Philip Morris International (NYSE: PM) announced a contract manufacturing arrangement for combustible cigarettes with Philip Morris USA, an operating company of Altria (NYSE: MO).

Under the agreement, PMI's non-U.S. affiliates will manufacture combustible cigarettes in collaboration with Philip Morris USA, leveraging the manufacturing capabilities of both companies. First shipments are expected to begin in early 2027, subject to operational readiness and applicable regulatory requirements.

PMI stated the arrangement is not expected to have a material impact on its 2026 financial results. The company also confirmed it has no plans to commercialize combustible cigarettes in the United States, and the agreement will not change that position.

PMI and Altria will continue to operate independently, each maintaining responsibility for their own commercialization, distribution, and regulatory activities.