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- Asset Impairment (new) — PM will record a $500 million non-cash impairment on its Canadian affiliate RBH investment in Q2 2026, reflecting lower estimated fair value following updated five-year projections.
Philip Morris takes $500M impairment on Canadian unit, trims 2026 EPS forecast for FX
Filed June 2, 2026 · Period ending June 2, 2026 · ~2 min read
Key Changes
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PM will record a $500 million non-cash impairment charge (33 cents per share) on its Canadian affiliate RBH in Q2 2026, following updated five-year projections submitted to the court-appointed Plan Administrator. Remaining carrying value will be under $100 million.
Exhibit 99.1 view on EDGAR → -
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2026 reported diluted EPS forecast revised to $7.18-$7.33 from prior guidance, solely due to the RBH impairment and currency effects. Adjusted diluted EPS guidance of $8.31-$8.46 implies 10.2%-12.2% growth versus 2025, or 7.5%-9.5% excluding favorable currency.
Exhibit 99.1 view on EDGAR → -
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PM launched ZYN ULTRA in June 2026 in the U.S., offering 9mg and 11mg moist variants in a 20-pouch can at a lower price-per-pouch than the flagship dry ZYN 15-pouch format, with additional ZYN extensions planned for the rest of 2026.
Exhibit 99.1 view on EDGAR → -
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Heat-not-burn category developments in Japan following the April 1, 2026 excise tax increase are in line with expectations. April sales were impacted by consumer pantry de-loading, but IQOS maintained a strong category share.
Exhibit 99.1 view on EDGAR → -
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Currency impact update primarily reflects unrealized transactional foreign exchange effects from deferred tax liabilities tied to the strengthening Russian ruble, expected to hit in Q2 2026. Q2 adjusted diluted EPS forecast is now $1.97-$2.02, including an unfavorable 3-cent currency impact.
Exhibit 99.1 view on EDGAR →
Summary
Philip Morris International disclosed a $500 million non-cash impairment charge on its investment in Canadian affiliate RBH, which will reduce Q2 2026 earnings by 33 cents per share. The writedown follows updated five-year financial projections RBH submitted to its court-appointed Plan Administrator in May 2026, reflecting current industry dynamics in the Canadian tobacco market.
RBH remains deconsolidated from PM's financials, and the remaining carrying value will be under $100 million. This is an accounting adjustment, not a cash loss, but it signals deteriorating prospects for the Canadian business.
PM revised its 2026 reported diluted EPS forecast to $7.18-$7.33 to reflect the RBH impairment and currency headwinds, primarily from unrealized foreign exchange effects tied to the strengthening Russian ruble. However, the company reaffirmed its adjusted diluted EPS guidance of $8.31-$8.46, representing 10.2%-12.2% growth versus 2025 (or 7.5%-9.5% excluding favorable currency). All other forecast assumptions remain unchanged from April 2026 guidance. PM also launched ZYN ULTRA in the U.S. this month, a moist nicotine pouch variant in a 20-pouch can format priced lower per pouch than the flagship dry ZYN, aimed at optimizing the brand's price premium and expanding its market reach.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 8, 2026 · How we verify