BP (BP) Q4 2025 (Q&A) earnings summary

Executive summary

• 2025 marked a turnaround year with urgent interventions, strong operational delivery, and progress on strategic goals, including a leadership transition and new CEO in April.

• Underlying replacement cost profit for FY25 was $7.5 billion, reflecting strong operating performance and improved cash conversion.

• Operating cash flow reached $24.5 billion, including a $2.9 billion working capital build.

• Capital expenditure was $14.5 billion, a 10% year-over-year reduction.

• Shareholder distributions were about 30% of operating cash flow, with share buybacks suspended to allocate excess cash to the balance sheet.

Financial highlights

• Underlying replacement cost profit was $7.5 billion in 2025, down from $8.9 billion in 2024.

• Operating cash flow for FY25 was $24.5 billion, compared to $27.3 billion in FY24.

• Net debt reduced by $800 million to $22.2 billion at year-end 2025.

• Full-year CapEx was $14.5 billion, with organic CapEx at $13.6 billion.

• Share buybacks executed in FY25 totaled $4.5 billion, but were later suspended.

Outlook and guidance

• Net debt target remains $14–$18 billion by end of 2027, with visibility to achieve this via divestments.

• CapEx for 2026 guided at $13–$13.5 billion, weighted to 1H26 and at the low end of previous guidance.

• Dividend remains the first financial priority, with buybacks suspended and excess cash allocated to the balance sheet.

• Adjusted free cash flow CAGR exceeded 20% from 2024–2027, with return on average capital employed targeted at >16% by 2027.

• Divestment and other proceeds for 2026 expected at $9–$10 billion, including ~$6 billion from the Castrol transaction.