Philip Morris International

Balance sheet is sound but leveraged. As of September 30, 2025, total debt was about 50.1 billion and cash 4.0 billion, including roughly 2.0 billion largely trapped in Russia. Interest expense is well covered by operating income and cash generation.

TTM operating cash flow is about 11.5 billion; with TTM capex around 1.4 billion, TTM FCF approximates 10.1 billion, even after a one‑off ~0.8 billion German heated‑tobacco surcharge prepayment to limit interest accruals. This supports the 2025 dividend increase to an annualized 5.88 dollars while preserving flexibility to modestly delever.

We view liquidity as ample and maturities manageable, but prioritize continued deleveraging given regulatory uncertainty.