Philip Morris International

Management allocates capital toward the smoke‑free pivot: most capex is directed to heated‑tobacco and pouch capacity; 2024 capex totaled about 1.44 billion and 2025 is guided around 1.6 billion. The 2022 Swedish Match acquisition is strategically on point given ZYN’s U.S. leadership and FDA PMTA authorizations.

Conversely, PMI exited Vectura in 2024 at a loss, reflecting willingness to reverse a non‑core move. Dividends remain central (raised to $5.88 annualized in 2025). Buybacks are minimal while deleveraging continues, which we view as prudent. Stock‑based compensation and dilution are modest relative to the 1.56 billion‑share base.

Overall, disciplined with one notable misstep, now corrected.