Petroleos Mexicanos (PEMEX) Q4 2025 earnings summary

Executive summary

• Financial debt reduced by 13% year-over-year, reaching the lowest level in 11 years and improving financial stability.

• Net result improved over 90% year-over-year, with lower cost of sales and narrowed net loss supported by reduced taxes and FX gains.

• Robust liquidity maintained, with cash and cash equivalents up 83% year-over-year to MXN 162.6 billion.

• Credit ratings upgraded: Fitch by 3 notches to BB+ and Moody's by 2 notches to B1.

• Operational stabilization achieved with a 1.3% decrease in liquids production and a 7.4% increase in natural gas output.

Financial highlights

• Total annual sales reached MXN 1,529 billion in 2025, with cost of sales at MXN 1,253 billion.

• EBITDA margin for 2025 was 19%, in line with sector averages; EBITDA reached MXN 33.9 billion, up MXN 21.3 billion year-over-year.

• Cost of sales dropped 31.6% year-over-year to MXN 277.0 billion, mainly due to lower impairment charges and reduced purchases.

• Net debt as of December 31, 2025 was MXN 1,531.6 billion, down 22.6% year-over-year.

• Capital expenditure for 2025 totaled MXN 140.9 billion, fully executed as budgeted.

Outlook and guidance

• Focus on maintaining a neutral debt balance and orderly refinancing of upcoming maturities.

• 2026 investment budget set at MXN 291.4 billion, prioritizing exploration, extraction, and industrial processes.

• ESG initiatives to continue, including emissions reduction and safety programs.

• Market fundamentals indicate favorable refining margins post-turnaround at Deer Park refinery.