Shell (SHEL) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 Adjusted Earnings of $9.8 billion and income attributable to shareholders of $10.8 billion, driven by strong operational performance, higher realised prices, and portfolio repositioning despite Middle East disruptions.

• Cash flow from operations reached $21.4 billion, supported by higher prices and a $3.4 billion working capital inflow.

• Completed significant portfolio actions, including the ARC Resources acquisition (pending closure) and divestments such as Jiffy Lube, South Africa, and Sprng Energy.

• Maintained disciplined capital allocation, with a new $3 billion share buyback and a 40-50% CFFO distribution policy.

• Continued focus on cost reduction, operational efficiency, and strategic growth investments.

Financial highlights

• Adjusted Earnings for Q2 2026 were $9.8 billion; Adjusted EBITDA was $20.7 billion; free cash flow reached $17.5 billion.

• Cash flow from operations was $21.4 billion, with a $3.4 billion working capital inflow.

• Net debt reduced to $41.8 billion from $52.6 billion in Q1 2026; gearing improved to 18.7%-19%.

• Announced $3 billion in share buybacks to be completed by Q3 results, with total Q2 shareholder distributions of $5.2 billion.

• Revenue for Q2 2026 was $94.7 billion, up from $65.4 billion in Q2 2025.

Outlook and guidance

• 2026 cash capex guidance remains at $24–$26 billion, including ARC Resources; $20–$22 billion per year targeted for 2027–2028.

• Q3 2026 guidance: Integrated Gas production 570–630 kboe/d, LNG liquefaction 7.1–7.7 Mt, Upstream production 1,680–1,880 kboe/d, refinery utilisation 93–101%.

• Committed to $5–$7 billion in structural cost reductions by 2028, with $5.8 billion delivered since 2022.

• ARC Resources acquisition expected to complete in Q3 2026, supporting 4% CAGR production growth to 2030.

• Confident in maintaining capex range despite inflation and supply chain pressures.