TotalEnergies (TTE) Q1 2026 earnings summary

Executive summary

• Operations in the Middle East were significantly disrupted by conflict, leading to the evacuation of over 1,300 personnel and the shutdown of key production assets in Qatar, Iraq, and UAE offshore, representing about 15% of total oil and gas output.

• Despite these disruptions, strong operational performance and high commodity prices drove robust financial results, with organic production growth of 4% year-over-year, exceeding annual guidance.

• Adjusted net income rose 41% quarter-over-quarter to $5.4 billion, with IFRS net income at $5.8 billion, driven by strong oil, gas, and power performance.

• Cash flow from operations excluding working capital increased 20% quarter-over-quarter to $8.6 billion.

• The company leveraged its diversified global portfolio and integrated value chain to offset regional losses and capture upside from volatile markets.

Financial highlights

• Q1 2026 cash flow reached EUR 8.6 billion, up 20% year-over-year; adjusted net income rose over 40% to EUR 5.4 billion.

• Adjusted EBITDA reached $12.6 billion, up 25% quarter-over-quarter and 19% year-over-year.

• Return on equity was 14.4% and ROACE 12.7% for the quarter.

• Upstream production grew 4% year-over-year, offsetting Middle East losses; LNG production increased 12% quarter-to-quarter.

• Refining & Chemicals adjusted net operating income rose by nearly EUR 600 million quarter-to-quarter to EUR 1.6 billion.

Outlook and guidance

• Hydrocarbon production (excluding Middle East) expected to grow ~4% in Q2 2026 versus Q2 2025.

• Refining utilization anticipated at 80%-85% in Q2 due to scheduled maintenance and SATORP capacity reduction.

• Full-year 2026 net investment guidance reiterated at EUR 15 billion.

• LNG average selling price for Q2 2026 anticipated around $10 per MMBtu.

• Oil and gas prices expected to remain elevated and volatile due to ongoing geopolitical risks.