Phillips 66 (PSX) Q4 2025 earnings summary

Executive summary

• Achieved $2.9B in Q4 2025 earnings ($7.17/share), $1.0B adjusted earnings ($2.47/share), and record operational performance with 99% crude utilization and 88% clean product yield.

• Full-year 2025 earnings were $4.4B ($10.79/share), adjusted earnings $2.6B ($6.44/share), and adjusted EBITDA $8.36B.

• Portfolio optimized through WRB Refining LP acquisition, major asset sales, and divestitures in Germany/Austria; ceased fuel production at Los Angeles refinery.

• Record NGL transportation and fractionation volumes, up over 1 MMBD and 22% year-over-year.

• Returned over 50% of net operating cash flow to shareholders and reduced net debt-to-capital to 38%.

Financial highlights

• Q4 2025 earnings: $2.9B; adjusted earnings: $1.0B; adjusted EPS: $2.47; operating cash flow: $2.8B; capital spending: $682M; $756M returned to shareholders.

• Full-year 2025 earnings: $4.4B; adjusted earnings: $2.6B; adjusted EPS: $6.44; adjusted EBITDA: $8.36B.

• Net debt-to-capital at year-end: 38%; year-end debt balance: $19.7B; cash and cash equivalents: $1.1B.

• Returned $3.1B to shareholders in 2025, over 50% of net operating cash flow.

• Q4 adjusted EBITDA: $2.5B; Q4 realized refining margin: $12.48/bbl.

Outlook and guidance

• 2026 capital budget: $2.4B ($1.1B sustaining, $1.3B organic growth); targeting mid-single-digit adjusted EBITDA growth in midstream, aiming for $4.5B run-rate by end of 2027.

• Q1 2026 refining crude utilization expected in low 90s%; turnaround expenses $170M–$190M in Q1, $550M–$600M for full year.

• Corporate and other costs projected at $1.5B–$1.6B; D&A $2.1B–$2.3B.

• Committed to returning >50% of net operating cash flow to shareholders via dividends and buybacks.

• Strategy for 2026 focuses on disciplined capital allocation, further debt reduction, and continued shareholder returns.