Jun. 2 at 10:33 AM
$PM Philip Morris cuts FY26 adjusted EPS view to
$8.31-
$8.46 from
$8.36-
$8.51
Consensus
$8.41. Philip Morris' Group CEO PMI, Jacek Olczak, will address investors at the 2026 dbAccess Global Consumer Conference in Paris. The company said, "PMI updates its 2026 full-year reported diluted EPS forecast to a range of
$7.18 to
$7.33 to reflect currency and the non-cash impairment of RBH only. Excluding a total 2026 adjustment of
$1.13 per share, the forecast range for adjusted diluted EPS of
$8.31 to
$8.46 represents a projected increase of 10.2% to 12.2% versus
$7.54 in 2025. Excluding a favorable currency impact, at prevailing exchange rates, of
$0.20 per share, this represents growth of 7.5% to 9.5%. In May 2026, pursuant to its obligation under its court-approved plan of compromise and arrangement, PMI's Canadian affiliate, RBH, provided an annual business plan to its Plan Administrator containing updated five-year financial projections reflecting current industry dynamics.
As a result, PMI has determined that the estimated fair value of its investment in RBH may be lower than its carrying value and expects to record a non-cash impairment charge of approximately
$500 million, representing 33 cents of diluted EPS, in the second quarter of 2026. RBH remains deconsolidated from the PMI group, with the remaining carrying value expected to be less than
$100 million. The change in forecasted currency impact primarily reflects unrealized transactional foreign exchange effects from deferred tax liabilities associated with the strengthening Russian ruble. These effects are expected to occur in the second quarter, and we also update our Q2 adjusted diluted EPS forecast for currency only to a range of
$1.97 to
$2.02, now including an estimated unfavorable currency impact of 3 cents at prevailing exchange rates. All other forecast assumptions remain unchanged from those communicated on April 22, 2026."
