Repsol (REP) Q2 2025 earnings summary

Executive summary

• Q2 2025 adjusted income was €702 million, up 8% sequentially but down 18.3% year-over-year, with net income at €237 million, reflecting resilience amid volatile markets and a major Iberian blackout.

• Operating cash flow for Q2 2025 reached €1.718 billion, up 85.7% year-over-year, and H1 2025 net income was €603 million, down 62.9% year-over-year.

• Upstream production reached the higher end of guidance, with strong commercial and customer business performance, while Industrial was notably impacted by power outages.

• Over €1.2 billion in divestments and asset rotations announced for 2025, including the sale of a 24% interest in Indonesia's Corridor Block and renewable asset sales.

• Shareholder remuneration remains a priority, with a €0.975/share dividend (+8.3% YoY), €700 million in buybacks for 2025, and an additional €0.50/share dividend approved for January 2026.

Financial highlights

• Q2 2025 adjusted income: €702 million (+8% QoQ, –18.3% YoY); net income: €237 million (–63.9% YoY); EBITDA: €1,491 million (–25.5% YoY); operating cash flow: €1,718 million (+85.7% YoY).

• H1 2025 net income: €603 million (–62.9% YoY); adjusted income: €1.353 billion (–36.4% YoY); gross investments: €2.7 billion.

• Net debt at quarter-end: €5.728 billion, down €102 million sequentially; gearing: 17.9%.

• Free cash flow in Q2 2025: €432 million, up €1,006 million year-over-year; group liquidity: €8.069 billion.

• Dividend per share: €0.975 (+8.3% YoY); additional €0.50/share dividend approved for January 2026.

Outlook and guidance

• 2025 cash flow from operations guidance: ~€6 billion; net capex guidance: ~€3.5 billion.

• Upstream production guidance for 2025 at the higher end, with Q2 production at 557,000–589,000 boed.

• Shareholder distributions expected at 30–35% of 2025 operating cash flow, with €700 million in buybacks and €0.975/share dividend.

• New projects in the US and Brazil expected to start in H2 2025 and early 2026.