Kinder Morgan (KMI) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA grew 6% to a record $1.97 billion and Adjusted EPS rose 12% in Q2 2025, with expectations to exceed the original annual budget, driven by strong market fundamentals, expansion projects, and the Outrigger acquisition.

• Net income attributable to shareholders was $715 million, up 24% year-over-year; EPS was $0.32, up 23% from last year.

• Revenue for Q2 2025 rose 13% year-over-year to $4.04 billion, with six-month revenue up 12% to $8.28 billion, reflecting strong demand and expansion projects.

• Project backlog increased to $9.3 billion, with $1.3 billion in new projects added and $750 million placed in service, underpinned by long-term contracts.

• Quarterly dividend increased 2% to $0.2925 per share, with 2025 guidance for $1.17 per share.

Financial highlights

• Q2 2025 revenue: $4.04 billion (+13% YoY); net income: $715 million (+24% YoY); EPS: $0.32 (+23% YoY); Adjusted EBITDA: $1.97 billion (+6% YoY); Adjusted Net Income: $619 million (+13% YoY).

• Six-month revenue: $8.28 billion (+12% YoY); net income: $1.43 billion (+8% YoY); EPS: $0.64 (+8% YoY).

• Cash flow from operations for the first two quarters was $2.811 billion; net debt increased to $32.66 billion.

• Net debt to Adjusted EBITDA ratio at 4.0x, expected to improve to 3.8x–3.9x by year-end.

• Free cash flow after capital expenditures was $1.0 billion for Q2 2025.

Outlook and guidance

• 2025 net income guidance is $2.8 billion, up 8% from 2024; Adjusted EPS guidance $1.27, up 10%; Adjusted EBITDA budgeted at $8.3 billion, up 4%.

• Expect to exceed the original 2025 budget, with most growth from expansion projects and the Outrigger acquisition.

• Dividend expected at $1.17 per share for 2025, a 2% increase over 2024.

• $3.0 billion expected investment in expansion projects, acquisitions, and JV contributions in 2025.

• Significant cash tax benefits anticipated in 2026 and 2027 due to tax reform; not expected to be a material cash taxpayer until 2028.