The Williams Companies (WMB) Q4 2025 earnings summary

Executive summary

• Achieved record GAAP net income of $2.615 billion and adjusted net income of $2.571 billion for 2025, up 18% and 10% year-over-year, respectively.

• Adjusted EBITDA reached $7.75 billion, a 9% increase from 2024, with a five-year CAGR of 9%.

• Cash flow from operations rose 19% to $5.898 billion, and available funds from operations (AFFO) increased 9% to $5.858 billion.

• Dividend raised 5% to $2.10 annualized for 2026, marking 52 consecutive years of payments.

• Completed 12 projects and announced 10 new projects in 2025, including major pipeline and power innovation initiatives.

Financial highlights

• GAAP EPS was $2.14, up from $1.82 in 2024; adjusted EPS was $2.10, up from $1.92.

• Debt-to-adjusted EBITDA at year-end was 3.71x, with a dividend coverage ratio of 2.40x (AFFO basis).

• Fourth-quarter and full-year net income increased by $248 million and $393 million, respectively, driven by higher service revenues, favorable derivative gains, and higher equity earnings.

• Impairments of $212 million and higher tax provisions partially offset gains.

Outlook and guidance

• 2026 adjusted EBITDA guidance set at $8.05–$8.35 billion, up 6% at midpoint from 2025.

• 2026 growth capex expected between $6.1–$6.7 billion; maintenance capex $850–$950 million.

• Leverage ratio for 2026 anticipated at ~4.0x; dividend increased to $2.10 annualized.