Top Takeaways:

• PMI will shift to a new corporate structure on Jan. 1, 2026, centered on PMI International, PMI U.S., and Aspeya.
• Financial reporting will move to three segments: International Smoke-Free, International Combustibles, and U.S.
• Smoke-free products now generate 41% of PMI’s net revenues.

Philip Morris International (PMI) has announced a major overhaul of its organizational structure, a move the company states will support its long-term shift toward a mainly smoke-free business model. The changes, first revealed alongside the company’s third-quarter financial results, will take effect on Jan. 1, 2026.

Under the new structure, PMI will be divided into two main business units—PMI International and PMI U.S.—both reporting directly to CEO Jacek Olczak. PMI’s wellness and healthcare division, Aspeya, will also report to Olczak as the company expands into related categories.

Frederic de Wilde has been named CEO of PMI International, while Stacey Kennedy will remain CEO of PMI U.S., a role she took on after PMI’s acquisition and integration of Swedish Match.

As part of the restructuring, PMI will replace its current four geographic reporting segments with three new reportable segments:

• International Smoke-Free
• International Combustibles
• U.S.

PMI said it will begin using this new segment structure for financial reporting with the first quarter of 2026.

According to the company, the reorganization reflects the rapid growth of its smoke-free business—led by IQOS heated tobacco, Zyn nicotine pouches, and other reduced-risk products—which accounted for 41% of PMI’s total net revenues over the first nine months of 2025. PMI said that grouping smoke-free and combustible operations separately outside the U.S. will better align teams with “the way we do business today” and create the flexibility needed to scale alternatives to cigarettes globally.

“This new organizational structure better reflects the way we do business today and will provide us with the agility and governance to maximize growth over the long term,” Olczak said in a statement.

Creating a dedicated U.S. reporting segment highlights the growing importance of the American market after PMI’s acquisition of Swedish Match, which fully integrated the Zyn nicotine pouch brand. PMI has stated that the U.S. is a key market for future IQOS growth once regulatory approval is in place.

The restructuring also raises Aspeya, PMI’s wellness-oriented business, which the company has positioned as part of its strategy to expand into scientifically validated health and wellness markets. PMI has previously indicated interest in exploring inhalation-based therapeutics and consumer health opportunities alongside its smoke-free portfolio.

PMI said the new structure will “simplify governance, strengthen accountability, and support the company’s smoke-free transformation,” adding that it expects the revised reporting framework to give investors clearer insight into the performance of its smoke-free and combustible businesses as regulatory environments change.