Kinder Morgan (KMI) Q1 2026 earnings summary

Executive summary

• Adjusted EPS rose 41% and EBITDA increased 18% year-over-year, marking the strongest first quarter on record, with net income up 36% to $976 million and adjusted net income up 39% to $1,063 million.

• Every business segment delivered growth versus Q1 2025 and outperformed budget expectations, with natural gas as the primary driver, aided by Winter Storm Fern and extended cold weather.

• Largest U.S. natural gas transmission network, transporting ~40% of U.S. production and operating over 58,600 miles of pipelines.

• Monument Pipeline System in Texas was acquired for $500–$505 million, integrating with existing assets and supported by long-term contracts; closing expected by Q2 2026.

• Expansion project backlog reached $10.1 billion, with major projects on time and on budget.

Financial highlights

• Revenues for Q1 2026 were $4,828 million, up from $4,241 million in Q1 2025; operating income rose to $1,444 million from $1,145 million.

• Net income attributable to shareholders was $976 million, up 36% year-over-year; adjusted net income was $3,043 million for 2026, up 5% year-over-year.

• EPS was $0.44 (up 38%) and adjusted EPS was $0.48 (up 41%) for Q1 2026.

• Cash flow from operations totaled $1.5 billion; free cash flow after capital expenditures was $687 million, up 73% year-over-year.

• Declared a quarterly dividend of $0.2975 per share, annualized at $1.19, up 2% from 2025.

Outlook and guidance

• Full-year 2026 adjusted EBITDA is expected to exceed budget by more than 3%, or over $250 million, with 2026 adjusted EBITDA forecasted at $8.6 billion, up 2% from 2025.

• Budgeted 2026 growth: +5% adjusted EPS and +2.5% adjusted EBITDA; dividend guidance for 2026 is $1.19 per share, a 2% increase.

• Most of the outperformance is attributed to Q1, with potential upside from continued gas segment strength and higher oil prices.

• Leverage ratio expected to end 2026 at 3.7x, below the midpoint of the target range.

• Expect over $3 billion annual growth capex over the next few years and pursuit of over $10 billion in additional natural gas opportunities.