decline in cigarette volumes, the growth of smoke-free alternatives, geographic expansion into new markets, and the financial performance of our smoke-free business. BTMs exist to demonstrate intentionality. They show that our transformation is not rhetoric but a measured, strategic commitment backed by capital allocation, commercial focus, and executive accountability.
In 2025, we reviewed our BTMs and updated them to more accurately reflect the current phase of our transformation. As our smoke-free business matures and external expectations shift, we refined these metrics to enhance their clarity, relevance, and alignment with stakeholder priorities. We retired certain indicators that no longer reflect our strategic focus, evolved others to capture progress more precisely, and introduced new metrics where gaps existed. The result is a leaner, more focused set of core BTMs that provide meaningful transparency about our transformation journey while acknowledging the changing landscape and external factors that influence our business transformation
This evolution was essential to ensure that our metrics continue to provide meaningful and transparent insights, capturing not only our progress but also the areas where our control is the strongest; where we retain significant, though sometimes partial, control; and where our influence is more limited or shared—evaluating the broader outcomes and impacts on society and stakeholders, highlighting shifts that occur beyond our direct sphere of control.
In 2025, All 20 Business Transformation Metrics were subject to external assurance by our independent auditor, PwC, confirming that our transformation is both measurable and verifiable (read PwC’s limited assurance report).
* The 2025 data are subject to PwC’s Limited Assurance Report, available here.
Note: Unless otherwise stated, all business transformation metrics include Swedish Match related data as of November 11, 2022 (acquisition date), as well as Wellness business.
2025 progress
Our investments in R&D, capital expenditure, and commercial spending remained fundamentally focused on advancing our smoke-free strategy. In 2025, we achieved a significant milestone: our smoke-free products became available in more than 100 markets worldwide, with more than 50 percent of these classified as low- and middle-income countries (excluding PMI Global Travel Retail)—successfully meeting our aspirations for 2025. This expansion reflects tangible momentum in our transition away from combustible products, with measurable positive outcomes in both consumer adoption and health objectives.
Outlook
Looking ahead to 2030, we continue to aspire to be a substantially smoke-free business, with smoke-free-related net revenues representing over two-thirds of our total annual net revenues globally. Moreover, also by 2030, we aim for around 60 of our markets to have smoke-free net revenues making up over 50 percent of their total net revenues. Of these markets, we aspire for around 40 to derive more than 75 percent of their net revenues from smoke-free.
These aspirations form the backbone of our Business Transformation-Linked Financing Framework issued in 2024 and they are integral components of our VALUE Index, which links performance across our strategic priorities to long-term variable executive compensation.
This online content about our Value Report should be read in conjunction with PMI’s Value Report 2025. This report includes metrics that are subject to uncertainties due to inherent limitations in the nature and methods for data collection and measurement. The precision of different collection and measurement techniques may also vary. This report includes data or information obtained from external sources or third parties. Unless otherwise indicated, the data contained herein cover our operations worldwide for the full calendar year 2025 or reflect the status as of December 31, 2025. Where not specified, data comes from PMI financials, nonfinancials, or estimates.
Unless explicitly stated, the data, information, and aspirations in this report do not incorporate PMI’s Wellness unit, Aspeya. Regarding the Swedish Match acquisition, completed late 2022, unless otherwise indicated, this report includes information pertaining to its sustainability performance. Please also refer to "About this report" on page 3 of the PMI’s Value Report 2025 for more information. Aspirational targets and goals do not constitute financial projections, and achievement of future results is subject to risks, uncertainties and inaccurate assumptions, as outlined in our forward-looking and cautionary statements on page 142. In PMI’s Value Report 2025 and in related communications, the terms “materiality,” “material,” and similar terms are defined in the referenced sustainability standards and are not meant to correspond to the concept of materiality under the U.S. securities laws and/or disclosures required by the U.S. Securities and Exchange Commission.
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Our progress
We’re building PMI’s future on smoke-free products that are a better choice than cigarette smoking. Our vision: these products will one day replace cigarettes.
Value Report
We are committed to transparency and disclosure, and we show the progress we are making toward a world without cigarettes through our reporting.
Our 2025 Roadmap
Our 2025 Roadmap consists of forward-looking goals, that relate to all the areas where we believe we can have the most significant impact.